Constellation Energy Corporation CEG shares are trading higher after the company announced it signed a 20-year power purchase agreement with Microsoft Corporation MSFT.
The deal entails the launch of the Crane Clean Energy Center (CCEC) and the restart of Three Mile Island Unit 1, which was closed five years ago.
As per this agreement, Microsoft will source energy from the renewed plant to align its PJM data centers’ power use with carbon-free energy, supporting its sustainability goals.
Unit 1 is next to TMI Unit 2, which has been shut down since 1979 and is being decommissioned by Energy Solutions. Unit 1 operates independently and was unaffected by the accident.
Constellation will also seek a license renewal to extend operations until at least 2054. The CCEC is expected to be operational by 2028.
Joe Dominguez, president and, CEO, Constellation said, “Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise.”
Constellation purchased TMI Unit 1, in 1999 and was retired for economic reasons in 2019. The plant will be renamed the Crane Clean Energy Center in honor of Chris Crane, who was CEO of Constellation’s former parent company.
Bobby Hollis, VP of Energy, Microsoft said, “This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative. Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids’ capacity and reliability needs.”
U.S. Congressman Scott Perry said, “This critical step forward will ensure Pennsylvania has sufficient baseload power to meet its needs for decades to come while producing 3,400 jobs in our community.”
Investors can gain exposure to the stock via Strive Natural Resources and Security ETF FTWO and Virtus Reaves Utilities ETF UTES.
Price Action: CEG shares are up 12.1% at $233.80 premarket at the last check Friday.
Photo by metamorworks via Shutterstock
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