X-energy shares rose Monday after the company announced a joint development agreement with American Electric Power and Amazon to study a proposed small modular reactor project in Indiana.
The proposed facility would use 12 of X-energy’s Xe-100 reactors, each rated at 80 megawatts, for a combined capacity of 960 megawatts. X-energy and AEP are evaluating a site near the former Breed Generating Station, a retired coal plant in Sullivan County, Indiana.
Amazon will provide project-development funding and would become the first customer to purchase electricity if the plant is built and begins operating. The companies said a long-term power contract would cover the facility’s construction and operating costs during the contract period.
The Indiana project is the second commercial deployment covered by Amazon and X-energy’s broader collaboration, which targets more than 5 gigawatts of new U.S. Their first announced grid-scale project is the Cascade Advanced Energy Facility in Washington state.
AEP said the development agreements include financial safeguards intended to protect its customers and investors during the feasibility phase. The utility also said the project is being evaluated against affordability concerns for Indiana Michigan Power customers and the risks associated with developing new nuclear generation.
The proposed Xe-100 is an 80-megawatt, high-temperature gas-cooled reactor that uses helium coolant and TRISO fuel. The companies describe the technology as a source of reliable, carbon-free electricity, but the Indiana plant remains a proposal subject to feasibility work, additional agreements, financing, site evaluation, licensing and regulatory approvals.
Amazon said the facility could create more than 1,000 construction jobs and more than 100 permanent positions. No construction schedule was announced, and the companies have not made a final investment decision.