the view from heti

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

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.

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A View From HETI

1PointFive, a subsidiary of Oxy, was granted the first-ever EPA permits for its large-scale carbon capture and sequestration facility in Texas. Photo via 1pointfive.com

Houston’s Occidental Petroleum Corp., or Oxy, and its subsidiary 1PointFive announced that the U.S Environmental Protection Agency approved its Class VI permits to sequester carbon dioxide captured from its STRATOS Direct Air Capture (DAC) facility near Odessa. These are the first such permits issued for a DAC project, according to a news release.

The $1.3 billion STRATOS project, which 1PointFive is developing through a joint venture with investment manager BlackRock, is designed to capture up to 500,000 metric tons of CO2 annually and is expected to begin commercial operations this year. DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted. Major companies, such as Microsoft and AT&T, have secured carbon removal credit agreements through the project.

The permits are issued under the Safe Drinking Water Act's Underground Injection Control program. The captured CO2 will be stored in geologic formations more than a mile underground, meeting the EPA’s review standards.

“This is a significant milestone for the company as we are continuing to develop vital infrastructure that will help the United States achieve energy security,” Vicki Hollub, Oxy president and CEO, said in a news release.“The permits are a catalyst to unlock value from carbon dioxide and advance Direct Air Capture technology as a solution to help organizations address their emissions or produce vital resources and fuels.”

Additionally, Oxy and 1PointFive announced the signing of a 25-year offtake agreement for 2.3 million metric tons of CO2 per year from CF Industries’ upcoming Bluepoint low-carbon ammonia facility in Ascension Parish, Louisiana.

The captured CO2 will be transported to and stored at 1PointFive’s Pelican Sequestration Hub, which is currently under development. Eventually, 1PointFive’s Pelican hub in Louisiana will include infrastructure to safely and economically sequester industrial emissions in underground geologic formations, similar to the STRATOS project.

“CF Industries’ and its partners' confidence in our Pelican Sequestration Hub is a validation of our expertise managing carbon dioxide and how we collaborate with industrial organizations to become their commercial sequestration partner,” Jeff Alvarez, President of 1PointFive Sequestration, said in a news release.

1PointFive is storing up to 20 million tons of CO2 per year, according to the company.

“By working together, we can unlock the potential of American manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth,” Alvarez said in a news release.

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