Full Breakdown
Texas Advances Small Modular Nuclear Reactor Technology
2/17/2026, 11:25:04 PM
Overview of Small Modular Reactors in Texas
In recent years, Texas has emerged as a significant testing ground for small modular nuclear reactors (SMRs), a technology that promises to enhance the state's energy grid while addressing growing electricity demands. Following Governor Greg Abbott's establishment of the Texas Advanced Nuclear Reactor Working Group in August 2023, the state has transitioned from executive directives to legislative support, culminating in the passage of House Bill 14 in June 2025. This legislation created a $350 million Texas Nuclear Development Fund, marking the largest state-level commitment to nuclear energy in the United States.
The Need for Reliable Energy Sources
As Texas's electricity demand is projected to nearly triple by 2050, driven by the rise of data centers and electric vehicles, the state's reliance on intermittent energy sources like wind and solar has raised concerns about grid stability. In 2023, natural gas accounted for 45% of Texas's electricity generation, with wind at 24% and nuclear at 9%. Thomas Gleeson, chair of the Public Utility Commission of Texas, emphasized the necessity of nuclear energy in achieving clean energy goals, stating, “If you believe in clean energy and care about the environment, nuclear has to be a part of that solution.”
Current Projects and Innovations
Several projects are currently underway in Texas, each employing different technologies. Natura Resources is developing the first advanced liquid-fuel research reactor in nearly 40 years at Abilene Christian University, with plans for a commercial reactor capable of generating 100 megawatts. This reactor aims to produce clean electricity while also addressing water contamination issues in the Permian Basin through thermal desalination.
Aalo Atomics, another Texas startup, is designing sodium-cooled fast reactors intended for factory mass production. Each unit will generate 10 megawatts, and the company plans to deploy a commercial model consisting of five units for a total of 50 megawatts. Matt Loszak, founder of Aalo Atomics, stated, “Our goal is to have a factory that can produce 20 or 30 gigawatts per year.”
Economic and Regulatory Challenges
Despite the momentum, significant challenges remain. The cost of building SMRs is a primary concern, with projections ranging from $2.9 million to $10.1 million per megawatt. A study from the University of Texas indicates that nuclear projects may only become viable if costs drop below $3 million per megawatt. Additionally, the Nuclear Regulatory Commission's lengthy licensing process poses hurdles for companies seeking to bring new reactor designs to market.
Criticism and Environmental Concerns
Critics of SMRs argue that these smaller reactors will still generate nuclear waste, which lacks a permanent disposal solution in the United States. Abbott previously opposed a federal license for a company seeking to store spent nuclear fuel in West Texas, highlighting the ongoing debate surrounding nuclear waste management.
Conclusion and Future Outlook
The future of small modular reactors in Texas remains uncertain, with experts drawing parallels to the historical development of artificial intelligence, which faced numerous setbacks before achieving success. As the state continues to explore the potential of SMRs, stakeholders are urged to consider the economic, regulatory, and environmental implications of this emerging technology. “Let’s talk in six months,” said Matt Kammer-Kerwick, a researcher at the University of Texas, indicating the evolving nature of this industry.
