US-based X-energy Reactor Company and power utility Talen Energy Corporation have signed a letter of intent (LOI) to assess deploying X-energy’s XE-100 small modular reactors (SMRs) in Pennsylvania and across the PJM Interconnection Regional Transmission Organisation market. PJM (Pennsylvania-New Jersey-Maryland) is the largest independent power system operator in the US managing the grid and wholesale energy markets for all or parts of 13 states and Washington DC.
X-energy and Talen will explore opportunities to deploy three or more four-unit XE-100 plants to add clean baseload capacity to help support reliability and meet growing energy demand from onshoring of manufacturing, data centres, and electrification.
X-energy’s XE-100 is an 80 MWe high-temperature gas-cooled reactor that can be deployed as a four to 12-unit plant, with each reactor capable of coming online independently upon completion. The XE-100’s design also enables the efficient use of air-cooling systems, significantly reducing overall water usage, and offering greater siting flexibility compared with conventional reactors. It is designed to produce 200 MWt of 565°C steam, making it suitable for other power applications, including mining and heavy industry. The XE-100 uses tri-structural isotropic (TRISO) particle fuel, which has additional safety benefits because it can withstand very high temperatures without melting.
Under the agreement, X-energy and Talen plan to conduct early-stage project development activities, including feasibility studies, site evaluations, and a project execution framework. Although specific siting parameters have yet to be finalised, the companies intend to assess opportunities to transition fossil-fired generation to nuclear power through X-energy SMRs, leveraging established infrastructure, transmission connectivity, and workforce resources.
Texas-based Talen Energy operates 12 power plants (13.1 GWe) across four states – Maryland, Montana, Ohio and Pennsylvania, including the 2,200 MWe of nuclear power (the Susquehanna Steam Electric Station in Pennsylvania). Five ageing power plants still use coal while some have already been converted to use gas. Talen intends to be a coal-free generator by 2029 by transitioning the others to natural gas or retiring the units entirely.
The Montour Power Plant in Washingtonville, Pennsylvania, is considered the most suitable of Talen Energy’s ageing coal-fired assets for future SMR deployment. The plant had effectively been converted from coal to gas by 2025. The site offers existing grid connections and a switchyard, which can save an estimated $100m in capital costs compared with building on a new greenfield site. The site possesses established water rights and cooling infrastructure, both critical for the thermal management of nuclear reactors. Also, the site is strategically positioned to meet the high electricity demands of nearby AI data centres and regional industrial hubs.
In addition, in June 2025, Talen signed a long-term agreement to supply 1,920 MWe of electricity from its Susquehanna NPP to support Amazon Web Services data centres. At that time, Talen said that together with Amazon it would also explore building new SMRs “within Talen’s Pennsylvania footprint”.
“Talen believes that future power demand needs an all-of-the-above supply approach, and this includes new nuclear technology. Commercial nuclear energy is a proven carbon-free energy source that provides for energy independence and diversification,” said Talen President Terry Nutt. “We look forward to working with X-energy as part of our broader commitment to Powering the Future.”
X-energy says it is currently developing more than 11 GWe of new nuclear capacity in the US and UK. In Texas, X-energy and Dow are advancing a proposed four-unit plant to power industrial processes under the Department of Energy’s Advanced Reactor Demonstration Program. This is expected to be followed by Energy Northwest’s Cascade Advanced Energy Facility, the first of several X-energy and Amazon projects intended to deploy at least 5 GWe of new nuclear by 2039, as well as a 6 GWe commitment from Centrica for the UK.
“Our agreement with Talen is an important step forward to strengthen baseload capacity and meet growing energy demands in the PJM market,” said Dinkar Bhatia, X-energy’s Chief Commercial Officer. “Our small modular reactor technology is uniquely suited to meet these demand opportunities reliably and safely, with the scalability and flexibility to deploy across a range of project sites.”
Meanwhile, X-energy has submitted a draft registration statement to the US Securities & Exchange Commission related to the proposed initial public offering of X-energy’s Class A common stock. X-energy intends to list on the Nasdaq Global Select Market under the symbol XE. JP Morgan, Morgan Stanley, Jefferies, and Moelis & Company are acting as the lead joint book-running managers for the offering. Latham & Watkins LLP is acting as an advisor regarding the offering’s listing on the Nasdaq Capital Market. Skadden, Arps, Slate, Meagher & Flom LLP is acting as counsel to the underwriters.
