Company: HVIIR
Filing Date: 2025-12-23
Form Type: S-4
Source: 0001493152-25-029121
Chunk: 344

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-12-23
Form: S-4
Chunk 344
---
 to be delivered in alignment with the 24-36 month construction timelines of data centers. |

| (2) | Reliability:                                                                                  
 The customer is insulated from regional grid failures, transmission congestion, and frequency 
 instability.                                                                                  |

| (3) | Cost                                                                                         
 Savings: By avoiding the grid, customers avoid escalating transmission and distribution      
 (“T&D”) charges, congestion pricing, and ancillary service fees. FTI                         
 Consulting estimates BTM arrangements provide transmission and distribution savings of $7-12 
 per MWh.                                                                                     |

Behind-the-meter arrangements bypass these bottlenecks while delivering material cost savings. PJM capacity prices have surged from $29/MW-day in 2024/25 to $329/MW-day in 2026/27 (PJM, 2025), a 10x increase that BTM arrangements can avoid. A Bloom Energy survey projects that 38% of data center facilities will use onsite generation as primary power by 2030, up from 13% in 2024 (CoreSite).

The Nuclear Energy Institute’s June 2024 analysis concluded that colocation “can significantly reduce project costs and delays by eliminating the need for new transmission infrastructure and grid interconnection studies.” (Utility Drive). Nuclear plants’ reliability, 92%+ capacity factors, and 18-24 month refueling cycles match data center operational requirements. Constellation estimated that co-locating data centers at Illinois nuclear plants could reduce wind/solar curtailment by 80%.

| 224 |

Nuclear Energy as Critical Firm-Power Infrastructure

Federal and state policy momentum behind nuclear energy has accelerated meaningfully. The Inflation Reduction Act created the first-ever production tax credit for new nuclear and contributed to expand DOE Loan Programs Office capacity to over $400 billion, enabling financing support for next-generation reactor development. More than a dozen states have taken steps to streamline nuclear siting or reconsider legacy moratoria, while the U.S. Department of Energy estimates that up to 200 GW of new nuclear capacity may be required by 2050 to meet national decarbonization goals (DOE Pathways to Commercial Liftoff: Advanced Nuclear, 2023).

We
believe SMRs are fully aligned with this strategy due to their modular fabrication, standardized designs, enhanced passive
safety systems, and ability to scale capacity in discrete increments with customer demand. Their smaller land footprint, factory-built
module delivery, and integration compatibility with gas, hydrogen, district heat, or industrial processes make SMRs increasingly