AEP and Amazon explore a 960-megawatt nuclear project in Indiana
AEP and reactor developer X-energy have agreed to study a proposed nuclear plant at a former coal site in Indiana, with development funding from Amazon. The proposal involves 12 small reactors providing a combined 960 megawatts. Amazon intends to purchase the electricity through a long-term agreement, while construction and operation depend on subsequent development and investment decisions.
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A former coal site enters development studies
American Electric Power, the US electricity utility known as AEP, announced on 19 October that it had agreed with reactor developer X-energy to evaluate a nuclear project in Indiana. Amazon will provide development funding. The proposed 960-megawatt facility would occupy the former Breed coal plant site in Sullivan County, Indiana, where the partners are exploring whether the project is viable.[1], [2]
The site belongs to Indiana Michigan Power, AEP’s electricity subsidiary. The joint development agreement covers feasibility work. The parties have not announced a final investment decision, a construction start or a firm date for the completed facility to enter service.[1]
Twelve small reactors are proposed
The design under consideration consists of 12 Xe-100 reactors supplied by X-energy. Each reactor is rated at 80 megawatts, with the units envisaged in groups of four. The proposed facility would have a total capacity of 960 megawatts.[1]
AEP brings its power generation and nuclear operating experience to the partnership, while X-energy provides the proposed reactor technology. X-energy chief executive J. Clay Sell discussed that technology’s role in the project. The companies did not specify a total construction budget.[1]
Amazon envisages a long-term power contract
Amazon intends to enter a long-term agreement to purchase the plant’s electricity. The arrangement described by the companies would cover the facility’s operating costs for the contract’s duration. Amazon executive Josh Weissman, who works on data centre infrastructure, discussed long-term arrangements supporting the company’s power requirements alongside its contribution to project development.[1]
AEP chairman and chief executive Bill Fehrman emphasised financial safeguards for the utility and its customers. Amazon likewise described an approach aimed at keeping the project’s costs from being passed to other electricity customers.[1]
