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X-Energy and the Role of Advanced Nuclear in Hydrogen Production

Introduction


At the Foresight Hydrogen Conference 2025, Stephen Coates, Commercial Manager at X-Energy, delivered a compelling presentation on the integration of advanced nuclear technology with hydrogen production. As hydrogen scales up to meet industrial and energy transition demands, X-Energy's high-temperature gas-cooled reactor (HTGR) technology is positioned to play a critical role in providing clean, efficient, and scalable hydrogen production.



Nuclear and Hydrogen: A Strategic Integration


HTGR Technology as a Hydrogen Enabler


X-Energy’s Generation IV high-temperature gas-cooled reactors (HTGRs), specifically the XE-100 reactor, are designed to provide sustainable and efficient energy solutions for hydrogen production. Unlike conventional reactors, HTGRs operate at significantly higher temperatures, making them ideal for producing hydrogen through high-temperature electrolysis (HTE) and thermochemical processes.


Key advantages of HTGRs for hydrogen production:


  • High-Temperature Efficiency: The 750–950°C output temperature enhances the efficiency of solid oxide electrolysis (SOEC), reducing the electricity required per kilogram of hydrogen produced.

  • Scalable Modular Deployment: The 200MW modular XE-100 reactors can be deployed in clusters to match industrial demand.

  • Decarbonisation of Industrial Sectors: Beyond hydrogen, HTGRs provide high-temperature steam for industrial processes, replacing fossil fuels in industries such as chemicals, steel, and ammonia production.


X-Energy's Commercial Strategy


X-Energy is actively engaging with industrial partners and energy developers to deploy HTGRs as a reliable, carbon-free hydrogen production method. The company has outlined a three-phase approach to scaling nuclear-powered hydrogen production:


  1. Pilot Deployment (2025-2030):

    • First XE-100 reactor projects under development in partnership with Dow Chemicals in the U.S.

    • Collaboration with Cavendish Nuclear in the UK for feasibility studies on integrating nuclear with hydrogen hubs.

  2. Mid-Term Scaling (2030-2040):

    • Deployment of multi-reactor clusters to support hydrogen demand for industrial hubs.

    • Expansion into Europe and Asia, leveraging government hydrogen mandates.

  3. Long-Term Market Expansion (2040+):

    • 40+ reactors targeted for global hydrogen hubs.

    • Development of next-generation nuclear-hydrogen technology, including thermochemical hydrogen production.


Challenges and Policy Considerations


Regulatory and Public Perception Barriers


X-Energy emphasized the need for regulatory streamlining to accelerate the deployment of nuclear-hydrogen projects. The UK government is currently revising its nuclear site selection policy (EN-6 to EN-7) to accommodate advanced reactor technologies. However, key challenges remain:


  • Permitting and Licensing: The UK’s current nuclear approval timeline is too slow to meet 2030 hydrogen targets.

  • Public Perception & Safety: Educating stakeholders on the safety and benefits of HTGRs is critical for public acceptance.

  • Integration with Hydrogen Infrastructure: Hydrogen pipelines and storage systems must evolve alongside nuclear deployment to ensure supply chain efficiency.


Investment and Market Growth


X-Energy is advocating for government-backed funding mechanisms similar to the Contracts for Difference (CfD) model in offshore wind, which would provide price stability for nuclear-generated hydrogen.


Potential investment enablers include:


  • Hydrogen Purchase Agreements (HPAs) to secure long-term offtake deals.

  • Joint ventures with hydrogen industrial clusters to accelerate deployment.

  • Public-private partnerships (PPPs) to de-risk early-stage projects.


Conclusion & Future Outlook


X-Energy’s HTGR technology represents a transformative opportunity to integrate nuclear power with large-scale hydrogen production, offering a carbon-free, high-efficiency solution for industrial decarbonisation.


With policy support, regulatory alignment, and investment incentives, nuclear-powered hydrogen can play a pivotal role in the UK’s hydrogen economy. As X-Energy advances its projects, collaboration between government, industry, and energy developers will be key to ensuring a secure and scalable hydrogen supply for the future.




 
 
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