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Dow and X-Energy Submit Application for Texas Nuclear Project

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Dow Inc. (DOW - Free Report) submitted a construction permit application for a proposed advanced nuclear project in Seadrift, TX, along with X-Energy Reactor Company, LLC. The application has been submitted to the U.S. Nuclear Regulatory Commission (“NRC”). On receiving the permit and once Dow confirms its ability to deliver the project while achieving financial return targets, the construction will begin.

The proposed advanced small modular reactor (“SMR”) project is being developed by DOW’s wholly-owned subsidiary, Long Mott Energy LLC. This project will ensure the supply of safe, reliable and clean power, and industrial steam instead of existing energy and steam assets that are near end-of-life, to Dow's UCC Seadrift Operations manufacturing site. 

The project is backed by the U.S. Department of Energy's (“DOE”) Advanced Reactor Demonstration Program, which is designed to accelerate the deployment of advanced reactors through cost-shared partnerships with U.S. industry. 

X-Energy and DOW have been working together with NRC to ensure the safety profile of the Xe-100 advanced SMR through its advanced fuel design, passive safety features and state-of-the-art analysis techniques. In 2020, X-Energy was selected by the DOE to develop, license and build an operational Xe-100 advanced SMR and TRISO-X fuel fabrication facility. 

The company has completed the engineering and preliminary design of the nuclear reactor and started the development and licensing of a fuel fabrication facility in Oak Ridge, TN. Long Mott Generating Station is expected to be the first grid-scale advanced nuclear reactor deployed to cater to an industrial site in North America.

The DOW stock has lost 40% over the past year compared with the 18.3% decline in the industry.

Zacks Investment Research
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DOW’s Zacks Rank and Key Picks

DOW currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Ingevity Corporation (NGVT - Free Report) , Axalta Coating Systems (AXTA - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . While NGVT and AXTA sport a Zacks Rank #1 (Strong Buy) each at present, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $4.45 per share. NGVT’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 202.9%.

The Zacks Consensus Estimate for Axalta’s current-year earnings is pegged at $2.51 per share. AXTA’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 16.28%.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.95 per share. CRS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 15.7%. Its shares have soared 151.5% in the past year.

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