X-energy receives regulatory approval to build first small modular nuclear reactors in Texas

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X-energy has obtained a U.S. Nuclear Regulatory Commission permit to construct four Xe-100 small modular reactors at a Dow chemical plant in Texas, marking a milestone for advanced nuclear technology in industrial settings.

Nuclear energy developer X-energy announced on November 10, 2026, that it had secured a crucial construction permit from the U.S. Nuclear Regulatory Commission (NRC) to build its first four commercial small modular reactors (SMRs). These reactors, designated Xe-100 units, will be located at a Dow chemical facility in Texas. Each reactor is designed to generate 80 megawatts of electricity alongside 200 megawatts of heat, positioning them as a dual-purpose energy source for industrial applications.

X-energy highlights that this permit approval represents the first authorization for an advanced nuclear reactor installation at an industrial site within the United States, signifying regulatory confidence in the SMR technology and potential expansion into non-power generation uses. The company's Xe-100 reactor employs a helium gas coolant circulating over uranium-fueled pellets, a design that X-energy claims offers safety advantages over more traditional water-cooled nuclear reactors.

Despite these claims, some experts have raised concerns about the expedited approval process. Edwin Lyman, director of nuclear power safety at the Union of Concerned Scientists, criticized the NRC for deferring critical safety evaluations until after construction approval, suggesting that some issues should have been addressed upfront. These concerns underline the ongoing debate on balancing innovation with rigorous safety standards in nuclear oversight.

The nuclear sector in the U.S. sees SMRs as a promising pathway to make nuclear power more scalable and cost-effective, though no SMR is currently operational in the country. Construction of X-energy’s reactors is not expected to be completed until the early 2030s, reflecting the long development timelines typically associated with nuclear projects.

X-energy has gained significant backing from technology companies interested in clean energy solutions, exemplified by Amazon’s Climate Pledge Fund participation in a recent $500 million funding round and Amazon’s commitment to purchase up to 5 gigawatts of capacity from X-energy. The company’s initial public offering earlier this year raised $1 billion, although investor enthusiasm has tempered since then, as reflected in the current trading value of X-energy shares, which have fallen to less than half their IPO price.

While the permit marks a significant regulatory milestone for X-energy and the broader nuclear industry, the high capital costs and long lead times for nuclear projects mean that commercial viability and broader adoption of SMRs remain to be fully demonstrated. Nonetheless, the NRC’s approval signals a constructive step forward for advanced nuclear technology aimed at decarbonizing the industrial energy sector.