Uploaded March 2026 | Updated September 2026, 2 weeks ago
1. Texas is the Nation's Leading SMR Testing Ground with $350 Million State Fund
Texas has become the main U.S. proving ground for Small Modular Reactors (SMRs) in less than 3 years since Gov. Abbott created the Advanced Nuclear Reactor Working Group in August 2023. The state legislature passed HB 14 in June 2025, establishing a $350 million Texas Nuclear Development Fund—the largest state-level nuclear commitment in the country. Multiple projects using different technologies are now moving beyond studies to actual construction.
2. Grid Demand Could Nearly Triple by 2050 - Nuclear Seen as Critical Solution
The UT Bureau of Business Research estimates average demand on the ERCOT grid could nearly triple by 2050, driven by AI data centers, electric vehicles, and electrification of Permian Basin oil fields. Currently, Texas gets 45% from natural gas, 24% wind, 14% coal, 9% nuclear, and 7% solar. Nuclear is seen as essential to provide 24/7 baseload power as the grid adds 200-300 gigawatts of load over coming decades—something intermittent renewables alone can't handle.
3. First Industrial SMR Could Power Dow Chemical Plant by Early 2030s
X-energy, backed by $1.2 billion from the DOE's Advanced Reactor Demonstration Program, plans to build four 80-megawatt reactors at Dow Chemical's Seadrift plant on the Texas coast. This will be the first commercial-scale SMR in the U.S., expected to start producing power for the plant and sending excess electricity to the grid in the early 2030s. This is a huge milestone—no SMR has reached commercial operation in the U.S. yet.
4. Innovative Dual-Purpose Technology: Molten Salt Reactors for Power + Water Desalination
Natura Resources is building the nation's first advanced liquid-fuel research reactor in 40 years at Abilene Christian University, with $240 million in funding ($120M private, $120M from Texas legislature). Their molten salt reactor design doesn't just generate 100 MW of electricity—the waste heat can drive thermal desalination systems to treat contaminated water from Permian Basin oil operations. The research reactor aims to be operational by end of 2026 or early 2027. This dual-use capability is perfect for your electrical engineer co-host's expertise!
5. Cost Challenge Remains: Nuclear Needs $3M/MW or Below to Compete in Texas Market
Grid modeling shows SMRs only become competitive in ERCOT when capital costs drop to $3 million per megawatt or below. Current industry projections range from $2.9M to $10.1M per MW—meaning without major cost reductions through regulatory reform, construction efficiency, or financial tools, nuclear may not be cost-competitive in Texas before 2040. Data centers help solve this by signing long-term power purchase agreements at premium prices, but widespread grid deployment faces economic headwinds. Licensing also takes 18+ months even at its fastest pace.
Reliance to invest in first new US oil refinery in 50 years, says Trump; calls $300 billion Texas project ‘historic deal’
1. Texas is the Nation's Leading SMR Testing Ground with $350 Million State Fund
Texas has become the main U.S. proving ground for Small Modular Reactors (SMRs) in less than 3 years since Gov. Abbott created the Advanced Nuclear Reactor Working Group in August 2023. The state legislature passed HB 14 in June 2025, establishing a $350 million Texas Nuclear Development Fund—the largest state-level nuclear commitment in the country. Multiple projects using different technologies are now moving beyond studies to actual construction.
2. Grid Demand Could Nearly Triple by 2050 - Nuclear Seen as Critical Solution
The UT Bureau of Business Research estimates average demand on the ERCOT grid could nearly triple by 2050, driven by AI data centers, electric vehicles, and electrification of Permian Basin oil fields. Currently, Texas gets 45% from natural gas, 24% wind, 14% coal, 9% nuclear, and 7% solar. Nuclear is seen as essential to provide 24/7 baseload power as the grid adds 200-300 gigawatts of load over coming decades—something intermittent renewables alone can't handle.
3. First Industrial SMR Could Power Dow Chemical Plant by Early 2030s
X-energy, backed by $1.2 billion from the DOE's Advanced Reactor Demonstration Program, plans to build four 80-megawatt reactors at Dow Chemical's Seadrift plant on the Texas coast. This will be the first commercial-scale SMR in the U.S., expected to start producing power for the plant and sending excess electricity to the grid in the early 2030s. This is a huge milestone—no SMR has reached commercial operation in the U.S. yet.
4. Innovative Dual-Purpose Technology: Molten Salt Reactors for Power + Water Desalination
Natura Resources is building the nation's first advanced liquid-fuel research reactor in 40 years at Abilene Christian University, with $240 million in funding ($120M private, $120M from Texas legislature). Their molten salt reactor design doesn't just generate 100 MW of electricity—the waste heat can drive thermal desalination systems to treat contaminated water from Permian Basin oil operations. The research reactor aims to be operational by end of 2026 or early 2027. This dual-use capability is perfect for your electrical engineer co-host's expertise!
5. Cost Challenge Remains: Nuclear Needs $3M/MW or Below to Compete in Texas Market
Grid modeling shows SMRs only become competitive in ERCOT when capital costs drop to $3 million per megawatt or below. Current industry projections range from $2.9M to $10.1M per MW—meaning without major cost reductions through regulatory reform, construction efficiency, or financial tools, nuclear may not be cost-competitive in Texas before 2040. Data centers help solve this by signing long-term power purchase agreements at premium prices, but widespread grid deployment faces economic headwinds. Licensing also takes 18+ months even at its fastest pace.
Reliance to invest in first new US oil refinery in 50 years, says Trump; calls $300 billion Texas project ‘historic deal’
