A new Purdue University-led study prepared for the Indiana Office of Energy Development explores the feasibility and potential impact of implementing small modular reactors in the state.
It also outlines opportunities for Indiana to address key challenges with the deployment of this technology both within the state and nationwide.
The study states that SMRs, which are smaller than existing nuclear power plants and could be faster and less expensive to build, are a viable option for 24/7 carbon-free electricity in Indiana.
SMRs also may benefit Indiana economically. The study estimates that the construction of each SMR plant could create approximately 2,000 jobs and their operation could employ 140 full-time workers. Workers at SMR plants could potentially earn 18% more than they would at coal plants, amounting to $352 million annually, which is double that of a similarly sized coal plant.
Indiana’s electricity generation mix has changed over the past 10 years with the addition of wind and solar, but the state currently has no nuclear power plants to provide a continuous source of renewable energy.
IOED selected Purdue last year to conduct an Indiana-specific study to better understand SMR technology, the challenges and opportunities of its deployment, and its applicability to the state.
The findings will serve as a resource for the IOED, aligning with its mission to provide comprehensive energy planning and policy development for Indiana that is affordable, stable, reliable, and inclusive of a diverse and balanced generation mix.
The study was a collaborative effort involving Purdue’s School of Nuclear Engineering, Purdue’s Administrative Operations, Purdue Polytechnic Institute, Purdue Extension Community Development, Purdue Center for Regional Development, Ivy Tech Community College of Indiana, the Energy Systems Network and Argonne National Laboratory.
While SMRs could add value to Indiana, the study points out several challenges with SMRs being a new technology not yet implemented anywhere in the U.S., such as high construction costs and the need for a stable supply chain. Other important considerations include complying with regulatory frameworks on both the state and federal level, meeting environmental and safety standards, growing a workforce, and increasing residents’ awareness of SMRs through community
The study identifies ways Indiana’s strengths could tackle these challenges. Among those resources are retired coal plants that SMRs could replace and Indiana’s strong manufacturing output, which is the fourth largest of any state. If Indiana becomes an early adopter of SMRs, it would have the opportunity to establish itself as a supplier or manufacturer of nuclear power plant equipment in a nationwide supply chain.
“We’ve studied SMRs to understand how our university might someday operate with clean nuclear energy,” said Ryan Gallagher, associate vice president of Purdue Administrative Operations and co-PI for the project. “One cost consideration is that operation of a nuclear plant tends to be about half the cost of operation of a similarly sized gas or coal plant. Coupled with the fact that Indiana is near the top of the list of states having sites compatible with a coal-to-nuclear transition, it seems increasingly likely that our state and our university can benefit from deployment of SMRs here in Indiana.”
The study authors list eight Indiana coal plants that could be considered for SMR installation, as noted in the U.S Department of Energy (DOE) 2022 Coal-to-Nuclear report. Repurposing these coal sites and their workforce could reduce SMR project costs by 7%-26%, according to the DOE’s 2023 Liftoff report on the advanced nuclear sector, and provide a steady, dispatchable source of low-carbon energy to meet an expected electricity demand increase across the state of 1.5%-3% per year through 2030.
Indiana also has the benefit of several academic institutions that could meet workforce needs for SMRs. The study points out how Purdue’s School of Nuclear Engineering, Purdue Polytechnic Institute and Ivy Tech Community College could combine resources to prepare students for immediate employment in the nuclear sector and foster continuous professional development.
Examples include specialized nuclear science coursework and training in reactor operation and technician skills.
