Constellation Energy stock climbs on Amazon nuclear power deal

Investing.com -- Constellation Energy Corp (NASDAQ: CEG) shares rose as much as 5% in after-hours trading Wednesday following the announcement of a 20-year nuclear power agreement with Amazon.com Inc (NASDAQ: AMZN).

The deal will support the expansion of the Calvert Cliffs Clean Energy Center in Maryland, the state's only nuclear plant. The agreement enables more than $3 billion in infrastructure investment, including improvements across the 1,790-megawatt facility and approximately 190 megawatts of new emissions-free generating capacity expected to come online between 2030 and 2032.

Under the 20-year agreement, Amazon will receive 690 megawatts of power, including the 190 megawatt capacity expansion. The companies also entered into a retail supply agreement to support Amazon operations in the 13-state PJM market.

Amazon's long-term commitment will provide Constellation with revenue certainty to relicense the plant for another 20 years and support development of new clean energy power plants at the site. The agreement will also help Amazon manage energy costs for facilities throughout the region.

"This agreement demonstrates how private investment can strengthen critical energy infrastructure," said Joe Dominguez, chairman, president and chief executive officer of Constellation. "Amazon's commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a strong foundation for future investment in both the facility and in advanced nuclear technologies."

Located in Lusby on the western shore of the Chesapeake Bay, Calvert Cliffs produces approximately 80% of Maryland's clean energy and enough electricity to power the equivalent of more than 1.3 million homes. The facility employs more than 800 people and contributes about $21 million annually in taxes.

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