AEP, Amazon, and X-energy to study nuclear plant in Indiana

American Electric Power (NASDAQ: AEP) announced a joint development agreement with X-energy (NASDAQ: XE) to evaluate the feasibility of a 960-megawatt small modular reactor project at a former coal plant site in Sullivan County, Indiana. Amazon is supporting the project through a separate funding agreement.

The proposed facility would use X-energy's Xe-100 reactor technology, consisting of 12 units of 80 megawatts each, configured in groups of four. The companies are evaluating the former site of Indiana Michigan Power's Breed Generating Station as a potential location.

If the project proceeds to construction and commercial operation, Amazon intends to purchase the power under a long-term contract, covering the costs of the facility and its operations for the duration of the agreement. AEP stated the development and funding agreements are designed to provide financial safeguards for its customers and investors.

AEP Chairman, President and CEO Bill Fehrman said the agreements with Amazon and X-energy "will provide all necessary capital protections and financial safeguards" that the company called essential for any potential nuclear project to move forward.

Amazon VP of Data Center Infrastructure Capacity Delivery Josh Weissman said the collaboration would allow the company to develop "nearly a gigawatt of carbon-free power for the regional grid" while paying its full costs without passing them to others.

Sullivan County recently joined Indiana's Advanced Nuclear Ready Communities Program, which supports the development of advanced nuclear projects in participating counties.

According to the press release, if the project advances beyond the development phase, it is expected to create jobs, expand the local tax base, and operate for more than 60 years. The companies said they plan to work with local leaders, residents, regulators, and other stakeholders as the project moves forward. No timeline for a final investment decision was disclosed.

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