Constellation surges on deal with Microsoft to restart Three Mile Island nuclear plant

Shares of Constellation Energy Corp (NASDAQ:CEG ) surged over 11% in premarket trading on Friday following the announcement of a landmark power purchase agreement with Microsoft (NASDAQ:MSFT ).

The deal, Constellation's largest-ever power purchase agreement, will support the relaunch of Three Mile Island Unit 1, which was shuttered in 2019 for economic reasons.

The agreement will allow Microsoft to buy carbon-free energy from the Crane Clean Energy Center (CCEC), the newly renamed facility.

The deal is part of Microsoft's efforts to decarbonize its data centers and match its demand for clean energy.

"This agreement is a major milestone in Microsoft's efforts to help decarbonize the grid," said Bobby Hollis, Microsoft's VP of Energy.

The restart of TMI Unit 1 will add approximately 835 megawatts of carbon-free energy to the grid, enough to power over 800,000 homes, and create 3,400 direct and indirect jobs.

The project is expected to bring more than $3 billion in state and federal taxes, according to Constellation.

Constellation highlighted the plant's previous operational performance, noting that before its closure, it operated "at industry-leading levels of safety and reliability."

The facility will now be repurposed as the Crane Clean Energy Center, named in honor of the late Chris Crane, a leader in the nuclear industry. Set to be online by 2028, the center is expected to provide Pennsylvania with reliable carbon-free power for decades, aligning with both environmental and economic goals.

Governor Josh Shapiro praised the project for its ability to "sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs."

Source: Investing.com