X-energy Reactor Company and Talen Energy Corporation (NASDAQ: TLN) signed a letter of intent to evaluate deploying X-energy's Xe-100 small modular reactors in Pennsylvania and across the PJM Interconnection market, according to a press release statement.

The companies plan to explore opportunities to deploy three or more four-unit Xe-100 plants to add baseload capacity for growing energy demand from manufacturing, data centers, and electrification. The agreement includes conducting feasibility studies, site evaluations, and developing a project execution framework.

X-energy's Xe-100 is an 80-megawatt high-temperature gas-cooled reactor deployed as a four to twelve-unit plant. Each reactor can come online independently upon completion, allowing capacity to be phased in one unit at a time. The design uses air-cooling systems to reduce water usage compared to conventional reactors.

"Our agreement with Talen is an important step forward to strengthen baseload capacity and meet growing energy demands in the PJM market," said Dinkar Bhatia, X-energy's Chief Commercial Officer.

Talen President Terry Nutt stated, "Talen believes that future power demand needs an all-of-the-above supply approach, and this includes new nuclear technology."

X-energy is developing more than 11 gigawatts of new nuclear capacity across partnerships in the United States and United Kingdom. Projects include a four-unit plant with Dow in Texas under the U.S. Department of Energy's Advanced Reactor Demonstration Program, at least 5 gigawatts with Amazon by 2039, and 6 gigawatts with Centrica for the United Kingdom.

Talen operates approximately 13.1 gigawatts of power infrastructure in the United States, including 2.2 gigawatts of nuclear power.