Fermi America to Develop Next-Generation Hybrid Cooling Towers

Fermi America has signed a non-binding Memorandum of Understanding (MOU) with MVM EGI Zrt., a global leader in hybrid dry-wet cooling systems, to begin engineering and feasibility work on a next-generation cooling system for the company's planned 11-gigawatt private energy grid campus in West Texas.

The partnership, announced with the Texas Tech University System, represents a significant step in Fermi's efforts to deliver large-scale power while sharply reducing water demand.

Under the agreement, Fermi America and MVM EGI will collaborate on early-stage engineering for hybrid cooling towers designed to support Project Matador's 6 gigawatts of natural gas generation and four AP1000 nuclear units.

The system aims to reduce evaporative loss by more than 80 percent compared to conventional all-wet cooling towers. The companies will jointly evaluate cooling requirements, tower configurations, site constraints, and the long-term water savings expected under West Texas conditions.

The MOU outlines a sequence of milestones, from requirements definition to concept validation and full feasibility assessment, that will guide the final design. Construction of the first cooling tower is set to begin in January 2026, with the complete system scheduled for phased completion through 2034.

Fermi America CEO Toby Neugebauer said the project reflects a commitment to responsible resource management.

"Fermi isn't some out-of-town operation parachuting in. Our leadership is from West Texas -- we grew up on this dirt, and we care about the land and its resources," he said. "As promised, we're working with global innovators like MVM to ensure Project Matador complements the long-term water needs of the region, building something big, but doing it the right way."

MVM EGI CEO Peter Karpati emphasized the company's long-standing leadership in water-saving cooling technology.

"We are pleased to partner with Fermi America, the world's largest private utility, to ensure efficient and responsible cooling of their gas generation and nuclear power in the panhandle of Texas in line with our motto: less water, more power," Karpati commented.

With a 99-year lease agreement and billions of dollars committed, Fermi America says the project's success is directly tied to the long-term sustainability of the Ogallala Aquifer, a goal both companies say guides their partnership.