Nano Nuclear Targets 2027 KRONOS Build as Data Center Pipeline Takes Shape

Key Points

• Nano Nuclear targets construction of its 15-megawatt KRONOS microreactor in the second half of 2027, pending NRC construction-permit approval expected after a safety evaluation in September 2027. The company is pursuing EPCM, construction-management and long-lead equipment contracts over the next several quarters.
• The company expects to submit an operating-license application by late 2027 or early 2028, with potential reactor fueling and commissioning in 2029 or 2030. Nano Nuclear is updating its previous $300 million–$350 million capital-cost estimate and assessing tax credits and government or university funding to reduce costs.
• Data-center development could create substantial future demand: Tillman Global Holdings is considering a $100 million investment tied partly to firm reactor orders, with potential targets of 2 gigawatts of nuclear capacity by the mid-2030s and 6 gigawatts by around 2040. Nano Nuclear’s Radnostix and STS acquisitions also expand its fuel-handling, transportation and potential deconversion capabilities.

Nano Nuclear Energy NASDAQ: NNE is advancing preparations for construction of its planned 15-megawatt KRONOS microreactor project at the University of Illinois while pursuing supply-chain contracts, potential project financing and customer development opportunities, Director of Investor Relations and Capital Markets Matt Barry said during a TD Cowen discussion.

Barry said the company expects the Nuclear Regulatory Commission’s safety evaluation of its construction permit application to be completed in September 2027, with approval anticipated afterward. The company is seeking to begin non-nuclear and nuclear construction as soon as the permit is approved, though Barry said there could be a one- to two-month lag.

Construction and supply-chain preparations

To prepare for construction, Nano Nuclear is holding discussions with engineering, procurement and construction management firms, construction partners and vendors. Barry said the company is developing its final construction schedule, expanding its team and conducting request-for-information and request-for-proposal processes.

The company is targeting definitive vendor contracts in the next one to two quarters. Barry said Nano Nuclear could award an EPCM contract in the fourth quarter and could complete its construction-management and general-contractor RFP process, with a potential award, in the first quarter.

On procurement, the company is advancing discussions for key long-lead items, including TRISO fuel, graphite, a reactor pressure vessel, helium circulators and fuel-handling systems. Barry said Nano Nuclear is targeting a fourth-quarter contract for enriched uranium, TRISO fuel and graphite for the University of Illinois project. A reactor pressure vessel contract could follow in the first or second quarter, he said.

“A lot of moving pieces” remain, Barry said, but the company expects the agreements to show its progress toward a target of beginning construction in the second half of 2027.

Operating timeline and capital-cost update

Barry said Nano Nuclear is aiming to submit an operating license application around the end of 2027 or early 2028. Based on that timetable, the company expects an approval in 2029 and could begin fueling and commissioning the reactor in 2029 or 2030.

He added that the NRC’s schedule could potentially move faster, noting that the agency has beaten targets for some other companies’ construction permit applications.

Nano Nuclear has previously estimated gross capital expenditures for the project at $300 million to $350 million. Barry said the company is working with its EPCM partner on an updated estimate, which he described as potentially a Class Five estimate with much of the work completed to Class Four standards. The company could provide an update around year-end or in January, potentially on its February earnings call.

The company is also evaluating potential mechanisms that could reduce the project’s cost, including:

• Investment tax credits of 30% to 40%;
• Potential State of Illinois funding;
• University of Illinois funding; and
• The Department of Energy’s university fuel services program, which may pay for or lease enriched uranium to a university.

Barry said the ownership and operating structure of the Illinois project could affect tax-credit eligibility because the University of Illinois is expected to own and operate the assets and the project is classified as a research reactor. Nano Nuclear is working with legal counsel and University of Illinois tax specialists and may seek a private letter ruling from the Internal Revenue Service, he said.

Data-center development and future reactor orders

Barry also discussed Nano Nuclear’s previously announced non-binding commercial framework with Tillman Global Holdings and its portfolio company, Tillman Digital Gateway. Under that framework, Tillman is considering a $100 million investment in Nano Nuclear, with the majority tied to firm purchase orders and a minority tied to development milestones, Barry said.

Nano Nuclear and Tillman are working on definitive warrant and restricted stock agreements. Barry said Tillman, which is pursuing gigawatt-scale U.S. data-center development, views Nano Nuclear as its preferred nuclear vendor.

The companies disclosed targets of 2 gigawatts of nuclear capacity by the mid-2030s and potentially 6 gigawatts around 2040. Potential milestones before firm purchase orders could include a joint development agreement for an initial site, site characterization and drilling, and initiation of the formal NRC licensing process.

Barry said such steps could occur before the University of Illinois reactor enters service. While successful commissioning of the first unit could accelerate orders, he said the company would not rule out purchase orders before the Illinois project is online.

Regarding KRONOS’ 15-megawatt-electric size, Barry said Nano Nuclear is not currently discussing an uprate, although he said the reactor could potentially reach 20 megawatts electric using HALEU fuel, subject to engineering considerations. He said the smaller design is intended to provide customers with earlier power delivery, less on-site construction and a model that could support repeat manufacturing and deployment.

Acquisitions expand fuel-services capabilities

Barry said Nano Nuclear’s acquisitions of Radnostix and STS support its vertical-integration strategy. The company acquired an NRC-licensed Radnostix facility and related intellectual property and engineering documentation for approximately $13.5 million, according to Barry.

He said the site, located about 30 miles from Urenco’s enrichment facility, could provide future optionality for a deconversion facility and potentially shorten licensing timelines through amendments to an existing NRC license.

STS, meanwhile, provides transportation and coordination services involving enriched fuel, HALEU, TRISO fuel and spent fuel, and also supports reactor refueling work, Barry said. He said the business currently generates about $7 million and has relationships with companies including Orano, NAC International and Holtec.

Nano Nuclear plans to outline potential service-revenue streams as customers own and operate reactor assets. Barry said refueling and transportation services could create additional revenue opportunities over a project’s life, particularly as the company considers deployments involving multiple reactor units.

About Nano Nuclear Energy (NASDAQ:NNE)

Nano Nuclear Energy, Inc is an advanced nuclear energy technology company developing portable microreactors and related nuclear-fuel capabilities. The company's objective is to provide compact, transportable power systems for applications that may not be well served by conventional nuclear plants or electrical grids.

Its principal reactor concepts include ZEUS, a solid-core battery reactor designed for off-grid power generation, and ODIN, a molten-salt reactor concept intended to produce electricity and industrial heat.

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