March 31 (Reuters) - Chemical firm Dow and

X-energy Reactor Company have submitted a construction permit

application to the Nuclear Regulatory Commission (NRC) for a

proposed nuclear project in Seadrift, Texas, the companies said

on Monday.

WHY IS IT IMPORTANT

The U.S. nuclear industry, which has faced expansion

challenges in recent decades, is witnessing a surge in demand on

the back of power-intensive data centers and the growing shift

towards alternative, low-emission energy sources.

Companies have started adopting small modular reactors (SMR)

which are more compact and cost-effective compared to full-sized

reactors that often take decades to build.

The companies said the project is supported by the U.S.

Department of Energy's (DOE) Advanced Reactor Demonstration

Program (ARDP), which aims to accelerate the deployment of

advanced reactors through cost-shared partnerships with U.S.

industry.

CONTEXT

Dow's proposed advanced SMR project, developed by its unit

Long Mott Energy, aims to provide clean power and industrial

steam to Dow's UCC1 Seadrift operations manufacturing, replacing

its existing energy and steam assets.

Dow's Seadrift site manufactures more than 4 billion pounds

of materials per year used across a wide variety of applications

including food packaging, preservation and footwear, among

others.

The companies said the project could begin construction

later this decade and start up early next decade, with the

permit approval taking up to 30 months.