The Seadrift nuclear project in Texas, a collaboration between Dow Chemical and X-energy, is poised to reshape the state’s energy and industrial landscape by deploying Small Modular Reactors (SMRs) to power Dow’s Seadrift manufacturing facility.
Located at Dow’s 4,700-acre manufacturing complex in Calhoun County, the facility will use four Xe-100 SMRs, each capable of producing 80 megawatts of electricity and industrial steam. These high-temperature gas reactors are designed to provide low-emission, reliable energy for industrial operations. The project aims to replace Dow’s aging gas-fired systems with zero-carbon alternatives. Construction permit applications were submitted to the U.S. Nuclear Regulatory Commission in March 2025, with construction expected to begin in 2026 and full operation by 2030.
This initiative is part of a broader national push to modernize energy infrastructure and reduce dependence on traditional fossil fuels, especially in the context of surging electricity demand from data centers and new technology applications. SMRs offer the flexibility to integrate into diverse energy systems and are viewed as a promising solution to supply dispatchable power while reducing greenhouse gas emissions.
Texas has emerged as a leader in the advanced nuclear space. Governor Greg Abbott and the Public Utility Commission of Texas released the Texas Advanced Nuclear Reactor Working Group’s report in late 2024, outlining a roadmap to establish the state as a hub for next-generation nuclear energy. The report proposed the creation of a Texas Nuclear Power Fund to incentivize SMR development and ensure grid reliability in the face of projected energy demand growth, which is expected to reach 150,000 megawatts by 2030.
The Seadrift project has received strong local support. In May 2023, the Calhoun County Commissioners Court established a reinvestment zone and approved tax abatements to facilitate the project. The economic impact is projected to be significant, with over 1,500 construction jobs during the build phase and up to 100 permanent positions once operational. The facility also strengthens Dow’s presence in the region, where it employs over 1,200 people and manufactures materials for industries such as food packaging and healthcare.
From an environmental standpoint, the SMRs are expected to reduce carbon dioxide emissions by about 440,000 metric tons per year—equivalent to 1.4% of Dow’s combined Scope 1 and 2 emissions. The reactors operate at 565°C, enabling both power generation and high-temperature steam production, which enhances their industrial utility. Their design emphasizes safety, using passive cooling systems and smaller fuel loads to lower risk profiles compared to traditional reactors.
Some concerns have been raised by academic and environmental observers regarding SMRs’ economic feasibility and long-term waste management. Critics point to potential cost overruns and the challenges of handling radioactive waste. However, there has been no significant public opposition to the Seadrift project, which may be attributed to its industrial application and the economic benefits it offers to the region.
Federal support is playing a critical role in advancing the project. The U.S. Department of Energy, through its Advanced Reactor Demonstration Program, has committed up to $1.23 billion in funding over seven years to support the development and commercialization of SMR technologies. This financial backing is part of a national effort to promote nuclear innovation and ensure the viability of clean baseload power in the coming decades.
Texas currently operates two major nuclear facilities—Comanche Peak and the South Texas Project—which together contribute between 8–12% of the state’s electricity. These plants have demonstrated high capacity factors and economic value, and the Seadrift project is expected to complement this foundation by offering a modular, scalable model tailored to industrial needs.
As Texas moves to solidify its role as a leader in next-generation energy technologies, the Seadrift SMR project stands out as a landmark effort. It represents the fusion of state policy, federal support, private-sector leadership, and technological innovation, positioning Texas at the forefront of the evolving energy economy.
