Constellation Energy Soars on 20-Year Deal with Amazon
Constellation Energy Corporation (NASDAQ:CEG) shares are trading higher by almost 4% in Thursday's premarket session, following a significant development in its business. On Wednesday, the company signed a 20-year power purchase agreement with Amazon.com, Inc. (NASDAQ:AMZN), which will support more than $3 billion of infrastructure investment at the Calvert Cliffs Clean Energy Center.
The long-term agreement covers 690 megawatts, including upgrades across the plant's 1,790-megawatt capacity and approximately 190 megawatts of new emissions-free generation expected between 2030 and 2032. The expansion is backed by a 20-year agreement covering 690 megawatts, along with a retail supply agreement supporting Amazon operations across the 13-state PJM market.
This deal will provide Constellation with revenue visibility to relicense the plant for another 20 years and advance potential new clean-energy projects at the site. The agreement is expected to support new reliable generation and strengthen the broader electric system. Additionally, in a separate development last week, Constellation Energy penned a 15-year renewable energy agreement with Toyota Motor (NYSE:TM) North America to support new solar generation and Toyota's sustainability goals.