the view from heti

5 reasons Texas energy leaders are excited about sustainable nuclear energy

Texas leaders discussed the opportunity for nuclear energy. Photo via htxenergytransition.org

The University of Texas at Austin Cockrell School of Engineering hosted an event on August 16th called Advanced Nuclear Technology in Texas, where Dow and X-Energy CEOs joined Texas Governor Greg Abbott for a discussion about why the Texas Gulf Coast is quickly becoming the epicenter for nuclear with the recent announcement about Dow and X-Energy. Dow and X-energy are combining efforts to deploy the first advanced small modular nuclear reactor at industrial site under DOE’s Advanced Reactor Demonstration Program

“Texas is the energy capital of the world, but more important is what we are doing with that energy and what it means for our future in the state of Texas,” said Abbott. “Very important to our state is how we use energy to generate power for our grid. For a state that continues to grow massively, we are at the height of our production during the day, and we generate more power than California and New York combined. But we need more dispatchable power generation. One thing we are looking at with a keen eye is the ability to expand our capabilities with regard to nuclear generated power.”

The Governor announced a directive to the Public Utilities Commission of Texas to formulate a workgroup that will make recommendations that aim to propel Texas as a national leader in advanced nuclear energy.

According to the directive, to maximize power grid reliability, the group will work to understand Texas’s role in deploying and using advanced reactors, consider potential financial incentives available, determine nuclear-specific changes needed in the Electric Reliability Council of Texas (ERCOT) market, identify any federal or state regulatory hurdles to development, and analyze how Texas can streamline and speed up advanced reactor construction permitting.

Below are five key takeaways about the project and why energy experts are excited about advanced nuclear energy:

  • Advanced SMR Nuclear Project for Carbon-Free Energy: Dow, a global materials science leader, has partnered with X-energy to establish an advanced small modular reactor (SMR) nuclear project at its Seadrift Operations site in Texas. The project aims to provide safe, reliable, and zero carbon emissions power and steam to replace aging energy assets.
  • Decarbonization and Emission Reduction: This collaboration is set to significantly reduce the Seadrift site’s emissions by approximately 440,000 metric tons of CO2 equivalent per year. By adopting advanced nuclear technology, Dow is making a notable contribution to decarbonizing its manufacturing processes and improving environmental sustainability.
  • Grid Stability and Reliability: The advanced nuclear technology offers enhanced power and steam reliability, ensuring a stable energy supply for Dow’s Seadrift site. This is crucial for maintaining uninterrupted manufacturing operations and contributing to overall electric grid stability.
  • Texas Gulf Coast Energy Hub: Texas, as the energy capital of the world, has been chosen as the location for this groundbreaking project. This selection underscores Texas’ exceptional business climate, innovation history, and commitment to leading the energy transition. The project builds upon Texas’ position as a global energy leader.
  • Economic Growth and Job Opportunities: The SMR nuclear project promises to bring economic growth to the Texas Gulf Coast. It is expected to create new jobs, provide economic opportunities, and strengthen the local economy. By embracing innovative and sustainable energy solutions, Dow and X-energy are driving both industrial advancement and community prosperity.
———

This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

Trending News

 

A View From HETI

Lydian Energy has secured financing for three battery storage system projects in Texas. Photo via Getty Images.

The Electricity Reliability Council of Texas’ grid will get a boost courtesy of Lydian Energy.

The D.C.-based company announced the successful financial close of its first institutional project financing totaling $233 million, backed by ING Group and KeyBank. The financing will support three battery energy storage system (BESS) projects in Texas.

Lydian is an independent power producer that specializes in the development, construction and operation of utility-scale solar and battery energy storage projects. The company reports that it plans to add 550 megawatts of energy—which can power approximately 412,500 homes—to the Texas grid administered by ERCOT.

“This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve,” Emre Ersenkal, CEO at Lydian Energy, said in a news release.

The projects include:

Pintail 

  • Located in San Patricio county
  • 200 megawatts
  • Backed by ING

Crane

  • Located in Crane county
  • 200 megawatts
  • Backed by ING

Headcamp

  • Located in Pecos county
  • 150 megawatts
  • Backed by KeyBank

ING served as the lender for Pintail and Crane projects valued at a combined total of approximately $139 million.

KeyBank provided a $94 million financing package for the Headcamp project. KeyBanc Capital Markets also structured the financing package for Headcamp.

The three projects are being developed under Excelsior Energy Capital’s Fund II. Lydian’s current portfolio comprises 20 solar and storage projects, totaling 4.7 gigawatts of capacity.

“Our support of Lydian’s portfolio reflects ING’s focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power,” Sven Wellock, managing director and head of energy–renewables and power at ING, said in the release. “Battery storage plays a central role in supporting grid resilience, and we’re pleased to back a platform with strong fundamentals and a clear execution path.”

The facilities are expected to be placed in service by Q4 2025. Lydian is also pursuing additional financing for further projects, which are expected to commence construction by the end of 2025.

“These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets,” Anne Marie Denman, co-founding partner at Excelsior Energy Capital and chair of the board at Lydian Energy, added in the news release. “We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy.”

Trending News