Small nuclear reactors gain momentum in Texas as projects advance

Texas has moved from a gubernatorial working group to legislation and state funding while hosting multiple small modular reactor projects backed by federal and private support. Several demonstration projects and regulatory milestones are scheduled in the coming years, even as costs, licensing and long-term waste storage remain unresolved.

Texas has accelerated its push for small modular reactors (SMRs), moving from an executive working group to state legislation and funding in a short period. Officials and companies say the state’s growing demand from data centers and electrification is a key driver. Multiple projects using different reactor technologies are now moving beyond studies and toward demonstrations. At the same time, analysts and regulators note persistent concerns about cost, licensing timelines and waste management. Key details: - Policy and funding: Gov. Greg Abbott convened a Texas Advanced Nuclear Reactor Working Group in 2023 and the Legislature passed House Bill 14 in June 2025, creating a $350 million Texas Nuclear Development Fund; the federal ADVANCE Act (July 2024) directed the Nuclear Regulatory Commission to streamline reviews and cut fees for advanced reactor developers. - Major projects: The Department of Energy’s Advanced Reactor Demonstration Program provided $1.2 billion to support X-energy’s plan for four 80-megawatt reactors at Dow Chemical’s Seadrift site, with commercial output expected in the early 2030s; Natura Resources is building a 1-megawatt molten-salt research reactor in Abilene and aims to have it operational by the end of 2026 or early 2027, with a planned 100-megawatt commercial design under development. - Smaller, factory-built approaches: Aalo Atomics is developing truck-sized, sodium-cooled fast reactors that produce 10 megawatts each and plans to activate a first 10-megawatt test reactor within about five months after prototype testing completed at the end of December, with a commercial model based on multiple units. - Grid context and demand: ERCOT’s 2023 generation mix included about 45% natural gas, 24% wind, 14% coal, 9% existing nuclear and 7% solar; a University of Texas Bureau of Business Research analysis estimated average grid demand could nearly triple by 2050 driven by data centers, electric vehicles and oilfield electrification. - Cost and licensing hurdles: A grid modeling study cited in the coverage found nuclear would be built in ERCOT only if upfront capital costs fall to about $3 million per megawatt or lower; National Renewable Energy Laboratory projections place SMR costs between $2.9 million and $10.1 million per megawatt, and the NRC review process for advanced designs typically requires operating data from demonstrations and can take 18 months or more. - Waste and public concerns: Observers note that SMRs will still produce radioactive waste without a permanent national disposal solution, and past disputes over proposed waste storage in West Texas highlight continuing local and political sensitivities. Summary: State and federal actions have created funding and regulatory attention that are helping several distinct SMR projects in Texas move into demonstration phases, with timelines that include prototype testing, summer regulatory milestones and planned demonstration reactors through 2026 and into the early 2030s. Key constraints remain cost competitiveness, multi-year licensing steps and unresolved long-term waste storage, and those issues will shape whether projects move from demonstration to wider commercial deployment.