Constellation Energy Signs 20-Year Nuclear Power Deal With Meta, Stock Surges

Constellation Energy Corp CEG and Meta Platforms META announced on Tuesday that they had inked a 20-year power purchase agreement (PPA).

The PPA will support Meta’s clean energy goals and regional operations with 1,121 megawatts of emissions-free nuclear energy. Constellation Energy stock gained after the announcement.

Beginning in June 2027, the agreement supports the relicensing and continued operations of Constellation’s high-performing Clinton nuclear facility for another two decades after the state’s ratepayer-funded zero emission credit (ZEC) program expires.

Also Read: Meta Boosts Green Energy With New Solar Deal, Supports AI Data Center Growth

The deal will expand the output of the Clinton Clean Energy Center by 30 megawatts through plant uprates. The deal is also expected to deliver $13.5 million in annual tax revenue.

The Clinton Clean Energy Center was slated for premature closure in 2017 after years of financial losses despite being one of the best-performing nuclear plants in Illinois. However, the Future Energy Jobs Act prevented Clinton’s retirement by establishing a Zero Emission Credit program that financially supported the plant through mid-2027.

The Clinton Clean Energy Center’s economic and environmental impacts are significant. The Center employs over 530 people, contributes approximately $13.5 million in annual taxes, and generates enough carbon-free electricity to power over 800,000 homes.

An analysis by The Brattle Group found that shuttering Clinton would raise emissions by more than 34 million metric tons of carbon over 20 years, the equivalent of putting approximately 7.4 million gasoline-powered cars on the road for a year.

Cathie Wood’s Ark Invest highlighted in its new research that nuclear energy can potentially emerge as the lowest-cost source of electricity, outcompeting solar.

Price Action: CEG stock is up over 4.5% at $327 at last check Tuesday.

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