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Policy adviser tapped to lead ‘nuclear renaissance’ in Texas

going nuclear

Jarred Shaffer has been named director of the new Texas Advanced Nuclear Energy Office. Photo via LinkedIn.

As Texas places a $350 million bet on nuclear energy, a budget and policy adviser for Gov. Greg Abbott has been tapped to head the newly created Texas Advanced Nuclear Energy Office.

Jarred Shaffer is now director of the nuclear energy office, which administers the $350 million Texas Advanced Nuclear Development Fund. The fund will distribute grants earmarked for the development of more nuclear reactors in Texas.

Abbott said Shaffer’s expertise in energy will help Texas streamline nuclear regulations and guide “direct investments to spur a flourishing and competitive nuclear power industry in the Lone Star State. Texas will lead the nuclear renaissance.”

The Texas Nuclear Alliance says growth of nuclear power in the U.S. has stalled while China and Russia have made significant gains in the nuclear sector.

“As Texas considers its energy future, the time has come to invest in nuclear power — an energy source capable of ensuring grid reliability, economic opportunity, and energy and national security,” Reed Clay, president of the alliance, said.

“Texas is entering a pivotal moment and has a unique opportunity to lead. The rise of artificial intelligence and a rebounding manufacturing base will place unprecedented demands on our electricity infrastructure,” Clay added. “Meeting this moment will require consistent, dependable power, and with our business-friendly climate, streamlined regulatory processes, and energy-savvy workforce, we are well-positioned to become the hub for next-generation nuclear development.”

Abbott’s push for increased reliance on nuclear power in Texas comes as public support for the energy source grows. A 2024 survey commissioned by the Texas Public Policy Institute found 55 percent of Texans support nuclear energy. Nationwide support for nuclear power is even higher. A 2024 survey conducted by Bisconti Research showed a record-high 77 percent of Americans support nuclear energy.

Nuclear power accounted for 7.5 percent of Texas’ electricity as of 2024, according to the Nuclear Energy Institute, but made up a little over 20 percent of the state’s clean energy. Currently, four traditional reactors produce nuclear power at two plants in Texas. The total capacity of the four nuclear reactors is nearly 5,000 megawatts.

Because large nuclear plants take years to license and build, small factory-made modular reactors will meet much of the shorter-term demand for nuclear energy. A small modular reactor has a power capacity of up to 300 megawatts. That’s about one-third of the generating power of a traditional nuclear reactor, according to the International Atomic Energy Agency.

A report from BofA Global Research predicts the global market for small nuclear reactors could reach $1 trillion by 2050. These reactors are cheaper and safer than their larger counterparts, and take less time to build and produce fewer CO2 emissions, according to the report. Another report, this one from research company Bloomberg Intelligence, says soaring demand for electricity — driven mostly by AI data centers — will fuel a $350 billion boom in nuclear spending in the U.S., boosting output from reactors by 63 percent by 2050.

Global nuclear capacity must triple in size by 2050 to keep up with energy demand tied to the rise of power-gobbling AI data centers, and to accomplish decarbonization and energy security goals, the BofA report says. Data centers could account for nine percent of U.S. electricity demand by 2035, up from about four percent today, according to BloombergNEF.

As the Energy Capital of the World, Houston stands to play a pivotal role in the evolution of small and large nuclear reactors in Texas and around the world. Here are just three of the nuclear power advancements that are happening in and around Houston:

Houston is poised to grab a big chunk of the more than 100,000 jobs and more than $50 billion in economic benefits that Jimmy Glotfelty, a former member of the Texas Public Utility Commission, predicts Texas will gain from the state’s nuclear boom. He said nuclear energy legislation signed into law this year by Abbott will provide “a leg up on every other state” in the race to capitalize on the burgeoning nuclear economy.

“Everybody in the nuclear space would like to build plants here in Texas,” Inside Climate News quoted Glotfelty as saying. “We are the low-regulatory, low-cost state. We have the supply chain. We have the labor.”
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Texas legislators carved out $715 million for nuclear, semiconductor and other economic development projects in the 2025 session. Photo via Getty Images

Here's how Houston's energy and innovation sectors fared in the 2025 Texas legislative session

bills, bills, bills

The Greater Houston Partnership is touting a number of victories during the recently concluded Texas legislative session that will or could benefit the Houston area. They range from millions of dollars for energy projects to billions of dollars for dementia research.

“These wins were only possible through deep collaboration, among our coalition partners, elected officials, business and community leaders, and the engaged members of the Partnership,” according to a partnership blog post. “Together, we’ve demonstrated how a united voice for Houston helps drive results that benefit all Texans.”

In terms of business innovation, legislators carved out $715 million for nuclear, semiconductor, and other economic development projects, and a potential $1 billion pool of tax incentives through 2029 to support research-and-development projects. The partnership said these investments “position Houston and Texas for long-term growth.”

"Nuclear power renaissance"

House Bill 14 (HB 14), for instance, aims to lead a “nuclear power renaissance in the United States,” according to Texas Gov. Greg Abbott’s office. HB 14 establishes the Texas Advanced Nuclear Energy Office, and allocates $350 million for nuclear development and deployment. Two nuclear power plants currently operate in Texas, generating 10 percent of the energy that feeds the Electric Reliability Council Texas (ERCOT) power grid.

“This initiative will also strengthen Texas’ nuclear manufacturing capacity, rebuild a domestic fuel cycle supply chain, and train the future nuclear workforce,” Abbott said in a news release earlier this year.

One of the beneficiaries of Texas’ nuclear push could be Washington, D.C.-based Last Energy, which plans to build 30 micro-nuclear reactors near Abilene to serve power-gobbling data centers across the state. Houston-based Pelican Energy Partners also might be able to take advantage of the legislation after raising a $450 million fund to invest in companies that supply nuclear energy services and equipment.

Reed Clay, president of the Texas Nuclear Alliance, called this legislation “the most important nuclear development program of any state.”

“It is a giant leap forward for Texas and the United States, whose nuclear program was all but dead for decades,” said Clay. “With the passage of HB 14 and associated legislation, Texas is now positioned to lead a nuclear renaissance that is rightly seen as imperative for the energy security and national security of the United States.”

Infrastructure

In the infrastructure arena, state lawmakers:

  • Approved $265 million for Houston-area water and flood mitigation projects, including $100 million for the Lynchburg Pump Station.
  • Created the Lake Houston Dredging and Maintenance District.
  • Established a fund for the Gulf Coast Protection District to supply $550 million for projects to make the coastline and ship channel more resilient.

Dementia institute

One of the biggest legislative wins cited by the Greater Houston Partnership was passage of legislation sponsored by Sen. Joan Huffman, a Houston Republican, to provide $3 billion in funding over 10 years for the Dementia Prevention and Research Institute of Texas. Voters will be asked in November to vote on a ballot initiative that would set aside $3 billion for the new institute.

The dementia institute would be structured much like the Cancer Prevention and Research Institute of Texas (CPRIT), a state agency that provides funding for cancer research in the Lone Star State. Since its founding in 2008, CPRIT has awarded nearly $3.9 billion in research grants.

“By establishing the Dementia Prevention and Research Institute of Texas, we are positioning our state to lead the charge against one of the most devastating health challenges of our time,” Huffman said. “With $3 billion in funding over the next decade, we will drive critical research, develop new strategies for prevention and treatment, and support our healthcare community. Now, it’s up to voters to ensure this initiative moves forward.”

More than 500,000 Texans suffer from some form of dementia, including Alzheimer’s disease, according to Lt. Gov. Dan Patrick.

“With a steadfast commitment, Texas has the potential to become a world leader in combating [dementia] through the search for effective treatments and, ultimately, a cure,” Patrick said.

Funding for education

In the K-12 sector, lawmakers earmarked an extra $195 million for Houston ISD, $126.7 million for Cypress-Fairbanks ISD, $103.1 million for Katy ISD, $80.6 million for Fort Bend ISD, and $61 million for Aldine ISD, the partnership said.

In higher education, legislators allocated:

  • $1.17 billion for the University of Houston College of Medicine, University of Texas Health Science Center at Houston, UT MD Anderson Cancer Center, and Baylor College of Medicine.
  • $922 million for the University of Houston System.
  • $167 million for Texas Southern University.
  • $10 million for the Center for Biotechnology at San Jacinto College.
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Fervo taps into its hottest-ever geothermal reservoir

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Things are heating up at Houston-based geothermal power company Fervo Energy.

Fervo recently drilled its hottest well so far at a new geothermal site in western Utah. Fewer than 11 days of drilling more than 11,000 feet deep at Project Blanford showed temperatures above 555 degrees Fahrenheit, which exceeds requirements for commercial viability. Fervo used proprietary AI-driven analytics for the test.

Hotter geothermal reservoirs produce more energy and improve what’s known as energy conversion efficiency, which is the ratio of useful energy output to total energy input.

“Fervo’s exploration strategy has always been underpinned by the seamless integration of cutting-edge data acquisition and advanced analytics,” Jack Norbeck, Fervo’s co-founder and chief technology officer, said in a news release. “This latest ultra-high temperature discovery highlights our team’s ability to detect and develop EGS sweet spots using AI-enhanced geophysical techniques.”

Fervo says an independent review confirms the site’s multigigawatt potential.

The company has increasingly tapped into hotter and hotter geothermal reservoirs, going from 365 degrees at Project Red to 400 degrees at Cape Station and now more than 555 degrees at Blanford.

The new site expands Fervo’s geologic footprint. The Blanford reservoir consists of sedimentary formations such as sandstones, claystones and carbonates, which can be drilled more easily and cost-effectively than more commonly targeted granite formations.

Fervo ranks among the top-funded startups in the Houston area. Since its founding in 2017, the company has raised about $1.5 billion. In January, Fervo filed for an IPO that would value the company at $2 billion to $3 billion, according to Axios Pro.

Acquisitions and agreements fuel Houston energy news to know right now

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Editor's note: The top Houston energy news for the first half of February includes acquisitions, agreements, and must-attend events. Below are the five most-read EnergyCapitalHTX stories from Feb. 1-15, 2026:

Here are 5 must-attend Houston energy events for February 2026

Acquisitions and agreements fuel the top Houston energy news to knowCatch up on our top news for the first half of February. Courtesy photo

The second half of February is buzzing with must-attend events for those in the Houston energy sector. We've rounded up a host of events to put on your calendar for the month, with topics ranging from AI in energy to emissions management for a sustainable future. Continue reading.

ERCOT to capture big share of U.S. solar power growth through 2027

A new report predicts solar power supplied to the ERCOT grid will jump by 89 percent by the end of 2027. Photo by Red Zeppelin/Pexels

Much of the country’s growth in utility-scale solar power generation will happen in the grid operated by the Electric Reliability Council of Texas (ERCOT), according to a new forecast. Continue reading.

Syzygy inks long-term offtake agreement for first commercial SAF plant

Syzygy Plasmonics has secured an offtake agreement for 100% of the production from its first commercial SAF plant. Photo courtesy of Syzygy.

Houston-based Syzygy Plasmonics has secured a six-year official offtake agreement for the entire production volume of its first commercial-scale biogas-to-sustainable aviation fuel project in Uruguay, known as NovaSAF-1. Continue reading.

Spring-based private equity firm acquires West Texas wind farm

Spring-based Arroyo Investors has purchased Whirlwind Energy Center in Amarillo, Texas. Photo by Sam LaRussa on Unsplash.

Spring-based private equity firm Arroyo Investors has teamed up with ONCEnergy, a Portland, Oregon-based developer of clean energy projects, to buy a 60-megawatt wind farm southeast of Amarillo. Continue reading.

$21.5 billion merger will create Houston-based energy powerhouse

Devon Energy will buy Houston-based Coterra Energy. Photo via Coterra Energy

Oklahoma City, Oklahoma-based Devon Energy has agreed to buy Houston-based Coterra Energy in a $21.5 billion all-stock deal, forming an energy powerhouse that will be headquartered in Houston. The combined company, boasting an enterprise value of $58 billion, will adopt the Devon brand name. Continue reading.

Texas claims No. 1 spot on new energy resilience report

A new report by mineral group Texas Royalty Brokers ranks Texas as the No. 1 most energy-resilient state.

The study focused on four main sources of electricity in hydroelectric dams, natural gas plants, nuclear reactors and petroleum facilities. Each state was given an Energy Resilience Score based on size and diversity of its power infrastructure, energy production and affordability for residents.

Texas earned a score of 71.3 on the report, outpacing much of the rest of the country. Pennsylvania came in at No. 2 with a score of 55.8, followed by New York (49.1) and California (48.4).

According to the report, Texas produces 11.7 percent of the country’s total energy, made possible by the state’s 141,000-megawatt power infrastructure—the largest in America.

Other key stats in the report for Texas included:

  • Per-capita consumption: 165,300 kWh per year
  • Per-capita expenditures: $5,130 annually
  • Total summer capacity: 141,200 megawatts

Despite recent failures in the ERCOT grid, including the 2021 power grid failure during Winter Storm Uri and continued power outages with climate events like 2024’s Hurricane Beryl that left 2.7 million without power, Texas still was able to land No. 1 on an energy resilience list. Texas has had the most weather-related power outages in the country in recent years, with 210 events from 2000 to 2023, according to an analysis by the nonprofit Climate Central. It's also the only state in the lower 48 with no major connections to neighboring states' power grids.

Still, the report argues that “(Texas’ infrastructure) is enough to provide energy to 140 million homes. In total, Texas operates 732 power facilities with over 3,000 generators spread across the state, so a single failure can’t knock out the entire grid here.”

The report acknowledges that a potential problem for Texas will be meeting the demands of AI data centers. Eric Winegar, managing partner at Texas Royalty Brokers, warns that these projects consume large amounts of energy and water.

According to another Texas Royalty Brokers report, Texas has 17 GPU cluster sites across the state, which is more than any other region in the United States. GPUs are specialized chips that run AI models and perform calculations.

"Energy resilience is especially important in the age of AI. The data centers that these technologies use are popping up across America, and they consume huge amounts of electricity. Some estimates even suggest that AI could account for 8% of total U.S. power consumption by 2030,” Winegar commented in the report. “We see that Texas is attracting most of these new facilities because it already has the infrastructure to support them. But we think the state needs to keep expanding capacity to meet growing demand."

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