Constellation Energy Corp. secured over $1 billion in contracts with the US government to supply clean nuclear energy and upgrade its reactors, according to a new report from Bloomberg.
Key Facts:
– Constellation signed a 10-year, $840 million contract with the General Services Administration.
– The company will also receive $172 million for energy conservation measures at five federal facilities.
– These agreements will help fund upgrades at its nuclear fleet, adding about 135 megawatts of capacity.
– Constellation plans to restart a shuttered reactor at Three Mile Island, supported by a deal with Microsoft Corp.
– Constellation shares rose by as much as 7.6% after the announcement.
The Rest of The Story:
Constellation’s new contract with the Federal Government shows even the feds have a growing desire for reliable nuclear power.
The company plans to add at least 1,000 megawatts of total capacity at its nuclear plants.
This is approximately the same output as building a brand new reactor from scratch.
Officials at Constellation believe that support from both government agencies and private firms, such as Microsoft, indicates a shift back towards embracing nuclear as a safe and steady source of carbon-free energy.
Constellation Energy Stock Is Leading the S&P 500. Nuclear Energy Has a New Fan. https://t.co/wuVR4PHOOj
— Barron's (@barronsonline) January 2, 2025
Commentary:
This $1 billion agreement shows that the future of green energy may hinge on nuclear power rather than wind or solar, at least for large scale power needs.
Even if not widely promoted by current policymakers, nuclear power is the logical and safe choice.
This deal shows even the Biden administration knows the future lies with nuclear power.
Modern infrastructure like AI, electric vehicles, and fully electric homes require a reliable power source that can run 24/7.
Nuclear plants, with proper safety measures, can deliver the round-the-clock clean energy needed to handle these demands at a relatively low cost.
The Bottom Line:
Constellation’s billion-dollar deal demonstrates how nuclear energy is gaining favor in the clean power race.
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It’s a clear message that nuclear will play a key role in meeting the USA’s growing energy needs.