HGP Intelligent Energy to Go Public via SPAC Merger Valued at $1.2 Billion

HGP Intelligent Energy, a Dallas-based nuclear services firm, is pursuing a public listing through a merger with special purpose acquisition company Meshflow Acquisition Corp. This deal implies a pro forma equity value of approximately $1.2 billion and is expected to generate around $345 million in gross proceeds, which HGP plans to use to commercialize its nuclear technology designed for powering AI data centers and local power grids.

The merger will create a new holding company called Leyte Parent, Inc., with HGP's pre-money equity valuation set at $800 million. The valuation could rise to $1.2 billion if there are no redemptions by Meshflow shareholders.

HGP's flagship initiative, the CoreHeld Project, aims to retrofit decommissioned naval reactors into commercial power plants capable of generating between 450 and 520 megawatts of electricity. This approach focuses on recycling existing technology rather than building new reactors from scratch, which often incurs high costs and lengthy timelines.

Key technologies being developed by HGP include a variable-speed reactor coolant pump system for real-time load-following capabilities and NthSim, a digital twin modeling platform that optimizes reactor performance and safety without physical tests.

The timing of this SPAC merger is significant, as it follows HGP's selection by the Department of Energy for its Nuclear AI Moonshot program, which aims to innovate nuclear deployment through artificial intelligence. Additionally, HGP has partnered with the Shaw Group to enhance nuclear lifecycle innovation.