Episode Summary: Currents Ep342 – Meeting Baseload Demand with Nuclear and Gas
Date: April 2, 2026
Host: Todd Alexander (A)
Guest: Richard Taylor (B), CEO of One Nuclear
Overview
This episode of the Currents podcast dives into the challenge of meeting growing US baseload electricity demand, specifically for data centers and the digital economy, and how One Nuclear aims to address it with a hybrid natural gas and small modular reactor (SMR) nuclear strategy. Richard Taylor, CEO of One Nuclear, explains their business model, technology choices, and their plan to go public via a SPAC merger. The discussion covers the nuclear renaissance, the rationale behind hybrid plant development, project risk management, financing, cost comparisons, community engagement, and the company's capital markets strategy.
Key Discussion Points & Insights
1. The Critical Need for Reliable Baseload Power
[00:51 – 06:18]
- The main bottleneck for the US digital economy is "the acute shortage of reliable baseload electricity that's required by hyperscalers and data center operators."
- Demand is expected to grow massively, requiring 670 GW of additional capacity by 2050, with 300 GW needing to come from nuclear.
- Memorable stat: "That's over 20 times the energy consumed by New York City... four times the current nuclear capacity." — Richard Taylor [01:29]
- One Nuclear’s approach:
- Not inventing new nuclear technology or operating as a traditional utility.
- Hybrid Gas to Nuclear Strategy: Start with natural gas generation for immediate needs and cash flow, then transition to SMRs in the 2030s.
- Focus on developing, owning, and operating assets for long-term alignment with partners, communities, and investors.
2. Why the Hybrid Model?
[02:40 – 06:18]
- Customers can’t wait a decade for nuclear plants alone.
- Gas provides a “revenue bridge” funding and de-risking the nuclear transition.
- Multi-technology and multi-site strategy for flexibility and resilience.
- Partnerships highlighted: Rolls Royce (nuclear and gas gensets), Black & Veatch (engineering), FutureWorks (program management), and Quadrant Nuclear Industries (operations with inspiration from US Navy nuclear practices).
3. Nuclear’s Rocky History and Why Now?
[06:56 – 08:40]
- Legacy Problems: Extended periods of capital outlay without revenue, making traditional nuclear hard to finance.
- “The traditional model can fail because it has a binary outcome. Investors must have to fund billions… before seeing a single dollar of return.” — Richard Taylor [07:10]
- One Nuclear Solution: Use gas to generate early free cash flow, self-finance SMR licensing and early operations, and remain solvent even with regulatory delays.
- Focuses on the latest SMR technology for improved standardization, safety, and modular construction.
4. Co-locating Gas and SMRs with Data Centers
[08:41 – 10:46]
- Ideal sites are ~1,000 acres, near urban populations, with water and fiber connections.
- Sites are chosen for long-term use (60–80 years).
- Hybrid facilities (gas and nuclear) aim to supply power directly (“behind the meter”) to data centers, reducing strain and delay on the public grid.
5. Gas Turbine Supply Chain Solutions
[10:47 – 12:24]
- Traditional gas turbines have a 5–6 year wait.
- One Nuclear focuses on reciprocating engine gensets (MTU by Rolls Royce), which are more readily available and offer operational redundancy.
- "We need a lot of them ... but because they're individual units, the availability is much easier to manage." — Richard Taylor [11:33]
6. Community Reception and Overcoming NIMBYism
[12:24 – 15:16]
- Contrary to expectations, local communities and states are mostly welcoming ("much less nimbyism than we expected").
- Many states conduct surveys showing a prioritized list of communities wanting nuclear due to jobs and economic benefits.
- Building trust by emphasizing long-term company-community alignment, transparency, and local engagement.
- Advisory board includes Prof. Rob Hayes (“Professor TikTok”), leveraging social media to dispel myths and improve public understanding.
7. Cost Competitiveness of Nuclear vs Gas and Solar
[15:16 – 16:26]
- Nuclear’s levelized cost of electricity (LCOE) is "very competitive" with gas turbines and reciprocating engines.
- “The capital costs are very different. The operating costs are different. And ... the costs can be very competitive.” — Richard Taylor [15:56]
- Reciprocating engine gensets are cheaper than turbines with slightly higher O&M costs, but overall LCOE is similar.
8. Managing Construction Risk and Project Delays
[16:27 – 19:51]
- Three-pronged approach: Risk transfer, risk sharing, risk mitigation.
- Preference for brownfield (retired coal/industrial) sites to reduce cost and permitting risk.
- Use of proven/factory-built modules and thorough front-end engineering before major capital deployment.
- Hybrid EPC contract model with transparent accounting and owner audit rights, avoiding the “illusion of risk transfer.”
- “For a first of a kind project, if we try to transfer all construction risk to a contractor, it creates an unmanageable liability ... the only viable option is bankruptcy.” — Richard Taylor [18:27]
- Lessons from past project failures: Avoid incomplete designs, immature supply chains, and poor change management; structure risk-sharing power purchase agreements.
9. Financing & Bankability
[19:52 – 21:40]
- Projects use a mix of debt and equity, with a leading role for DOE loan guarantees and federal programs.
- “SMR projects benefit from an investment tax credit ... based on the full cost of the project and they're transferable. So bankability is improved by the technology...” — Richard Taylor [20:53]
- Dedicated delivery platform seeks to break down capital-at-risk into quantifiable, investable components.
10. Going Public via SPAC
[21:41 – 23:22]
- Chose a de-SPAC (merger with Hennessy7) for efficiency and certainty accessing capital markets.
- The hybrid gas-nuclear approach allows cash flow by 2028, supporting SMR deployment by 2034.
- “We're not just building reactors. We're building a diversified, future-proof energy portfolio that supports the US as a global leader in energy security and AI innovation.” — Richard Taylor [22:41]
Notable Quotes & Memorable Moments
- “Nuclear energy will be the cheapest and cleanest technology to provide reliable baseload energy in the long term.” — Richard Taylor [02:02]
- “We're not a real estate company or a data center developer. We focus purely on energy.” — Richard Taylor [03:55]
- On NIMBYism: “It surprised us how receptive people have been to an energy facility coming to their area. ... There's much less nimbyism than we expected.” — Richard Taylor [12:46]
- “Our approach is building credibility and trust and anchoring that in transforming nuclear development from being a science project into a pragmatic, predictable, cash flow focused infrastructure platform.” — Richard Taylor [13:38]
- On risk management: “A fundamental flaw in a fixed price EPC model is the illusion of risk transfer. ... We're intending to use hybrid target cost, fiat risk contract models and open book accounting and owner audit rights to catch issues early.” — Richard Taylor [17:51]
- “The nuclear story is just beginning ... we have the partners and the roadmap to lead the story for decades to come.” — Richard Taylor [22:57]
Timestamps for Major Segments
- Introduction & Problem Statement: 00:51 – 06:18
- Hybrid Business Model: 02:40 – 06:18
- The Case for Nuclear’s Renaissance: 06:56 – 08:40
- Co-location & Siting: 08:41 – 10:46
- Gas Technology Choices: 10:47 – 12:24
- Community Relations: 12:24 – 15:16
- Cost Dynamics: 15:16 – 16:26
- Risk Management & Lessons Learned: 16:27 – 19:51
- Financing & Bankability: 19:52 – 21:40
- SPAC Strategy & Equity Plans: 21:41 – 23:22
Final Thoughts
One Nuclear positions itself at the forefront of the evolving US baseload power sector with a pragmatic, hybrid strategy leveraging immediate gas-fired generation and a long-term play on SMR nuclear. Their approach blends financial discipline, technical innovation, risk management, and strong community ties, aiming to both solve an urgent infrastructure need and deliver sustained returns for stakeholders. The planned public listing via SPAC reflects confidence in both their model and the broader nuclear renaissance as the US faces the twin challenges of electrification and AI-driven data demand.
