Company: HVIIR
Filing Date: 2025-12-23
Form Type: S-4
Source: 0001493152-25-029121
Chunk: 329

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-12-23
Form: S-4
Chunk 329
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W-month).

Capacity payments will compensate ONE Nuclear for maintaining generation availability to meet customer peak demand requirements. These payments recognize the resource adequacy value of having reliable, dispatchable generation capacity ready to serve load at all times. Capacity pricing reflects avoided costs including utility capacity charges, backup generation costs, and capacity market clearing prices in organized markets.

Ancillary Revenue Sources

Training and Operations Services.

The U.S. nuclear industry is facing a severe human-capital crisis. After decades of stagnation, more than half of today’s licensed operators are approaching retirement, while the emerging SMR and advanced reactor build-out will require thousands of new, highly trained personnel. Utilities and new developers lack both the institutional knowledge and the training infrastructure to meet this demand, especially under stringent NRC licensing requirements. This creates a multibillion-dollar services opportunity for a scalable, compliant, and high-quality nuclear workforce platform.

ONE Nuclear is exploring a joint
venture with Quadrant Nuclear Industries (“QNI”) to solve this gap by commercializing the Systematic Approach to Training
(“SAT”) pioneered by the U.S. Navy and leveraging one of the only scalable pipelines of nuclear-qualified talent:
U.S. Navy veterans. QNI is led by former Vice Admiral of the U.S. Navy, Dee Mewbourne, and built on Navy nuclear propulsion culture.
This joint venture can transform operator training from a cost center into a revenue-generating, defensible business that de-risks ONE
Nuclear’s own projects while helping to establish the Company as a leader in the emerging global nuclear services market.

Low Carbon Heat.

In a standard power-only model,
up to two-thirds of revenue-generating potential is vented as waste heat. Capturing and utilizing this heat creates a second, potentially
significant revenue stream. Every MW of power generated by advanced nuclear SMRs is expected to generate triple
the amount of thermal energy (“MWt”) relative to electrical energy. As a result, ONE Nuclear believes that potential
revenues from the sale of low carbon heat may rival power sales in some projects. Projected demand for low carbon heat is high; industrial
customers are currently exposed to volatile natural gas prices and aggressive decarbonization mandates, creating a market willing to
sign long-term, fixed-price “Steam Purchase Agreements” (SPAs).

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The U.S. industrial heat market is massive and almost entirely dependent on fossil fuels, making it a prime target for disruption. According to estimates by the U.S. Energy Information Administration, the industrial sector accounts for ~