Subsequent license renewals for plants, power uprates, and investments in aging equipment should be generating a surge in orders of systems and equipment. But capital planning and budget approvals are years-long processes. The uncertain political landscape slows orders down further as plants wait for the approval of Inflation Reduction Act tax credits.
For new nuclear providers, progress has been uneven. Acquiring customers has proven to be difficult, and the depletion of Department of Energy funding programs like the Advanced Reactor Demonstration Program has led to interruptions in design development, delaying orders for hardware.
The nuclear supply chain
Over the past three decades, the supply chain has diminished as major commercial original equipment manufacturers (OEMs) have left the nuclear industry. Third-party suppliers like Paragon play a vital role in bringing OEMs back into the sector through our NQA-1 program while also assuming project risks. For example, Paragon’s partnership with JCI (Johnson Controls)—one of the world’s largest HVAC providers—ensures the supply of critical chillers to nuclear stations.
Certainty and capital investment
With large tech companies increasing energy demand and driving long-term nuclear power purchase agreements, the market is beginning to see greater certainty. This stability supports the operation of existing plants and investment in new nuclear. As a result, investments led by tech giants and private equity are finally translating into tangible orders.
This shift enables suppliers to secure capital from their boards, banks, and investors. Paragon is currently securing $50 million in capital to invest in the people and facility upgrades necessary for our committed orders and expected growth. Access to capital is critical for the nuclear supply chain to scale up and support the industry’s growth.
It’s time the nuclear industry’s momentum turned into action. The future is nuclear, and it’s our job to power it.
Doug VanTassell (DVanTassell@ParagonES.com) founded Paragon in 2017 through the acquisition of ATC Nuclear. His nuclear career spans more than 35 years in various leadership roles across several leading industry suppliers.
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