American Electric Power, Amazon and X-energy are exploring development of a 960-MW advanced nuclear project at a former coal plant site in Sullivan County, Indiana, the companies announced Monday.
If the project gets built and enters commercial operation, Amazon would purchase the power under a long-term contract that covers the costs of the facility and its operations for the duration of the arrangement. The facility would utilize 12 of X-energy’s Xe-100 small modular reactors, each capable of producing 80 MW. The companies did not give details around the project’s timing.
The trio is evaluating the former site of AEP utility Indiana Michigan Power’s Breed Generating Station. Sullivan County participates in the Indiana Advanced Nuclear Ready Communities Program, which is administered by the Indiana Office of Energy Development and identifies communities that have taken “measurable steps” to welcome advanced nuclear development.
Indiana Gov. Mike Braun said the project could help strengthen the state’s grid and “position Indiana as a national leader in advanced nuclear energy.”
State regulators approved large load interconnection rules last year, accepting a pact offered by Indiana Michigan Power, Amazon Data Services, Google, Microsoft and other parties. Driven by new large loads, the utility expects peak load in Indiana will jump to more than 7,000 MW by 2030 from 2,800 MW, according to the decision.
The joint development plan announced Monday brings together resources to “help meet unprecedented growth in energy demand with reliable baseload power while protecting affordability for existing customers,” AEP Chairman, President and CEO Bill Fehrman said in a statement.
The agreements with Amazon and X-energy will provide “all necessary capital protections and financial safeguards that we have said are essential for any potential nuclear project to move forward,” Fehrman added.
The deal is Amazon’s second nuclear announcement in as many weeks. On Sept. 30, Amazon announced it signed a 20-year, 690-MW power purchase agreement with Constellation Energy to expand and improve the Calvert Cliffs nuclear plant in Maryland.
Amazon is working towards a net-zero carbon goal across its operations by 2040, said Josh Weissman, the company’s vice president of data center infrastructure capacity delivery.
“We’re looking to develop nearly a gigawatt of carbon-free power for the regional grid and pay our full costs without passing them to others,” Weissman said. The project would also create jobs and generate tax revenues for the state “for decades to come.”
