Amazon, AEP plan 960 MW nuclear study in Indiana

Modern nuclear plant cooling towers in Midwest landscape illustrating planned 960 MW nuclear study in Indiana

Key Points

01AEP and X-energy agreed to study a 960 MW advanced nuclear project in Indiana
02The plan calls for 12 Xe-100 small modular reactors of 80 MW each
03Amazon (AMZN) will fund development milestones and buy power under a long-term contract
04AEP says the agreements include capital protections for customers and investors

AEP, X-energy and Amazon outline Indiana nuclear plan

American Electric Power (AEP) has signed a joint development agreement with X-energy to evaluate the feasibility of constructing a 960-megawatt advanced nuclear energy project at the former Breed Generating Station site in Sullivan County, Indiana. The initiative targets redevelopment of a retired coal plant location into a new source of carbon-free power using small modular reactor technology.

Under the proposal, the plant would use 12 of X-energy’s Xe-100 small modular reactors, each rated at 80 megawatts. These units would be configured in groups of four, providing a combined capacity of 960 megawatts that would feed the regional grid if the project proceeds.

Project structure and Amazon’s long-term power role

Amazon (AMZN) is supporting the effort through a development funding agreement and plans to purchase the plant’s output under a long-term power contract. The companies state that this contract is intended to cover the facility’s costs and operations for the duration of the agreement, tying project revenues directly to Amazon’s (AMZN) electricity purchases.

The funding arrangement is described as milestone-based, aligning Amazon’s financial support with progress in the evaluation and development process. Amazon has highlighted that the collaboration is expected to help develop nearly a gigawatt of carbon-free power for the regional grid while the company pays the full costs associated with its contracted share.

Financial safeguards and risk management

AEP emphasizes that the joint development and funding agreements are structured to provide financial safeguards for both customers and investors. Chairman, president and CEO Bill Fehrman has characterized the arrangements as offering "all necessary capital protections and financial safeguards" viewed as essential for advancing any potential nuclear project.

By linking project development to defined funding mechanisms and a committed long-term power purchaser, the partners aim to create a framework that manages capital risk while the project remains in its feasibility phase. The current agreements focus on evaluation and do not represent a final construction decision.

Role of Xe-100 SMR technology and grid-scale ambitions

The Indiana proposal centers on X-energy’s Xe-100 advanced small modular reactor design, an 80-megawatt high-temperature gas-cooled reactor intended for flexible, grid-scale deployment. The planned 12-unit configuration would aggregate these modular units into a single plant approaching one gigawatt of capacity.

X-energy describes the project as a grid-scale partnership that builds on its collaboration with Amazon to add Xe-100 capacity to the U.S. grid. The Indiana effort is positioned as a feasibility-stage deployment that could expand the use of small modular reactors as a source of carbon-free electricity if the project moves beyond evaluation.

Key Takeaways

01The Indiana project remains in a feasibility phase, with current efforts focused on technical, financial, and contractual evaluation rather than committed construction.
02Amazon’s planned long-term power purchase and milestone-based funding are central to the project’s economic structure and risk mitigation approach.
03AEP is framing the agreement design as critical to protecting customers and investors while it explores advanced nuclear options using X-energy’s Xe-100 SMR technology.

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