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Constellation Energy (NASDAQ:CEG) +13.9% pre-market Tuesday after unveiling an agreement to sell power to Meta Platforms (NASDAQ:META) from an operating Illinois nuclear plant for 20 years, as artificial intelligence sends power demand soaring.
Constellation (NASDAQ:CEG) said the agreement supports the relicensing and continued operations of its Clinton nuclear facility in Illinois for another two decades starting in June 2027 after the state’s ratepayer funded zero emission credit program expires; the deal will expand Clinton’s clean energy output by 30 MW through plant uprates.
The deal is the first deal of its kind in the U.S. with an operating nuclear plant, according to The Wall Street Journal, but has parallels to one that Constellation (NASDAQ:CEG) and Microsoft struck last year involving the Three Mile Island plant in Pennsylvania, in which a 20-year power purchase agreement is prompting the restart of that site’s undamaged reactor, which already was undergoing decommissioning; neither deal removes power from the grid.
The Clinton site’s single nuclear reactor currently produces up to 1,091 MW of electricity, or enough to power 800K homes, Constellation (NASDAQ:CEG) says.
The company also said it is evaluating strategies to extend the plant’s existing early site permit or seek a new construction permit from the Nuclear Regulatory Commission to pursue development of an advanced nuclear reactor or small modular reactor at the Clinton site.
Nuclear-related peers trade higher across the board, including Uranium Energy (UEC) +9.6%, Energy Fuels (UUUU) +8.6%, Lightbridge (LTBR) +8%, Oklo (OKLO) +7.3%, Centrus Energy (LEU) +7.2%, Nuscale Power (SMR) +7%, Nano Nuclear Energy (NNE) +6.7%, Vistra (VST) +5.6%, NexGen Energy (NXE) +4.8%, Talen Energy (TLN) +4.6%, Cameco (CCJ) +4.3%, BWX Technologies (BWXT) +4%.