American Electric Power (Nasdaq: AEP) has announced a joint development agreement with advanced nuclear developer X-energy (Nasdaq: XE) to assess the feasibility of constructing a 960-megawatt (MW) small modular reactor (SMR) facility in Sullivan County, Indiana.
Tech giant Amazon is supporting the early-stage development through a funding agreement and intends to procure the facility’s electricity output under a long-term power purchase agreement, covering capital and operational costs should the project achieve a final investment decision.
The proposed development would utilize X-energy’s Xe-100 advanced SMR technology, comprising 12 individual 80 MW units configured in three four-unit blocks. The consortium is evaluating the former site of Indiana Michigan Power’s (I&M) Breed Generating Station, a decommissioned coal-fired power plant, as the preferred location.
Key operational and strategic elements of the initiative include:
- Baseload grid capacity: Adds 960 MW of carbon-free, continuous electricity to the regional power grid to meet expanding industrial and data center power demand.
- Capital protection structure: Commercial agreements ensure Amazon covers facility capital requirements and operational expenses, shielding utility customers from financial risk and rate hikes.
- Site redevelopment: Repurposes legacy thermal generation infrastructure in Sullivan County, leveraging existing transmission connections under the Indiana Advanced Nuclear Ready Communities Program.
- Long-term deployment: SMR technology is designed to operate for over 60 years, delivering localized economic benefits, skilled employment, and regional tax revenues.
Bill Fehrman, Chairman, President, and Chief Executive Officer of AEP, stated that the partnership combines nuclear operational expertise with private capital to support growing electricity demand while protecting affordability for existing utility customers.
J. Clay Sell, Chief Executive Officer of X-energy, added that deploying the Xe-100 reactor technology in Indiana provides a scalable, clean, and reliable power generation blueprint to support regional economic growth and energy security.
