X-energy could receive up to $1 billion in additional U.S. Department of Energy support for its Seadrift, Texas, reactor development with Dow. The new funding would expand a cost-shared program behind four Xe-100 reactors planned to provide electricity and industrial steam as licensing, construction planning and fuel-supply work continue.
Key Takeaways
- X-energy said the Department of Energy notified the company that its Advanced Reactor Demonstration Program agreement could receive up to $1 billion more.
- The added support would bring total public funding tied to the Seadrift project since 2021 to about $2.15 billion, according to Reuters.
- The proposed plant calls for four 80-megawatt Xe-100 reactors, providing 320 megawatts of planned electrical capacity.
- The Nuclear Regulatory Commission completed an environmental assessment in May 2026, but the construction permit remains under review.
- X-energy’s TX-1 fuel facility in Oak Ridge, Tennessee, received a 40-year NRC material license in February 2026.
X-energy CEO Clay Sell said the Department of Energy notified the company that its Advanced Reactor Demonstration Program agreement could receive up to another $1 billion in public support.
Reuters reported Aug. 13 that the additional amount would raise total public funding for the Dow project in Seadrift since 2021 to as much as $2.15 billion. A Department of Energy spokesperson confirmed the additional support and said it would remain subject to the program’s existing 50/50 cost-share requirements.
The structure is an important distinction. The announcement does not represent a single $1 billion payment to X-energy. Instead, eligible costs are shared under the federal program as work advances on reactor design, licensing, project planning and related fuel infrastructure.
Up to $1B More Extends the X-Energy Texas Nuclear Project
The expanded funding framework gives X-energy and Dow additional capacity to continue work on the Long Mott Generating Station, the proposed nuclear facility at Dow’s UCC Seadrift Operations site on the Texas Gulf Coast.
The Department of Energy describes Long Mott as a four-unit plant using X-energy’s Xe-100 high-temperature gas-cooled reactor. Each unit is designed for 80 megawatts of electrical output, bringing planned capacity to 320 megawatts. The system is also intended to provide high-temperature steam for industrial use.
X-energy said Aug. 13 that the Department of Energy had approved its ARDP continuation application through March 2027. According to the company, the cost-sharing arrangement supports continued design, licensing, commercialization and construction-related work for the first-of-a-kind Seadrift plant and the TX-1 fuel facility.
The project is developing as Texas power infrastructure continues to expand amid rising electricity demand. Long Mott differs from a conventional generating project because its planned role is tied directly to the operating needs of a large manufacturing complex rather than electricity production alone.
X-energy also reported $54.6 million in revenue and grant income for the second quarter of 2026, up from $21.5 million in the same quarter of 2025. The company attributed much of that increase to greater activity under its Department of Energy agreement, including higher spending on materials, subcontractor services and payroll as development work increased.
The latest funding announcement therefore arrives while the project is moving through several costly stages at the same time. Engineering and licensing remain underway, while X-energy is also building the fuel-manufacturing capacity required to support deployment of its reactor technology.
Seadrift Links Nuclear Power to Industrial Steam
Dow’s Seadrift complex gives the proposed reactor plant a different operating profile from nuclear facilities designed primarily to send electricity to the grid.
The Long Mott Generating Station is intended to replace aging energy and steam assets at the manufacturing site while supplying both electricity and process steam. Dow says its 4,700-acre Seadrift operation produces more than 4 billion pounds of materials annually for uses including food packaging, footwear, wire and cable insulation, solar components and medical-related packaging.
The electricity-and-steam combination places Seadrift within broader small modular reactor development focused on applications that require continuous energy and process heat. The proposed deployment would also give X-energy a commercial-scale industrial setting for its Xe-100 design.
Sell said during the company’s earnings call that the facility is expected to be “the first grid-scale advanced nuclear reactor deployed to serve an industrial site in North America.” That description remains an expectation rather than an operating milestone because regulatory authorization and construction are still pending.
The industrial setting is one reason the Seadrift project carries significance beyond a single power plant. If completed as proposed, the four reactors would need to integrate with a manufacturing operation where reliable electricity and steam are part of continuous production.
That requirement places attention not only on reactor performance, but also on construction execution, fuel availability and the ability to coordinate nuclear systems with an existing industrial site.
Licensing and Fuel Supply Define the Next Milestones
Dow and X-energy submitted a construction permit application to the Nuclear Regulatory Commission on March 31, 2025. The NRC accepted the application for review in May 2025, beginning the formal process for the planned four-reactor Long Mott Generating Station.
A significant regulatory step followed in May 2026, when the NRC completed an environmental assessment and issued a Finding of No Significant Impact for the proposed project. The finding addressed the environmental review, but it did not authorize construction. The construction permit remains a separate regulatory requirement.
Dow has said construction could begin after the permit is received and after the company confirms that the project can meet its required financial targets. Reuters reported that Dow and X-energy are aiming for operation in the early 2030s, leaving licensing, final engineering, procurement, construction and commissioning ahead.
Fuel production is advancing on a parallel track. X-energy subsidiary TRISO-X is building the TX-1 fuel fabrication facility in Oak Ridge, Tennessee. The NRC approved a 40-year Part 70 Special Nuclear Material license for the facility in February 2026, allowing commercial nuclear fuel production once the plant is completed and ready to operate.
The Department of Energy says TX-1 is intended to manufacture TRISO fuel for the Xe-100 and potentially other advanced reactor developers. X-energy said in its second-quarter update that vertical construction of the TX-1 building shell was nearing completion, with support-building and interior work scheduled to begin during the third quarter of 2026.
For the X-Energy Texas nuclear project, the additional funding expands the resources available under an existing cost-sharing structure, but it does not remove the remaining regulatory or construction steps. Progress now depends on the NRC permit review, continued engineering, fuel-facility development and the eventual transition from planning into authorized construction.
Frequently Asked Questions
What Is the X-Energy Texas Nuclear Project?
The X-Energy Texas nuclear project is a proposed four-reactor development at Dow’s manufacturing complex in Seadrift, Texas. It would use four Xe-100 reactors to provide electricity and high-temperature industrial steam.
How Much Additional Funding Could X-Energy Receive?
X-energy said its Department of Energy agreement could receive up to $1 billion in additional support. Reuters reported that the new amount would bring total public funding tied to the Seadrift development since 2021 to about $2.15 billion.
How Much Power Is the Seadrift Project Designed to Produce?
The planned station would contain four Xe-100 units rated at 80 megawatts each. Together, they would provide 320 megawatts of planned electrical capacity while also producing industrial steam.
Has Construction of the Reactors Been Approved?
Not yet. The NRC has completed an environmental assessment and issued a Finding of No Significant Impact, but the construction permit remains under regulatory review.
When Could the Project Begin Operating?
Dow and X-energy are targeting the early 2030s for operation, according to Reuters. The schedule remains dependent on licensing, engineering, construction, commissioning and other project requirements.
