Pull the plug on Dunleavy's plan to put $25 million into Idaho nuclear research
When AIDEA announced plans to put $25 million of public money into a private company doing nuclear research in Idaho, the state corporation did not reveal the politics behind this move or mention that Matt Larkin, the Anchorage pollster described by Gov. Mike Dunleavy as a “good friend,” has a key role in promoting the enterprise.
AIDEA’s approval of the $25 million “anchor investment” in NuCube Energy should be reversed by the next governor and Legislature. A speculative investment of this nature should not be made without public involvement and a clear examination of the risks and possible rewards.
Here is the AIDEA press release from October 21.
The press release by AIDEA employee Andrew Jensen, former head of Dunleavy’s imaginary Office of Food Security, failed to mention exactly who approved the $25 million investment for AIDEA.
He failed to mention whether the AIDEA board voted on the proposal or who signed off on it. He failed to mention what process AIDEA undertook to decide that this specific investment deserved $25 million of state money, as opposed to other competing research companies.
The mishandling of this incident is indicative of a widespread problem with AIDEA—its failure to conduct business out in the open, concealing vital information from the public and legislators.
It’s the wrong way to handle public money within a state corporation. And it creates good reason for skepticism about everything AIDEA touches.
AIDEA has also failed to disclose what role Dunleavy had in making this investment and whether it was his idea.
Jensen’s press release quotes Dunleavy as saying he welcomes the decision, suggesting that Dunleavy knew nothing about it and had nothing to do with it.
There is no reason to believe that.
The private company promoting this venture said it discussed the idea with Dunleavy at his so-called sustainable energy conference last spring.
On July 30, NuCube Energy announced it had signed an agreement with Matt Larkin, Dunleavy’s friend, to create “NuAlaska,” a joint initiative to promote nuclear energy projects in Alaska.
Larkin is founder and CEO of the “Alaska Fund,” which “will lead the effort to finance the construction, ownership and operation of NuCube’s technology.”
“NuAlaska’s Alaska-focused approach was also discussed during the Alaska Sustainable Energy Conference, where Matt Larkin and Cristian Rabiti briefed Alaska Gov. Mike Dunleavy on the status of the initiative and received interest and support for the effort,” NuCube Energy said in its July press release.
Larkin, Rabiti and Dunleavy posed for a picture at Dunleavy’s energy conference where they talked about NuAlaska, and the potential for “additional partners.” Perhaps they already had AIDEA in mind.
“Alaska Fund was created to give Alaskans a meaningful opportunity to invest in projects that shape Alaska’s future. NuAlaska brings that mission to life by pairing breakthrough energy technology with a financing model designed to create lasting value for Alaskan communities, investors and the state as a whole,” Larkin was quoted as saying in the July press release from NuCube.
That was three months before AIDEA announced it would chip in $25 million.
NuCube Energy described the AIDEA investment in an October 19 press release issued two days before Dunleavy and AIDEA revealed the plan to Alaskans: “AIDEA is investing directly in NuCube as the anchor investor in the company’s current financing.”
It headlined its press release this way: “State-Backed Investment Provides Direct Financing and Advances its Development of Commercial Microreactors.”
“As our anchor investor, AIDEA gives us a solid capital foundation as we continue towards closing our business combination with Launch Two,” NuCube CEO Cristian Rabiti was quoted as saying.
AIDEA has failed to explain the relationship with Larkin or the Alaska Fund.
On the Dittman Research website, Larkin’s company says, “Our longer-term vision brings data, computing and dependable onsite power together. NuCube-powered facilities are a future opportunity, subject to technology readiness, approvals and demonstrated economics.”
There is nothing on the NuCube Energy website that says how much the Alaska Fund invested in the company, but it is listed as a sponsor.
The AIDEA press release didn’t mention Larkin or Dunleavy’s role in the matter, but it is noteworthy that AIDEA quoted Dunleavy as using some of the exact same words that NuCube had quoted three months earlier.
On July 30, the Idaho company quoted Dunleavy as promoting the venture by Larkin with NuCube, saying: “Alaska has always been a place where innovation is driven by necessity. Advanced nuclear energy has the potential to provide reliable, affordable power to communities and industries across our state, particularly in places where traditional energy solutions are costly or difficult to deliver. I am encouraged to see an Alaska-led effort working to turn that potential into reality.”
On October 21, AIDEA quoted Dunleavy as saying: “Alaska has always been a place where innovation is driven by necessity. Advanced nuclear technologies like NuCube's NuSun reactor have the potential to deliver reliable, affordable power and heat to communities and industries where traditional solutions are costly or impractical. I welcome AIDEA's support for this Alaska-focused effort and look forward to seeing responsible, community-engaged projects move forward that strengthen energy security and create lasting opportunity for Alaskans.”
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Matt Larkin, left, Gov. Mike Dunleavy, and Cristian Rabiti, talked about the NuCube Energy project last spring at his sustainable energy conference. Dunleavy now acts as if AIDEA came up with the idea of putting $25 million into NuCube Energy on its own.