Dow and X-energy Submit Construction Permit Application to the U.S. Nuclear Regulatory Commission for Proposed Advanced Nuclear Project in Texas

Rhea-AI Summary

Dow (NYSE: DOW) and X-energy have submitted a construction permit application to the Nuclear Regulatory Commission for an advanced nuclear project in Seadrift, Texas. The project, developed through Dow's subsidiary Long Mott Energy , aims to provide Dow's UCC1 Seadrift Operations with clean power and industrial steam, replacing end-of-life assets.

The initiative is supported by the U.S. Department of Energy's Advanced Reactor Demonstration Program through cost-shared partnerships. The Xe-100 advanced small modular reactor (SMR) project could begin construction later this decade and start operations early next decade. The project has secured approximately $1.1 billion in private capital.

Once operational, the Long Mott Generating Station would be North America's first grid-scale advanced nuclear reactor serving an industrial site. The facility would eliminate most Scope 1 and 2 emissions at the Seadrift site, which manufactures over 4 billion pounds of materials annually across various applications.

Positive

• Project supported by U.S. DOE's Advanced Reactor Demonstration Program with cost-shared partnerships
• Secured $1.1 billion in private capital funding
• Will eliminate most Scope 1 and 2 emissions at the site
• Expected to provide competitive energy costs after subsidies
• Will ensure site remains competitively advantaged for facility lifetime

Negative

• 30-month waiting period for construction permit approval
• Project still contingent on meeting financial return targets
• Replacing end-of-life assets indicates necessary capital expenditure
• Extended timeline with operations not starting until early next decade

Insights

Energy Infrastructure Analyst

Dow's submission of a construction permit application for an advanced small modular reactor (SMR) represents a significant strategic energy initiative with long-term implications. This milestone initiates what could be a 30-month regulatory review before potential construction begins later this decade, with operations starting early next decade.

The Xe-100 reactor would replace end-of-life energy assets at Dow's Seadrift facility, which produces over 4 billion pounds of materials annually. The project's economics benefit from the DOE's Advanced Reactor Demonstration Program cost-sharing, which substantially reduces Dow's capital risk. The company explicitly states they expect energy costs to be "competitive with other alternatives for firm, clean energy" after accounting for subsidies.

This project addresses three critical business needs: reliability (ensuring uninterrupted operations at a major production site), emissions reduction (eliminating most Scope 1 and 2 emissions), and long-term cost stability (insulating operations from fossil fuel price volatility). By partnering with X-energy, which has secured $1.1 billion in private capital and DOE backing, Dow mitigates technology development risk.

While strategically sound, investors should note the extended timeline and multiple contingencies before implementation. The application represents progress on a major infrastructure initiative but with near-term financial implications for a company with $43 billion in annual sales.

Environmental Policy Specialist

Dow's advanced nuclear project application marks a pivotal shift in industrial decarbonization strategy with potentially transformative environmental implications. The proposed Xe-100 SMR would eliminate most Scope 1 and 2 emissions at their Seadrift facility—a significant emissions reduction for a site manufacturing 4 billion pounds of materials annually.

This project's environmental significance extends beyond Dow's operations, potentially establishing a precedent for industrial-scale clean energy transition. The announcement explicitly positions this as "the first grid-scale advanced nuclear reactor deployed to serve an industrial site in North America," creating a replicable model for hard-to-abate industrial sectors.

For ESG-focused investors, this initiative demonstrates Dow's concrete commitment to emissions reduction beyond paper pledges. Nuclear power's high capacity factor provides 24/7 carbon-free energy that complements intermittent renewables in industrial settings requiring constant steam and power.

The DOE's support through the Advanced Reactor Demonstration Program adds credibility and reduces project risk. However, the extended timeline—with operations beginning early next decade—means emissions benefits won't materialize for several years. The focus on maintaining the site's "competitively advantaged" position suggests this decision balances environmental goals with business imperatives, making it a sustainable approach to industrial decarbonization.

• Project supported by U.S. DOE's Advanced Reactor Demonstration Program
• Represents a key milestone toward bringing advanced nuclear energy to fruition in the U.S. 

MIDLAND, Mich. and ROCKVILLE, Md., March 31, 2025 /PRNewswire/ -- Dow (NYSE: DOW) and X-Energy Reactor Company, LLC ("X-energy") announced the submission of a construction permit application to the Nuclear Regulatory Commission ("NRC") for a proposed advanced nuclear project in Seadrift, Texas.

Dow's proposed advanced small modular reactor ("SMR") project is being developed by its wholly-owned subsidiary, Long Mott Energy LLC. The project is focused on providing Dow's UCC¹ Seadrift Operations manufacturing site ("Seadrift" or the "site") with safe, reliable, and clean power and industrial steam replacing existing energy and steam assets that are near end-of-life. The project is supported by the U.S. Department of Energy's (DOE) Advanced Reactor Demonstration Program ("ARDP") which is designed to accelerate the deployment of advanced reactors through cost-shared partnerships with U.S. industry.

Since 2018, X-energy, and subsequently Dow, have worked with the NRC through extensive pre-application engagements to demonstrate the unparalleled safety profile of the Xe-100 advanced SMR through its advanced fuel design, passive safety features, and state-of-the-art analysis techniques. This has culminated in a comprehensive application submittal that exceeds NRC regulations for the protection of public health and safety, as well as the environment, with substantial safety features.

Approval of the construction permit is an important step forward that could take up to 30 months. Once the permit is received and upon Dow confirming the ability to deliver the project while achieving its financial return targets, construction could begin. Dow expects the cost of energy ‐ net of all subsidies ‐ to be competitive with other alternatives for firm, clean energy.   

"This is an important next step in expanding access to safe, clean, reliable, cost-competitive nuclear energy in the U.S.," said Edward Stones, business vice president, Energy & Climate, Dow. "We look forward to engaging with the NRC, DOE, our business partners and the community throughout the application process."

"The construction permit application is a critical step to deliver on the vision of Congress and DOE to position the U.S. at the forefront of commercializing advanced reactor technology," said J. Clay Sell, chief executive officer of X-energy. "Together with our world-class partner, Dow, we will demonstrate how the technology deployed at Seadrift, Texas, can be quickly and efficiently replicated to meet incredible power demand growth across America."

The proposed project could begin construction later this decade and start up early next decade. The nuclear power and steam assets would eliminate most Scope 1 and 2 emissions at the site and ensure the site remains competitively advantaged for the life of the facility.

X-energy was selected by the DOE in 2020 to develop, license, and build an operational Xe-100 advanced SMR and TRISO-X fuel fabrication facility. Since that award, X-energy has completed the engineering and preliminary design of the nuclear reactor, has begun development and licensing of a fuel fabrication facility in Oak Ridge, Tennessee, and has secured approximately $1.1 billion in private capital to commercialize its technology. Once complete, Long Mott Generating Station is expected to be the first grid-scale advanced nuclear reactor deployed to serve an industrial site in North America.

Dow's Seadrift site covers 4,700 acres and manufactures more than 4 billion pounds of materials per year used across a wide variety of applications including food packaging and preservation, footwear, wire and cable insulation, solar cell membranes, and packaging for medical and pharmaceutical products.

Available pictures for download:
XE-100 reactor
Plant rendering 

Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately $43 billion in 2024. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

About X-Energy Reactor Company, LLC
X-Energy Reactor Company, LLC, is a leading developer of advanced small modular nuclear reactors and fuel technology for clean energy generation that is redefining the nuclear energy industry through its development of safer and more efficient advanced small modular nuclear reactors and proprietary fuel to deliver reliable, zero-carbon and affordable energy to people around the world. X-energy's simplified, modular, and intrinsically safe SMR design expands applications and markets for deployment of nuclear technology and drives enhanced safety, lower cost and faster construction timelines when compared with other SMRs and conventional nuclear. For more information, visit X-energy.com or connect with us on Twitter or LinkedIn.

Dow
Investors:
Andrew Riker
ajriker@dow.com
+1 989-633-5564

Media:
Sarah Young
media@dow.com
+1-989.638.6871

X-energy
Media:
Robert McEntyre
240.673.6565
inquiries@x-energy.com 

¹ Union Carbide Corporation is a wholly-owned subsidiary of The Dow Chemical Company

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SOURCE The Dow Chemical Company

FAQ

When will Dow's advanced nuclear reactor project in Seadrift, Texas begin operations?

The project is expected to begin construction later this decade and start operations early next decade, subject to permit approval and financial return targets.

How much private capital has been secured for DOW's nuclear reactor project?

X-energy has secured approximately $1.1 billion in private capital to commercialize the technology.

What environmental impact will the DOW nuclear project have on the Seadrift facility?

The nuclear power and steam assets would eliminate most Scope 1 and 2 emissions at the Seadrift site.

How long will the NRC construction permit approval process take for DOW's nuclear project?

The construction permit approval process could take up to 30 months.

What is the production capacity of DOW's Seadrift facility where the nuclear reactor will be built?

The Seadrift site covers 4,700 acres and manufactures more than 4 billion pounds of materials per year.