AEP and X-energy to evaluate 960 MW small modular reactor in Indiana

American Electric Power and X-energy agreed to evaluate a 960 MW small modular reactor project in Indiana, in the United States. The two companies announced their joint development agreement on Oct. 19.

The companies are evaluating an AEP-owned brownfield site at or near Indiana Michigan Power's former coal-fired Breed station. The retired Breed Generating Station in Sullivan County, Indiana, was identified as a potential project location.

The proposed plant would be configured in three groups of four reactors, each totaling 320 MW, for a combined 960 MW. If built, it could operate for more than 60 years, supplying electricity to the regional grid.

The plant would proceed to construction only if the development reaches a final investment decision.

Amazon will provide development funding for the proposed plant and intends to buy its electricity under a long-term contract. AEP said the agreement would cover the costs of the facility and its operations for the contract's duration, an arrangement intended to protect existing utility customers from the financial risks of developing new nuclear capacity.

The Indiana project would be the second project under the 2024 Amazon and X-energy collaboration. The two set a goal of adding more than 5 GW of new nuclear capacity to the US grid by 2039.

If the project goes ahead, it is likely to create about 1,000 construction jobs and 100 permanent jobs.