Meta, Constellation sign 20-year clean power deal
A 20-year power purchase agreement between Meta and Constellation will secure the long-term operation of Constellation's Clinton Clean Energy Center, while the tech company is also moving forward with its process to develop nuclear capacity at new US locations.
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The power purchase agreement will see Meta purchase output from the single-unit boiling water reactor unit to support its clean energy goals, beginning in June 2027. The agreement supports the relicensing and continued operations of the nuclear facility for another two decades after the state of Illinois’s zero emission credit programme expires, Constellation said. The deal will also see Clinton’s output increased by 30 MWe through plant uprates; preserve 1,100 high-paying local jobs; deliver USD13.5 million in annual tax revenue, it added.
Clinton entered commercial operation in 1987 and is currently licensed to operate until April 2027. Constellation applied to the US Nuclear Regulatory Commission last year for a 20-year initial licence extension. That application is currently undergoing review by the regulator.
"Last year, Constellation’s announced plan to restart the Crane Clean Energy Center became national news, but despite all of the interest and overwhelming support, a key question was missed: why did we let such a valuable plant close in the first place? We all know that the closure cost our community jobs, tax revenue, more pollution and higher prices," Constellation President and CEO Joe Dominguez said. "We are proud to partner with Meta because they asked that important question, and even better, they figured out that supporting the relicensing and expansion of existing plants is just as impactful as finding new sources of energy. Sometimes the most important part of our journey forward is to stop taking steps backwards."
The Clinton plant had been slated for premature closure in 2017 for economic reasons despite being one of the best performing nuclear plants in Illinois, until the state enacted legislation establishing the zero emission credit programme, which provides financial support to the plant until mid-2027. The power purchase agreement with Meta is a market-based solution that essentially replaces the zero emission credit programme and ensures long-term operation of the plant without the need for ratepayer support, Constellation said.
With the guarantee that Clinton will continue to run for another two decades, Constellation said it is also 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 (SMR) at the site.
Landmarks
Meta is prioritising operating its data centres efficiently and cleanly, and said the power purchase agreement was a landmark agreement. "As we look toward our future energy needs in advancing AI, we recognise the immense value of nuclear power in providing reliable, firm electricity, and the role nuclear projects can have in supporting local economies and strengthening America’s energy leadership," the company said.
"As we have embarked on understanding and helping to grow nuclear energy in the US, we have heard from across the ecosystem that existing nuclear power plants will not be able to stay online indefinitely without partners and investments that help extend existing operating licences and increase generation capacity. It’s clear that there are many nuclear power plants serving the US that need long-term support to help our electricity grids remain reliable as energy needs grow. Keeping an existing plant operating will have the same positive effect as adding new clean energy to the grid, and avoid the disruption that has occurred when other nuclear units have retired prematurely."
Meta, a signatory of the Large Energy Users Pledge supporting the goal of at least tripling global nuclear capacity by 2050, last year announced that it would seek proposals for as much as 4 GW of nuclear capacity in the USA by the early 2030s. The company said it has seen "great progress" on its nuclear request for proposals, receiving "over 50 qualified submissions from a range of participants in the nuclear ecosystem - including utilities, developers and nuclear technology manufacturers" reflecting "a diversity of technology options, commercial terms and sites across more than 20 states".
It is prioritising sites where nuclear development can be advanced quickly with high degrees of certainty on execution and timeline, it said. It has now selected a shortlist of new nuclear projects across multiple US states that it says represent some of the most feasible opportunities, and is looking to finalise the process this year.
"Through both our nuclear RFP process and the Constellation agreement - as well as our commitment through the Tripling Nuclear Pledge - we are creating a demand signal for nuclear, which is necessary for existing units to remain in operation and for developers to permit, site, design and engineer more facilities moving forward. Our investments in nuclear energy ensure that we will have the robust energy infrastructur needed to power the AI innovations that are set to spark economic growth and prepare our communities for the future," the company said.
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