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:

Comprehensive energy news coverage, updated nonstop

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 $/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

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.

EDF anticipates a 35 MW decrease in output for the Flamanville EPR between 2026 and 2031, citing a degraded performance level with no official technical explanation to date.
Nuclear Power Corporation of India Ltd has pushed the Bharat Small Reactors proposal deadline to 31 March 2026, aiming to expand private sector engagement in the captive nuclear energy project.
The Philippine government grants contractual advantages and priority dispatch to its first nuclear project, laying the groundwork for sustained sector development in the coming decades.
The merger between Terra Innovatum and GSR III Acquisition Corp. includes $130mn in proceeds aimed at supporting the industrial development of its SOLO™ micro-nuclear reactor.
US nuclear technology firm NANO Nuclear Energy has secured $400mn through an oversubscribed private placement, raising its cash position to approximately $600mn to accelerate development of its KRONOS MMR™ microreactors.
Global Nuclear Fuel, a GE Vernova-led alliance with Hitachi, plans the first use of its GNF4 boiling water reactor fuel in 2026, with full-scale production expected by 2030.
Arkansas has appointed Excel Services to analyse the economic, technological and logistical outlook of a new nuclear programme, with results expected within ten months.
Operator Belgoprocess has received authorisation to build a new facility to store waste generated from the ongoing decommissioning of Belgium’s nuclear reactors.
The British government has launched a consultation on the regulatory justification request for Rolls-Royce’s modular reactor, a decisive step towards its approval in the country’s nuclear market.
GVH and Samsung C&T join forces to accelerate international deployment of BWRX-300 small modular reactors, with a strong focus on Sweden and the consolidation of the nuclear supply chain.
The Swedish government aims to establish a right to compensation for operators if a political reversal leads to the early shutdown of nuclear plants, in a move to reduce investment risks.
Duke Energy adds a large nuclear reactor project to its 2025 plan for the Carolinas, anticipating electricity demand more than twice previous forecasts.
EDF has selected Arabelle Solutions to supply two complete turbine islands for the Sizewell C nuclear power plant, strengthening their industrial cooperation initiated at Hinkley Point C.
The Italian government has approved a bill granting the executive authority to regulate the return of nuclear energy, in line with European carbon neutrality and energy security targets for 2050.
Framatome and the French Alternative Energies and Atomic Energy Commission have commissioned a specialised industrial line in Jeumont for the manufacturing of nuclear components used in French Navy vessels.
Italian company Terra Innovatum is advancing the commercialisation of its SOLO micro-reactor, with two new partnerships and $42.5mn in funding as part of a merger with a listed company.
The Nurlikum Mining joint venture enters a new industrial phase with the launch of the South Djengeldi project, targeting annual production of 500 tonnes of uranium over ten years in Uzbekistan.
The containment structure over Chernobyl’s destroyed reactor lost power after a Russian strike, as Zaporizhzhia remains cut off from external electricity for over a week.
Uranium deliveries to U.S. civilian operators rose 8% in 2024, while the average price climbed to its highest level since 2012, according to the latest available data.
The Vice-Chairman of Russia’s Security Council believes more countries will develop nuclear weapons and generative AI technologies as a result of increasing public sector efforts.

All the latest energy news, all the time

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3$/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.