Keaton PetersA new study points to next-generation nuclear power technology as a solution to Indiana’s energy challenges. Small modular reactors (SMRs) could provide Indiana with a pathway to cleaner energy while creating thousands of jobs and generating significant economic impact, according to a new study released by Purdue University in partnership with the Indiana Office of Energy Development.
The study, which analyzed SMR technology applications, found that they could transform the state’s energy system. However, researchers emphasized that successful deployment would require balancing economic, regulatory and social considerations alongside technological development.
Electricity demand is projected to grow by 1.5 to 3% annually through 2030 — a significant increase from the previous decade’s 0.2% annual growth rate. With new data centers and manufacturing facilities, Indiana faces mounting pressure to develop reliable, carbon-free power generation. The state’s electricity mix has already undergone substantial shifts, with intermittent renewables growing from just 3% of generation in 2013 to 13% in 2023, while overall in-state generation has fallen by 26% over the past two decades.
SMRs, which typically generate less than 500 megawatts of electrical power each, could help fill this gap with advanced safety features and scalable designs that can be deployed at smaller sites than traditional nuclear reactors. The Department of Energy has identified Indiana as having the second-most coal plants suitable for conversion to nuclear power plants, with 8-10 sites meeting key criteria.
“This report underscores the transformative potential of SMRs, offering Indiana a pathway to a cleaner, resilient energy future,” said Seungjin Kim, head of Purdue’s School of Nuclear Engineering and lead principal investigator of the study.
The economic benefits could be substantial. Building a 500 megawatt SMR could create approximately 2,000 direct jobs during the four-year construction phase, injecting over $500 million annually into the state’s economy. Once operational, a facility of this size would employ about 140 full-time workers earning 18% more on average than coal plant workers, with an estimated annual economic impact of $352 million.
While the potential advantages are clear, the study identified several challenges that would need to be addressed. Construction costs remain high, especially for first-of-a-kind units. Supply chain stability represents another hurdle, with high-cost components requiring reliable networks that may necessitate multi-state or multi-company orders to maintain cost-effectiveness.
Public perception is another consideration. The study conducted focus groups and a statewide survey that revealed 46% of respondents either favor or strongly favor using SMR technology to produce electricity in the U.S. However, many residents expressed concerns about safety, with 63.4% citing accident risk as their top concern, followed by radioactive water production (55.7%) and onsite waste storage (41.3%).
Despite the challenges, the research suggests that moving early on SMR adoption could position Indiana to lead in developing the technology’s supply chain ecosystem. With the fourth-largest manufacturing output of any state at $289.5 billion, Indiana already possesses significant industrial advantages, including an existing nuclear manufacturing facility in Mount Vernon operated by BWXT, which produces components for naval nuclear reactors.
Repurposing coal sites for SMR deployment could help mitigate environmental impacts associated with coal plant operations while reducing Indiana’s carbon footprint. According to the Department of Energy’s 2023 Liftoff report on the advanced nuclear sector, converting these sites could reduce SMR project costs by 7-26% due to existing infrastructure, transmission lines, and available space.
The study’s recommendations include proceeding with detailed feasibility studies, building partnerships for SMR development, and prioritizing stakeholder engagement to ensure SMRs are integrated smoothly and beneficially into the state’s energy portfolio.
Image by Markus Distelrath from Pixabay
