January 23, 2025
Purdue University in Indiana, US has performed a landmark study to analyse the feasibility of adopting Small Modular Reactor (SMR) technology in Indiana, which was commissioned by the Indiana Office of Energy Development (IOED). Indiana currently has no nuclear reactors within its borders, and the state has shown an interest in introducing nuclear energy production following recent Indiana State Senate Bills 271 and 176, which give guidance and authorisation for SMR construction in retired coal plant sites. The key recommendation from the Purdue study is that the state of Indiana and Indiana energy stakeholders should ‘proceed with feasibility studies, build partnerships for SMR development, and prioritize stakeholder engagement to ensure SMRs are integrated smoothly and beneficially into the state’s energy portfolio’.
SMRs are compact nuclear reactors with flexible siting requirements, a small footprint and a modular design. They can be fabricated in factories and transported to the reactor site. They generate 24/7 dispatchable carbon-free electricity, with a typical capacity of up to 500 Megawatts of Electrical power (MWe). They have enhanced safety features compared to traditional nuclear power plants, with advanced passive systems such as natural circulation cooling and passive shutdown mechanisms, reducing the need for human intervention and enhancing operational safety. The power output of an SMR can be scaled up with additional modules on site. Advanced nuclear power has other benefits including the use of high-density fuels for long-term power, winter reliability, capacity factors above 90% and the potential for load-following capabilities. The study suggests that repurposing coal sites in Indiana could reduce SMR project costs by 7-26%, due to the reuse of existing site infrastructure, such as roads, water, grid connections, transmission lines, and existing workforce with relevant skills. The operating cost of an SMR is estimated to be ‘about half’ of the operating cost of an equivalent sized gas or coal plant. Coal-to-nuclear conversions mitigate the economic impacts of closing a coal plant and could help Indiana to meet its statewide expected electricity demand increase of 1.5-3% per year through 2030.
A site analysis was performed on Indiana’s coal plant sites, for the purpose of converting these to SMR technology, considering factors such as population density, seismic and geological stability, proximity to existing infrastructure, environmental impact considerations and retirement status. The study highlights that the technological demands of SMRs will require expertise in nuclear engineering, safety protocols and reactor operations, which will create, new high-paying job opportunities for Indiana residents, stating that SMR workers earn 18% more than coal plant workers on average, and an SMR site would have double the number of local jobs compared to coal plants with the equivalent capacity. The study has also considered training initiatives and educational pathways to ensure workforce reskilling in local educational establishments and reiterates the importance of community engagement in enhancing public perception, understanding and trust. The construction of a new 500 MWe SMR could create approximately 2,000 construction jobs over the 4-year construction period for Indiana, with a total local economic impact of more than $500 million per year of construction, and $352 million per year of operation, increasing the tax base in the state.
A Repowering project will require careful planning and consideration of safety standards and state regulatory frameworks. There are financial, regulatory and technical challenges which must be resolved, and the First-Of-A-Kind (FOAK) deployment in Indiana will be the costliest deployment. The report confidently concludes that Indiana should ‘position itself to take advantage of this emerging technology’, and that SMRs ‘present a viable opportunity for Indiana to transition to a cleaner, resilient, and diversified energy future’.
Sources
1. https://engineering.purdue.edu/NE/documents/IOEDSMRReport_Final.pdf
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