Dow and X-energy seek permit for Texas nuclear project

MIDLAND, MI and ROCKVILLE, MD – Dow (NYSE:DOW), the $20.4 billion chemicals giant currently trading below its InvestingPro Fair Value, and X-Energy Reactor Company, LLC have taken a significant step towards the development of an advanced nuclear power project by submitting a construction permit application to the Nuclear Regulatory Commission (NRC). The proposed small modular reactor (SMR) project in Seadrift, Texas, aims to supply Dow’s manufacturing site with clean and reliable power and industrial steam.

This initiative is part of the U.S. Department of Energy’s Advanced Reactor Demonstration Program, which promotes the deployment of advanced reactors. The partnership between Dow and X-energy has led to the development of the Xe-100 advanced SMR, noted for its safety features and advanced fuel design. For Dow, which maintains a current ratio of 1.61 and carries $17.67 billion in total debt, this project represents a significant long-term investment in sustainable operations. The construction permit, which could take up to 30 months to be approved, is a crucial step toward starting construction later this decade, with operations expected to begin early the next decade.

Dow’s Seadrift site, which spans 4,700 acres, produces materials for various applications, including food packaging, medical products, and solar cell membranes. The advanced nuclear project is expected to significantly reduce Scope 1 and 2 emissions at the site, ensuring competitive advantage for its lifespan.

X-energy has been instrumental in advancing the Xe-100 SMR technology, securing approximately $1.1 billion in private capital since being selected by the DOE in 2020. The Long Mott Generating Station, upon completion, is anticipated to be the first grid-scale advanced nuclear reactor in North America serving an industrial site.

Both companies have expressed their commitment to the project, with Edward Stones, Dow’s business vice president for Energy & Climate, highlighting the importance of expanding access to nuclear energy in the U.S. J. Clay Sell, CEO of X-energy, emphasized the project’s role in fulfilling the vision of Congress and the DOE to position the U.S. as a leader in advanced reactor technology.

This news is based on a press release statement and does not include any endorsements of the claims.

In other recent news, Dow Inc. has issued $1 billion in new notes, comprising $400 million of 5.350% notes due in 2035 and $600 million of 5.950% notes due in 2055. This financial maneuver, managed by BofA Securities, Mizuho Securities, and SMBC Nikko Securities, provides Dow with additional capital and reflects its active management of its capital structure. Meanwhile, BofA Securities has downgraded Dow’s stock rating from Buy to Underperform, citing challenges such as trade barriers and increasing feedstock costs, alongside a significant reduction in EBITDA forecasts for 2025 and 2026. Concerns were also raised about Dow’s annual dividend, which is considered at risk due to a projected free cash flow shortfall.

JPMorgan has also downgraded Dow’s stock, moving from Overweight to Neutral, with a revised price target of $31. The firm noted weak demand in China and Europe as factors affecting Dow’s earnings. Additionally, CFRA downgraded Dow’s stock from Hold to Sell, adjusting the price target to $28 and expressing concerns over the company’s fundamentals and ongoing tariff issues. CFRA analysts have revised Dow’s 2025 EPS forecast downward and highlighted potential long-term risks due to tightening regulations around chemicals. These developments underscore the complex challenges facing Dow Inc. amid a volatile economic landscape.

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