I&M applies for exploratory grant for small nuclear reactor in Rockport
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ROCKPORT, Ind. - As state legislators debate whether to move forward with tax credits to encourage the development of small modular nuclear reactors, one Midwest utility wants to pioneer the technology in Indiana.
Indiana Michigan Power this month announced it is applying for a $50 million grant from the U.S. Department of Energy to begin officially exploring a small modular reactor, SMR, at I&M’s current coal plant in Rockport.
The grant would let I&M begin the Early Site Permitting process, which includes some design work, safety inspections and community engagement. I&M is based in Fort Wayne and is owned by American Electric Power.
The grant application marks a major first step to developing a new nuclear power plant in Indiana—a state where there are currently no nuclear generating stations. However, even if the federal government awards the grant, it will likely take a decade and billions of dollars before any SMR comes online.
I&M is no stranger to nuclear technology as it has operated the Cook Nuclear Plant in southwest Michigan since the 1970s. The utility’s marketing director, Stephanny Smith, said the Cook plant generates 53% of the utility’s total energy output.
“Nuclear is important to us because it’s a generally safe source of energy. It’s consistent—we don’t need the sun to be shining, we don’t need the wind to be blowing,” she said.
The Cook plant generates just under 2,300 megawatts. By contrast, the Rockport SMR would generate 300 megawatts. But, the idea of SMRs is taking off among power companies precisely because of their smaller size since making the reactors smaller means they’re cheaper and can be built in more areas.
A study published last fall by Purdue University lauded SMRs, as “24/7 dispatchable sources” of carbon-free electricity that have the capacity to meet the state’s growing energy needs.
Despite that promise, there are currently no operational SMRs in the U.S. or Canada.
Smith said I&M’s 4,500-acre, coal-burning plant in Rockport is an ideal site for an SMR because it has a lot of pieces already in place, such as land, pre-existing facilities, supply chain connections and a local workforce.
“It’s the perfect site for us potentially because we have the existing infrastructure that we need to generate and deliver power. For us it really makes sense,” Smith said. “We have the major power plant, we have the skilled labor.”
If it receives the grant, I&M says it will partner with GE Hitachi Nuclear Energy and the Tennessee Valley Authority to further develop the project. There are still multiple layers of approvals the project would need before construction.
Speaking in front of lawmakers last week, I&M President Steve Baker estimated the project could cost somewhere between $2.5 billion and $3 billion. He said the costs for the first few SMR plants will likely be high and then come down as companies learn how to build more efficiently.
For Baker there’s an urgency to get the ball rolling on SMRs. He said if Indiana wants to keep attracting large data centers to the state, there needs to be a reliable power supply.
“If our customers are going to operate their facilities around the clock, you need 24/7 generation resources in place to do that,” Baker said.
House Bill 1007 and Senate Bills 423 and 424 are currently advancing through the Indiana legislature. Together the bills would give utility companies tax credits to develop SMRs. The bills would also let utility companies recoup the costs of SMR projects by raising rates.
South Spencer County School Corp. Superintendent Brad Schneider and Spencer County Commissioner Jim Seiler both testified in front of lawmakers last week that they support the project.