Energy co. to build 30 micro-nuclear reactors in Texas to meet rising demand

going nuclear

D.C.-based Last Energy plans to bring 30 micro-nuclear reactors in Texas online within the next two years. Rending courtesy Last Energy.

A Washington, D.C.-based developer of micro-nuclear technology plans to build 30 micro-nuclear reactors near Abilene to address the rising demand for electricity to operate data centers across Texas.

The company, Last Energy, is seeking permission from the Electric Reliability Council of Texas (ERCOT) and the U.S. Nuclear Regulatory Commission to build the microreactors on a more than 200-acre site in Haskell County, about 60 miles north of Abilene.

The privately financed microreactors are expected to go online within roughly two years. They would be connected to ERCOT’s power grid, which serves the bulk of Texas.

“Texas is America’s undisputed energy leader, but skyrocketing population growth and data center development is forcing policymakers, customers, and energy providers to embrace new technologies,” says Bret Kugelmass, founder and CEO of Last Energy.

“Nuclear power is the most effective way to meet Texas’ demand, but our solution—plug-and-play microreactors, designed for scalability and siting flexibility—is the best way to meet it quickly,” Kugelmass adds. “Texas is a state that recognizes energy is a precondition for prosperity, and Last Energy is excited to contribute to that mission.”

Texas is home to more than 340 data centers, according to Perceptive Power Infrastructure. These centers consume nearly 8 gigawatts of power and make up 9 percent of the state’s power demand.

Data centers are one of the most energy-intensive building types, says to the U.S. Department of Energy, and account for approximately 2 percent of the total U.S. electricity use.

Microreactors are 100 to 1,000 times smaller than conventional nuclear reactors, according to the Idaho National Laboratory. Yet each Last Energy microreactor can produce 20 megawatts of thermal energy.

Before announcing the 30 proposed microreactors to be located near Abilene, Last Energy built two full-scale prototypes in Texas in tandem with manufacturing partners. The company has also held demonstration events in Texas, including at CERAWeek 2024 in Houston. Last Energy, founded in 2019, is a founding member of the Texas Nuclear Alliance.

“Texas is the energy capital of America, and we are working to be No. 1 in advanced nuclear power,” Governor Greg Abbott said in a statement. “Last Energy’s microreactor project in Haskell County will help fulfill the state’s growing data center demand. Texas must become a national leader in advanced nuclear energy. By working together with industry leaders like Last Energy, we will usher in a nuclear power renaissance in the United States.”

Nuclear energy is not a major source of power in Texas. In 2023, the state’s two nuclear power plants generated about 7% of the state’s electricity, according to the U.S. Energy Information Administration. Texas gains most of its electricity from natural gas, coal, wind, and solar.

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A new joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants for the ERCOT and PJM Interconnection grids. Photo via Getty Images.

NRG Energy forms joint venture to build power plants for ERCOT and AI-driven demand

teaming up

Houston-based power provider NRG Energy Inc. has formed a joint venture with two other companies to meet escalating demand for electricity to fuel the rise of data centers and the evolution of generative AI.

NRG’s partners in the joint venture are GE Vernova, a provider of renewable energy equipment and services, and TIC – The Industrial Co., a subsidiary of construction and engineering company Kiewit.

“The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation,” Robert Gaudette, head of NRG Business and Wholesale Operations, said in a news release. “Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers’ generation needs.”

Initially, the joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants, which uses a combination of natural gas and steam turbines that produce additional electricity from natural gas waste. Electricity from these projects will be produced for power grids operated by the Electric Reliability Council of Texas (ERCOT) and PJM Interconnection. The projects are scheduled to come online from 2029 through 2032.

The joint venture says the model it’s developing for these four projects is “replicable and scalable,” with the potential for expansion across the U.S.

The company is also developing a new 721-megawatt natural gas combined-cycle unit at its Cedar Bayou plant in Baytown, Texas. Read more here.

A new coalition of energy leaders wants to “take the Texas grid from good to great." Photo via Getty Images

Houston energy leaders form new coalition to improve Texas power grid

grid tech

A Houston-based coalition that launched this month aims to educate Texas officials about technology designed to shore up the state’s power grid.

The public-private Texas Reliability Coalition says it will promote utility-scale microgrid technology geared toward strengthening the resilience and reliability of the Texas power grid, particularly during extreme weather.

A utility-operated microgrid is a group of interconnected power loads and distributed energy sources that can operate in tandem with or apart from regular power grids, such as the grid run by the Electric Reliability Council of Texas (ERCOT). Legislation passed in 2023 enables the use of utility-scale microgrid technology in Texas’ deregulated energy market, according to the coalition.

John Elder, executive director of the coalition, says that with the legal framework now in place, the Public Utility Commission of Texas and ERCOT need to create rules to establish the Texas marketplace for microgrid technology. The goal, he says, is to “take the Texas grid from good to great” by installing microgrid technology, improving the infrastructure, and strengthening the system — all targeted toward meeting power needs during extreme weather and amid growing demand.

Houston-based CenterPoint Energy will test the utility-scale microgrid technology being promoted by the coalition. In a January 31 filing with the Public Utility Commission, CenterPoint says microgrid technology will be featured in a $36.5 million pilot program that’ll set up an estimated three to five microgrids in the company’s service area. The pilot program is slated to last from 2026 to 2028.

In the public affairs arena, five Houston executives are leading the new reliability commission’s microgrid initiative.

Elder, one of the coalition’s founding members, is president and CEO of Houston-based Acclaim Energy. Other founders include Ember Real Estate Investment & Development, Park Eight Development, and PowerSecure. Ember and Park Eight are based in Houston. Durham, North Carolina-based PowerSecure, which produces microgrid technology, is a subsidiary of energy provider Southern Co.

Aside from Elder, members of the coalition’s board are:

Stewart Black, board secretary of the coalition and vice president of Acclaim Energy’s midstream division
Todd Burrer, president of municipal utility districts at Inframark.
Harry Masterson, managing principal of Ember
Martin Narendorf, former vice president at CenterPoint Energy.

Ørsted, which maintains offices in Houston and Austin, just flipped the switch on its 468-megawatt Mockingbird Solar Center in Lamar County, a project that also established a nearby nature preserve. Photo courtesy of Ørsted

Danish renewable company’s largest solar project to power Texas grid, preserve prairie habitat

seeds planted

The largest solar project in the global portfolio of Danish renewable energy company Ørsted is now supplying power to the Electric Reliability Council of Texas (ERCOT) grid.

Ørsted, which maintains offices in Houston and Austin, just flipped the switch on its 468-megawatt Mockingbird Solar Center in Lamar County, which is northeast of Dallas-Fort Worth and directly south of the Texas-Oklahoma border. The $500 million project can produce enough power for 80,000 homes and businesses.

ERCOT provides power to more than 25 million Texas customers, representing 90 percent of the state’s electric load.

In conjunction with the solar project, Ørsted donated 953 acres to The Nature Conservancy to establish the Smiley Meadow Preserve. This area, adjacent to the Mockingbird facility, protects a tallgrass prairie habitat featuring more than 400 species of grasses and wildflowers. Accounting for land already owned by the conservancy, Smiley Meadow exceeds 1,000 acres.

“Through the power of partnership, Ørsted has helped The Nature Conservancy protect an irreplaceable landscape that might otherwise have been lost to development,” Suzanne Scott, The Nature Conservancy’s Texas state director, says in a news release.

Mockingbird Solar Center is part of Ørsted’s $20 billion investment in U.S. energy generation. With this project now online, Ørsted owns a portfolio of more than six gigawatts of onshore wind, solar, and battery storage projects that either are operating or are being built.

NRG and Renew Home expect the virtual power plant program to arrive for Texas customers in spring of 2025. Photo via Getty Images

NRG Energy partners to launch Texas' largest AI-powered virtual power plant

dream team

NRG Energy is partnering with a virtual power plant company to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 in an overall effort to improve the Texas grid's resiliency and help households manage and lower their energy costs.

Renew Home will create a nearly 1 gigawatt AI-powered VPP, which will be enabled by Google Cloud technology and be the largest AI-enabled VPP in Texas. NRG and Renew Home expect the VPP program to arrive for Texas customers in spring of 2025.

A 1 gigawatt VPP can deliver a capacity that is equivalent to 200,000 homes during peak demand times. NRG and Renew Home plan to offer Vivint and Nest smart thermostats, which will include professional installation at no cost to eligible customers as part of the goal to build the VPP.

The advanced thermostats can make automatic HVAC adjustments that can help customers shift their energy use to times when electricity is less expensive, and cleaner. The program will combine smart devices, energy intelligence, and AI. The companies expect to add devices like batteries and electric vehicles to the VPP.

“By partnering with industry leaders like Renew Home and Google Cloud, we are set to deliver cutting-edge, AI-driven solutions that will bolster grid resilience and contribute to a more sustainable future,” Rasesh Patel, president of NRG Consumer, says in a news release. “We are excited about the transformative impact this collaboration will have on our customers and the broader energy landscape.”

NRG will also be utilizing the multi-year technology transformation with Google Cloud. NRG will be able to better predict weather conditions, forecast wind and solar generation output, and create predictive pricing models through the use of Google Cloud's data, analytics, and AI technology.

"As we move toward a more sustainable future and face increasing energy demands, Google Cloud recognizes the importance of partnering with innovators like NRG and Renew Home to help transform the consumer energy experience with AI and the best of Google Cloud,” Michael Clark, president - North America at Google Cloud, adds. "Our collaboration will help Texas meet its growing energy demands, and also empower consumers to get more from their energy, smart home, and essential home services in the future.”

Texas reached an unprecedented demand surge of 85 gigawatts in 2023.

“As rapid population growth and weather events create new challenges for meeting demand in ERCOT, VPPs can deliver a reliable, flexible and dispatchable energy resource,” Renew Home CEO Ben Brown continues. “NRG’s commitment to creating a more resilient and sustainable energy future while also making electricity bills more affordable makes them an ideal partner for co-developing this unique VPP program. This initiative raises the bar for future-proofing our electricity infrastructure and delivering cost savings to customers.”

At the GHP's Future of Global Energy event, panelists discussed the opportunities for scale in Houston. Photo by Natalie Harms/EnergyCapital

Panel: Houston's access to talent, strong network drives it as a city for scaling energy transition business

thought leadership

Time is of the essence when it comes to scaling energy transition businesses in Houston — at least that's what a group of panelists agreed on at a recent event from the Greater Houston Partnership.

The GHP's Future of Global Energy event, which took place on October 9, featured a panel entitled, "Epicenter of Energy Innovation for Scale" and was moderated by Barbara Burger, former president of Chevron Technology Ventures and current startup adviser and mentor. Joining Burger was Kristina Lund, president of Pattern Energy; Brooke Vandygriff, COO of HIF Global: and Bud Vos, CEO of MetOx International. All three companies have and plan to continue scaling in Houston.

The conversation covered some of the unique achievements each of the panelists' companies have reached recently, including HIF Global's millions raised to create e-fuels, MetOx's $25 million series B extension, and Pattern Energy's Southern Spirit project scoring $360 million from the Department of Energy to connect Texas's ERCOT to other states.

After covering the momentum each company has right now, Burger asked each of the panelists why Houston makes sense as a place for scaling their energy transition business.

"The U.S. has a great regulatory environment, ERCOT specifically. Texas is in the business of permitting projects," Vandygriff says. "If you take the right steps, you can get your permits. They are very responsive to attracting and recruiting businesses here."

Also attractive is Houston's existing energy workforce. Even when it comes to technology roles, Houston delivers.

"There is great tech talent here," Vos says, pointing out that Bill Gates called Houston the "Silicon Valley of energy" when he was here for CERAWeek. "I think there's an element of that that's very true. There's a lot innovation, there's a lot of creative thinking, and being able to come out of these businesses with huge momentum then go into startups and innovate is a culture change that I think Houston is going through."

The panelists, most of whom are not Houston natives, agreed in a welcoming culture within the business sector.

"I really think that Houston offers great hospitality, and the energy networks here are so strong," Lund says. "You feel the energy of the city."

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Tesla sales tumble 13% as Musk backlash, competition and aging lineup turn off buyers

Tesla Talk

Tesla sales fell 13% in the first three months of the year, another sign that Elon Musk’s once high-flying electric car company is struggling to attract buyers.

The double-digit drop is likely due to a combination of factors, including its aging lineup, competition from rivals and a backlash from Musk’s embrace of right wing politics. It also is a warning that the company’s first-quarter earnings report later this month could disappoint investors.

Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives.

Analysts polled by FactSet expected much higher deliveries of 408,000.

Dan Ives of Wedbush said in a note to clients that Tesla is seeing soft demand in the United States and China, as well as facing pressure in Europe.

“The brand crisis issues are clearly having a negative impact on Tesla...there is no debate,” he said.

Ives said that Wall Street financial analysts knew the first-quarter figures were likely to be bad, but that it was even worse than expected, calling them a “disaster on every metric.”

The sales drop came three weeks after President Donald Trump held an extraordinary press conference outside the White House in which he praised Tesla, blasted boycotts against the company and bought a Tesla himself while TV cameras rolled in an effort to help lift sales.

“I don’t like what’s happening to you,” said Trump, before slipping into a red Model S and exclaiming, “Wow. That’s beautiful.”

After falling as much as 6% in early Wednesday, Tesla stock shot up more than 5% in afternoon trading after a report from Politico, citing anonymous sources, that Musk may soon step down from leadership of his Department of Government Efficiency, the cost-cutting group that has led to tens of thousands of federal workers losing their jobs.

Tesla investors have complained the DOGE work has diverted Musk's focus from Tesla, where he is the CEO. On Tuesday, New York City's comptroller overseeing pension funds down $300 million this year on Tesla holdings called for a lawsuit accusing a distracted Musk of "driving Tesla off a financial cliff.”

Tesla’s stock has plunged by roughly half since hitting a mid-December record as expectations of a lighter regulatory touch and big profits with Donald Trump as president were replaced by fear that the boycott of Musk's cars and other problems could hit the company hard.

Analysts are still not sure exactly how much the fall in sales is due to the protests or other factors. Electric car sales have been sluggish in general, and Tesla in particular is suffering as car buyers hold off from buying its bestselling Model Y while waiting for an updated version.

Still, even bullish financial analysts who earlier downplayed the backlash to Musk’s polarizing political stances are acknowledging that it is hurting the company, something that Musk also recently acknowledged.

“This is a very expensive job,” Musk said at a Wisconsin rally on Sunday, referring to his DOGE role. “My Tesla stock and the stock of everyone who holds Tesla has gone roughly in half."

The protests come as the Austin, Texas electric vehicle maker faces fierce competition from other EV makers offering vastly improved models, including those of BYD. The Chinese EV giant unveiled in March a technology that allows it cars to charge up in just five to eight minutes.

Tesla is expected to report earnings of 48 cents per share for the first quarter later this month, up 7% from a year earlier, according to a survey of financial analysts who the car company by research firm FactSet.

Nearly all of Tesla’s sales in the quarter came from the smaller and less-expensive Models 3 and Y, with the company selling less than 13,000 more expensive models, which include X and S as well as the Cybertruck.

Houston Energy and Climate Startup Week announces 2025 dates, key events

comeback tour

Six local organizations focused on the energy transition have teamed up to bring back Houston Energy and Climate Startup Week.

The second annual event will take place Sept. 15-19, according to an announcement. The Ion District will host many of the week's events.

Houston Energy and Climate Startup Week was founded in 2024 by Rice Alliance for Technology and Entrepreneurship, Halliburton Labs, Greentown Labs, Houston Energy Transition Initiative (HETI), Digital Wildcatters and Activate.

“Houston Energy and Climate Startup Week was created to answer a fundamental question: Can we achieve more by working together than we can alone?” Jane Stricker, senior vice president at the Greater Houston Partnership and executive director of HETI, said in the release.

So far, events for the 2025 Houston Energy and Climate Startup Week include an introduction to climatetech accelerator Activate's latest cohort, the Rice Alliance Energy Tech Venture Forum, a showcase from Greentown Labs' ACCEL cohort, and Halliburton Labs Pitch Day.

Houston organizations New Climate Ventures and Digital Wildcatters, along with Global Corporate Venturing, are slated to offer programming again in 2025. And new partners, Avatar Innovations and Decarbonization Partners, are slated to introduce events. Find a full schedule here.

Other organizations can begin entering calendar submissions starting in May, according to the release.

Last year, Houston Energy and Climate Startup Week welcomed more than 2,000 attendees, investors and industry leaders to more than 30 events. It featured more than 100 speakers and showcased more than 125 startups.

"In 2024, we set out to build something with lasting impact—rooted in the ingenuity of Houston’s technologists and founders. Thanks to a collaborative effort across industry, academia, and startups, we’ve only just begun to showcase Houston’s strengths and invite others to be part of this movement," Stricker added in the release. "We can’t wait to see the city rise to the occasion again in 2025.”

Dow aims to power Texas manufacturing complex with next-gen nuclear reactors

Clean Energy

Dow, a major producer of chemicals and plastics, wants to use next-generation nuclear reactors for clean power and steam at a Texas manufacturing complex instead of natural gas.

Dow's subsidiary, Long Mott Energy, applied Monday to the U.S. Nuclear Regulatory Commission for a construction permit. It said the project with X-energy, an advanced nuclear reactor and fuel company, would nearly eliminate the emissions associated with power and steam generation at its plant in Seadrift, Texas, avoiding roughly 500,000 metric tons of planet-warming greenhouse gas emissions annually.

If built and operated as planned, it would be the first U.S. commercial advanced nuclear power plant for an industrial site, according to the NRC.

For many, nuclear power is emerging as an answer to meet a soaring demand for electricity nationwide, driven by the expansion of data centers and artificial intelligence, manufacturing and electrification, and to stave off the worst effects of a warming planet. However, there are safety and security concerns, the Union of Concerned Scientists cautions. The question of how to store hazardous nuclear waste in the U.S. is unresolved, too.

Dow wants four of X-energy's advanced small modular reactors, the Xe-100. Combined, those could supply up to 320 megawatts of electricity or 800 megawatts of thermal power. X-energy CEO J. Clay Sell said the project would demonstrate how new nuclear technology can meet the massive growth in electricity demand.

The Seadrift manufacturing complex, at about 4,700 acres, has eight production plants owned by Dow and one owned by Braskem. There, Dow makes plastics for a variety of uses including food and beverage packaging and wire and cable insulation, as well as glycols for antifreeze, polyester fabrics and bottles, and oxide derivatives for health and beauty products.

Edward Stones, the business vice president of energy and climate at Dow, said submitting the permit application is an important next step in expanding access to safe, clean, reliable, cost-competitive nuclear energy in the United States. The project is supported by the Department of Energy’s Advanced Reactor Demonstration Program.

The NRC expects the review to take three years or less. If a permit is issued, construction could begin at the end of this decade, so the reactors would be ready early in the 2030s, as the natural gas-fired equipment is retired.

A total of four applicants have asked the NRC for construction permits for advanced nuclear reactors. The NRC issued a permit to Abilene Christian University for a research reactor and to Kairos Power for one reactor and two reactor test versions of that company's design. It's reviewing an application by Bill Gates and his energy company, TerraPower, to build an advanced reactor in Wyoming.

X-energy is also collaborating with Amazon to bring more than 5 gigawatts of new nuclear power projects online across the United States by 2039, beginning in Washington state. Amazon and other tech giants have committed to using renewable energy to meet the surging demand from data centers and artificial intelligence and address climate change.

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