Deep Isolation Nuclear Inc., a nuclear technology startup based in Berkeley, California, has raised US$33 million through a private placement to further its nuclear waste storage technology.

The company is developing a system that utilizes oil and gas fracking techniques to store spent nuclear fuel deep underground. Current nuclear waste storage solutions often involve surface sites near reactors, raising safety and security concerns.

Investors in the funding round include NAC International and new participant Segra Capital Management.

The funding will support testing of a full-scale version of its borehole storage system. The planned full-scale test, set for early 2027, will use canisters designed to hold spent fuel rods.

Deep Isolation’s method is proposed to be less expensive than traditional centralized waste repositories. CEO Rod Baltzer noted that there is international interest, especially from Eastern Europe. This interest could lead to future customers following testing and regulatory approvals.

The company also announced a merger with US-based blank check company Aspen-1 Acquisition Inc., facilitating its transition to a publicly traded entity in the coming months.