Federal Grants: Two Small Modular Reactor Projects Under Discussion

American Electric Power is pursuing funding to explore the installation of small modular reactors in Indiana and Virginia. An initiative with significant economic and political implications.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

American Electric Power (AEP) has officially submitted two grant applications to the United States Department of Energy (USDOE). The goal is to fund preliminary studies for the potential installation of Small Modular Reactors (SMRs) at sites in Indiana and Virginia. These projects are part of a national strategy to diversify energy sources and strengthen energy independence.

The Rockport site, located in Spencer County, Indiana, has been identified as a strategic area for SMR development. This initiative relies on collaboration with the Tennessee Valley Authority (TVA) and GE Hitachi Nuclear Energy, the provider of the BWRX-300 technology. A $50 million grant is being sought to conduct safety analyses, impact studies, and necessary community consultations for the permitting process.

A Supportive Legislative Framework

The state of Indiana recently adopted legislative measures facilitating the integration of nuclear technologies within its borders. This political orientation underscores support for projects aimed at ensuring an energy transition while maintaining the regional economy. Meanwhile, the Joshua Falls site in Virginia is also under active exploration as part of a $35 million grant request by Appalachian Power.

The choice of these sites reflects a strategic approach: prioritizing areas with existing industrial or energy infrastructure and benefiting from local political support. These projects include active dialogue with communities and local authorities, aligning with regulatory requirements for transparency and environmental impact.

Economic and Energy Challenges

SMRs represent a transformative potential for the energy sector, offering flexible production capacity tailored to diverse local needs. In the current context of high energy demand, these projects are positioned as solutions for ensuring reliability and economic competitiveness.

However, the initiative raises significant political and industrial questions. The funding of SMRs relies heavily on public subsidies and alignment with federal priorities, particularly under the USDOE’s Generation III+ program, which is backed by $900 million in grants. This approach has sparked debates about the distribution of public investment in energy infrastructure and its long-term impact.

Responding to Growing Demand

Statements from local representatives highlight the expected economic benefits, particularly in terms of job creation and tax revenue. At Rockport, the ordinance adopted by local authorities in favor of new energy projects underscores the importance of strong political support to ensure the viability of such initiatives.

In Virginia, the process remains in its early stages, with public consultations aimed at evaluating technological and economic opportunities. Final decisions will depend on local political orientations and alignment with the state’s energy goals.

A Long-Term Strategic Vision

These projects are part of a broader dynamic of evolving the U.S. energy mix. They reflect the tensions between the need to modernize energy infrastructure and the challenges posed by regulation and public policies.

While SMRs offer promising advantages in terms of flexibility and efficiency, their development hinges on a complex balance between public investments, industrial partnerships, and local community support. These factors will play a decisive role in the realization of AEP’s nuclear ambitions and their ability to sustainably integrate into the national energy landscape.

The Tennessee Valley Authority partners with ENTRA1 Energy to develop up to 6 gigawatts of modular nuclear capacity, in an unprecedented project supporting energy growth across seven U.S. states.
A report by the International Atomic Energy Agency puts Iran’s 60% enriched uranium at 440.9 kg before Israeli and U.S. strikes, while the agency’s access to enrichment sites has remained suspended since the operations.
US-based Westinghouse has signed six industrial agreements in the UK to supply critical components for its AP1000 and AP300 nuclear projects in Britain and abroad.
NANO Nuclear Energy receives direct funding from the US Air Force innovation branch to assess the integration of its KRONOS MMRâ„¢ microreactor at the Washington D.C. military base.
EDF extends the operation of Heysham 1 and Hartlepool by one year after favourable safety inspections, ensuring continuity of nuclear production and safeguarding more than 1,000 jobs.
Russian nuclear group Rosatom has confirmed advanced discussions with India and Turkey to launch new power plants, including advanced and floating reactor technologies.
The International Atomic Energy Agency has identified uranium particles of industrial origin in samples taken from a Syrian site suspected of hosting an undeclared nuclear reactor.
Norwegian authorities begin the first regulatory phase for two modular nuclear reactor projects, marking a strategic step in the national review of the potential role of nuclear energy in the country’s power mix.
With eleven reactors under construction and major projects such as Jaitapur, India is preparing a nuclear build-up that could place it among the world’s five leading nations in the sector.
France and Germany have validated a joint energy roadmap, including a commitment to the non-discrimination of nuclear energy in European financing.
Russia and Iran seek to strengthen their nuclear cooperation as the E3 activates the sanctions mechanism against Tehran, reigniting tensions over compliance with the 2015 Vienna agreement.
US-based Natura Resources has secured strategic funding and key permits for its MSR-1 nuclear reactor, backed by public funds and enriched fuel allocation from the Department of Energy.
The United States and South Korea have agreed to initiate discussions on reprocessing spent nuclear fuel, marking a potential strategic shift in the long-standing bilateral agreement.
The United States Nuclear Regulatory Commission has granted a 40-year extension for the AP1000 reactor design certification, supporting its long-term construction domestically and deployment abroad.
Nano Nuclear Energy has signed a memorandum of understanding with Dioxitek, Argentina’s only uranium supplier for nuclear fuel, to assess the development of local conversion and enrichment capacities.
Stockholm plans to restart uranium extraction by lifting the 2018 ban, aiming to secure strategic supply chains and support domestic nuclear electricity production.
The French Atomic Energy Commission has signed a letter of intent with start-up Calogena to study the installation of a 30 MW thermal small nuclear reactor at its Cadarache site.
A Guidehouse Research report anticipates strong growth in the global nuclear modular reactor market, with revenues rising from $375.8 million in 2025 to $8.1 billion in 2034.
KHNP, Doosan, POSCO and Samsung C&T join US partners to develop 5 GW of modular reactors, expand uranium enrichment and build an 11 GW energy complex in Texas.
The US Department of Energy is creating an industrial consortium to accelerate domestic enriched uranium production and reduce reliance on foreign imports ahead of the Russian supply ban in 2027.

Log in to read this article

You'll also have access to a selection of our best content.