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New initiative to drive efforts to deploy first advanced small modular nuclear reactor

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The International Energy Agency has determined that nuclear energy production would need to increase 80 percent globally by 2040 to stay on track with sustainability targets, including international climate goals. Photo via houston.org

A new initiative from X-energy, bolstered by Dow, is powering low-carbon emissions energy. X-energy, LLC is a nuclear reactor and fuel design engineering company. The company was selected by the U.S. Department of Energy in 2020 to receive up to $1.2 billion under the Advanced Reactor Demonstration Program Cooperative Agreement in federal cost-shared funding to develop, license, build, and demonstrate an operational advanced reactor and fuel fabrication facility within a 10-year span.

In 2022, X-energy announced a $50 million joint development agreement with multinational chemical giant Dow to demonstrate the first-grid advanced nuclear reactor at an industrial site. As part of the agreement, Dow is now a sub-awardee under X-energy’s ARDP with the DOE. At the time of the announcement, Dow also brought to light its intention to take a minority equity stake in X-energy.

Last month, the University of Texas at Austin Cockrell School of Engineering hosted a panel discussion with Governor Abbott, he noted “Texas is the energy capital of the world” Abbott said, “When you look at the fact that Texas is the fastest-growing state with regard to population and businesses, you know that our demand for power is only going to increase.” Abbott also said, “We’re going to be studying and evaluating the reliability, the safety of nuclear power. If it passes all the tests, we will be looking to dramatically expand nuclear power in the state of Texas for the primary purpose of providing reliable, dispatchable power to our grid.”

The International Energy Agency has determined that nuclear energy production would need to increase 80 percent globally by 2040 to stay on track with sustainability targets, including international climate goals.

Dow and X-energy are slated to install an Xe-100 high-temperature, gas-cooled reactor plant at one of Dow’s sites in Seadrift, between Corpus Christi and Houston, which produces more than 4 million pounds each year of materials used in packaging, footwear, wire and cable insulation and solar cell membranes. It also is expected to reduce the plant’s emissions by 440,000 metric tons of carbon dioxide equivalent annually, as steps by Michigan-based Dow toward achieving goals of carbon neutrality by 2050 and reducing carbon emissions by 30 percent by 2030.

Jim Fitterling, Dow chairman and CEO, noted in a press release issued in early March, “The utilization of X-energy’s fourth generation nuclear technology will enable Dow to take a major step in reducing our carbon emissions while delivering lower carbon footprint products to our customers and society,” he said. “The collaboration with X-energy and the DOE will serve as a leading example of how the industrial sector can safely, effectively and affordably decarbonize.”

X-energy will install four of its Xe-100 reactors at the coastal site with each unit designed to produce 80 megawatts of energy fueled by the company’s baseball-sized uranium fuel kernels, encased in layers of pyrolytic carbon, silicon carbide and porous carbon. The reactors will partly be constructed by Fort Worth-based Paragon Energy Solutions, LLC, a supply chain management company that focuses its efforts on tackling the nuclear industry’s most difficult challenges. The Xe-100 modular reactor is one of two designs selected by the DOE to receive $80 million each of initial cost-shared funding to build an advanced reactor demonstration plant that can be operational within seven years.

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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.

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

5 reasons Texas energy leaders are excited about sustainable nuclear energy

the view from heti

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.
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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.

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What EPA’s carbon capture and storage permitting announcement means for Texas

The View From HETI

Earlier this month, Texas was granted authority by the federal government for permitting carbon capture and storage (CCS) projects. This move could help the U.S. cut emissions while staying competitive in the global energy game.

In June, the U.S. Environmental Protection Agency (EPA) proposed approving Texas’ request for permitting authority under the Safe Drinking Water Act (SDWA) for Class VI underground injection wells for carbon capture and storage (CCS) in the state under a process called “primacy.” The State of Texas already has permitting authority for other injection wells (Classes I-V). In November, the EPA announced final approval of Texas’ primacy request.

Why This Matters for Texas

Texas is the headquarters for virtually every segment of the energy industry. According to the U.S. Energy Information Administration, Texas is the top crude oil- and natural-gas producing state in the nation. The state has more crude oil refineries and refining capacity than any other state in the nation. Texas produces more electricity than any other state, and the demand for electricity will grow with the development of data centers and artificial intelligence (AI). Simply put, Texas is the backbone of the nation’s energy security and competitiveness. For the nation’s economic competitiveness, it is important that Texas continue to produce more energy with less emissions. CCS is widely regarded as necessary to continue to lower the emissions intensity of the U.S. industrial sector for critical products including power generation, refining, chemicals, steel, cement and other products that our country and world demand.

The Greater Houston Partnership’s Houston Energy Transition Initiative (HETI) has supported efforts to bring CCUS to a broader commercial scale since the initiative’s inception.

“Texas is uniquely positioned to deploy CCUS at scale, with world-class geology, a skilled workforce, and strong infrastructure. We applaud the EPA for granting Texas the authority to permit wells for CCUS, which we believe will result in safe and efficient permitting while advancing technologies that strengthen Texas’ leadership in the global energy market,” said Jane Stricker, Executive Director of HETI and Senior Vice President, Energy Transition at the Greater Houston Partnership.

What is Primacy, and Why is it Important?

Primacy grants permitting authority for Class VI wells for CCS to the Texas Railroad Commission instead of the EPA. Texas is required to follow the same strict standards the EPA uses. The EPA has reviewed Texas’ application and determined it meets those requirements.

Research suggests that Texas has strong geological formations for CO2 storage, a world-class, highly skilled workforce, and robust infrastructure primed for the deployment of CCS. However, federal permitting delays are stalling billions of dollars of private sector investment. There are currently 257 applications under review, nearly one-quarter of which are located in Texas, with some applications surpassing the EPA’s target review period of 24 months. This creates uncertainty for developers and investors and keeps thousands of potential jobs out of reach. By transferring permitting to the state, Texas will apply local resources to issue Class VI permits across the states in a timely manner.

Texas joins North Dakota, Wyoming, Louisiana, West Virginia and Arizona with the authority for regulating Class VI wells.

Is CCS safe?

A 2025 study by Texas A&M University reviewed operational history and academic literature on CCS in the United States. The study analyzed common concerns related to CCS efficacy and safety and found that CCS reduces pollutants including carbon dioxide, particulate matter, sulfur oxides and nitrogen oxides. The research found that the risks of CCS present a low probability of impacting human life and can be effectively managed through existing state and federal regulations and technical monitoring and safety protocols.

What’s Next?

The final rule granting Texas’ primacy will become effective 30 days after publication in the Federal Register. Once in effect, the Texas Railroad Commission will be responsible for permitting wells for carbon capture, use and storage and enforcing their safe operation.

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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.

Houston energy expert: How the U.S. can turn carbon into growth

Guets Column

For the past 40 years, climate policy has often felt like two steps forward, one step back. Regulations shift with politics, incentives get diluted, and long-term aspirations like net-zero by 2050 seem increasingly out of reach. Yet greenhouse gases continue to rise, and the challenges they pose are not going away.

This matters because the costs are real. Extreme weather is already straining U.S. power grids, damaging homes, and disrupting supply chains. Communities are spending more on recovery while businesses face rising risks to operations and assets. So, how can the U.S. prepare and respond?

The Baker Institute Center for Energy Studies (CES) points to two complementary strategies. First, invest in large-scale public adaptation to protect communities and infrastructure. Second, reframe carbon as a resource, not just a waste stream to be reduced.

Why Focusing on Emissions Alone Falls Short

Peter Hartley argues that decades of global efforts to curb emissions have done little to slow the rise of CO₂. International cooperation is difficult, the costs are felt immediately, and the technologies needed are often expensive. Emissions reduction has been the central policy tool for decades, and it has been neither sufficient nor effective.

One practical response is adaptation, which means preparing for climate impacts we can’t avoid. Some of these measures are private, taken by households or businesses to reduce their own risks, such as farmers shifting crop types, property owners installing fire-resistant materials, or families improving insulation. Others are public goods that require policy action. These include building stronger levees and flood defenses, reinforcing power grids, upgrading water systems, revising building codes, and planning for wildfire risks. Such efforts protect people today while reducing long-term costs, and they work regardless of the source of extreme weather. Adaptation also does not depend on global consensus; each country, state, or city can act in its own interest. Many of these measures even deliver benefits beyond weather resilience, such as stronger infrastructure and improved security against broader threats.

McKinsey research reinforces this logic. Without a rapid scale-up of climate adaptation, the U.S. will face serious socioeconomic risks. These include damage to infrastructure and property from storms, floods, and heat waves, as well as greater stress on vulnerable populations and disrupted supply chains.

Making Carbon Work for Us

While adaptation addresses immediate risks, Ken Medlock points to a longer-term opportunity: turning carbon into value.

Carbon can serve as a building block for advanced materials in construction, transportation, power transmission, and agriculture. Biochar to improve soils, carbon composites for stronger and lighter products, and next-generation fuels are all examples. As Ken points out, carbon-to-value strategies can extend into construction and infrastructure. Beyond creating new markets, carbon conversion could deliver lighter and more resilient materials, helping the U.S. build infrastructure that is stronger, longer-lasting, and better able to withstand climate stress.

A carbon-to-value economy can help the U.S. strengthen its manufacturing base and position itself as a global supplier of advanced materials.

These solutions are not yet economic at scale, but smart policies can change that. Expanding the 45Q tax credit to cover carbon use in materials, funding research at DOE labs and universities, and supporting early markets would help create the conditions for growth.

Conclusion

Instead of choosing between “doing nothing” and “net zero at any cost,” we need a third approach that invests in both climate resilience and carbon conversion.

Public adaptation strengthens and improves the infrastructure we rely on every day, including levees, power grids, water systems, and building standards that protect communities from climate shocks. Carbon-to-value strategies can complement these efforts by creating lighter, more resilient carbon-based infrastructure.

CES suggests this combination is a pragmatic way forward. As Peter emphasizes, adaptation works because it is in each nation’s self-interest. And as Ken reminds us, “The U.S. has a comparative advantage in carbon. Leveraging it to its fullest extent puts the U.S. in a position of strength now and well into the future.”

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally appeared on LinkedIn.

UH launches new series on AI’s impact on the energy sector

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The University of Houston's Energy Transition Institute has launched a new Energy in Action Seminar Series that will feature talks focused on the intersection of the energy industry and digitization trends, such as AI.

The first event in the series took place earlier this month, featuring Raiford Smith, global market lead for power & energy for Google Cloud, who presented "AI, Energy, and Data Centers." The talk discussed the benefits of widespread AI adoption for growth in traditional and low-carbon energy resources.

Future events include:

“Through this timely and informative seminar series, ETI will bring together energy professionals, researchers, students, and anyone working in or around digital innovation in energy," Debalina Sengupta, chief operating officer of ETI, said in a news release. "We encourage industry members and students to register now and reap the benefits of participating in both the seminar and the reception, which presents a fantastic opportunity to stay ahead of industry developments and build a strong network in the Greater Houston energy ecosystem.”

The series is slated to continue throughout 2026. Each presentation is followed by a one-hour networking reception. Register for the next event here.

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