Port of Victoria project is advancing toward a major construction milestone as Texas prepares for its first small modular reactor grid application. Blue Energy has applied for interconnection with the Electric Reliability Council of Texas (ERCOT). The application covers up to five 300MW nuclear reactors.

The proposed development could deliver 1.5GW of nuclear capacity to support rising electricity demand from artificial intelligence infrastructure. The wider gas-plus-nuclear development could reach 2.5GW and cost more than $6 billion. The grid application gives the development a new construction dimension beyond its ongoing federal nuclear licensing process.

Port of Victoria Project advances nuclear construction

The Port of Victoria project will use GE Vernova Hitachi Nuclear Energy’s BWRX-300 small modular reactor technology. Each reactor provides approximately 300MW of generating capacity.

Blue Energy plans to install up to five reactors, producing approximately 1.5GW collectively. The first reactor could enter service in 2033, according to the latest reported schedule.

However, construction would begin with natural gas generation before the nuclear units enter operation. The development includes approximately 1GW of gas-fired generation using two GE Vernova 7HA.02 turbines.

ERCOT data indicates the gas units could begin operating in 2030 and 2031. Blue Energy has already submitted an interconnection application for those gas systems.

The strategy creates a staged construction pathway toward nuclear generation. It also allows shared balance-of-plant infrastructure to support both generation technologies.

Port of Victoria Project enters federal construction review

The Port of Victoria project reached another major milestone in September after Blue Energy filed the first construction permit application portion. The submission went to the U.S. Nuclear Regulatory Commission.

The application covers the development’s first BWRX-300 reactor. It also requests permission for limited construction activities at the Texas site.

Those activities include deep foundation and shaft works for the first reactor. Blue Energy also submitted an environmental report covering approximately 300 pages.

The company expects to submit the remaining application during the second half of 2027. That timing follows one calendar year of required site-specific data collection.

Blue Energy and GE Vernova Hitachi also signed an agreement in August covering engineering, licensing and safety analysis. The agreement supports the proposed 2.5GW gas-plus-nuclear plant.

The project remains subject to a final investment decision targeted for 2027. Meanwhile, Blue Energy has retained Société Générale to support project financing arrangements.

Texas small reactor construction targets data center demand

The nuclear development will support electricity demand associated with Crusoe’s planned data center infrastructure. The development reflects growing pressure to secure reliable power for artificial intelligence facilities.

The Port of Victoria previously granted Blue Energy an option covering approximately 70 acres. The agreement supports feasibility studies and due diligence for the proposed nuclear facility.

The initial phase was previously estimated at $2.4 billion in Victoria’s economic development reporting. However, broader project estimates now place the complete development above $6 billion.

The development would add new nuclear capacity to a state already operating four conventional reactors. Those facilities provide more than 5GW across South Texas Project and Comanche Peak.

Meanwhile, the first U.S. BWRX-300 construction permit has already been issued for Tennessee Valley Authority’s Clinch River project. That milestone gives the Texas development an established regulatory reference point.

The Texas nuclear construction landscape is also attracting private investment in smaller reactor technologies, with Last Energy advancing its own development plans in the state after securing fresh funding for its proposed facility. That momentum underscores the growing competition to deliver scalable nuclear power for Texas’ rapidly expanding electricity demand.