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Released November 08, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Constellation Energy Corporation (NASDAQ:CEG) (Baltimore, Maryland) is moving forward with its growth strategy, company executives said Monday, which includes $1.5 billion in investment. Constellation operates the U.S.' largest fleet of nuclear power plants.
"We continue to execute our growth strategy, closing on the South Texas Project transaction ahead of schedule and moving forward with $1.5 billion in growth spending on equipment to increase the output of our nuclear plants, wind repowering and pursuit of a nuclear-powered clean hydrogen facility as part of a multi-state hub," said Joe Dominguez, chief executive officer of Constellation, in a third-quarter earnings-related press release.
Earlier this month, Constellation completed its $1.75 billion acquisition of a 44% stake in the nuclear-fired, dual-unit, 2,645-megawatt (MW) South Texas Project Electric Generating Station, about 90 miles southwest of Houston. "This acquisition is complementary to and aligned strategically with our existing clean energy business operations," the company said in the press release. On the earnings-related conference call, Dominguez said the acquisition will expand its nuclear-power production to about 180 million megawatt-hours.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can click here for the plant profile.
The utility aims to be fully carbon-free by 2040, with a current goal of 95% by 2030.
In terms of the company's clean hydrogen efforts, Constellation is part of the Midwest Alliance for Clean Hydrogen (MachH2), a coalition of public and private entities across the Midwest that aims to launch a regional clean hydrogen hub. The proposed hub was recently selected by the U.S. Department of Energy (DOE) for up to $1 billion in federal funding, as one of seven hydrogen hub projects to receive a total of $7 billion in funding. For more information, see October 19, 2023, article - Seven Hydrogen Hubs Selected to Receive $7 Billion in DOE Funding.
Constellation plans to use a portion of the funding to build the world's largest nuclear-powered clean hydrogen production facility, at its LaSalle Clean Energy Center in Illinois. The proposed $900 million project remains in its early analysis phase. Subscribers to the GMI Power Project Database can click here for the project report.
However, on the conference call, Dominguez said it remains "critical that the Treasury Department guidance confirms that using existing nuclear energy to produce hydrogen qualifies for the full clean energy production tax credit. Certainly, we think that the hub award is a good sign, but we need to see the right rules, or the hub won't happen."
Constellation has signed an agreement with Illinois-based utility Commonwealth Edison (ComEd) to provide enough nuclear power to operate all of ComEd's facilities. For more information, see September 20, 2023, article - Nuclear Power Purchase Agreements Take Shape in the U.S.
On the earnings call, Chief Financial Officer Dan Eggers said Constellation has $1.2 billion of unallocated capital for 2023 and 2024, which will be used "to create additional shareholder value through growth investments, M&A [mergers and acquisitions], or return of capital to our owners." He said this figure could be updated next quarter.
Industrial Info is tracking $3.3 billion worth of projects from the electricity provider. Subscribers can click here for a full list of active projects attributed to Constellation Energy.
The same day Constellation reported its third-quarter earnings results, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corp (NERC) released a joint statement regarding the company's plans to retire its Mystic natural gas-fired power plant on the Mystic River in Everett, Massachusetts, in May 2024, which could also lead to the retirement of Constellation's Everett liquefied natural gas (LNG) import facility. The LNG imported at Everett provides fuel for the Mystic plant and is piped to gas providers in New England.
"We remain concerned about the potential loss of the Everett Marine Terminal (Everett) in New England and the consequences that it might have for the reliability and affordability of the region's energy supplies, wrote FERC Chairman Willie Phillips and NERC Chief Executive Officer James Robb. Phillips and Robb said that the agencies' preliminary findings and recommendations regarding Winter Storm Elliott showed flows of pipeline natural gas were reduced at the same time as shippers requested increased volumes of natural gas, which dramatically lowered line pressures. This put "significant stress on the natural gas system, which only narrowly avoided significant outages."
Although the regulators cited evidence that Everett's retirement would be "manageable" for the electric system, at least in the near-term, "should those expectations not materialize as anticipated, ensuring reliability and affordability could become challenging in the face of a significant winter event."
Subscribers can click here for a profile on the Mystic power station and here for a profile on the Everett LNG facility.
Subscribers to Industrial Info's GMI Database can click here for the project report mentioned in this article, and click here for a full list of plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"We continue to execute our growth strategy, closing on the South Texas Project transaction ahead of schedule and moving forward with $1.5 billion in growth spending on equipment to increase the output of our nuclear plants, wind repowering and pursuit of a nuclear-powered clean hydrogen facility as part of a multi-state hub," said Joe Dominguez, chief executive officer of Constellation, in a third-quarter earnings-related press release.
Earlier this month, Constellation completed its $1.75 billion acquisition of a 44% stake in the nuclear-fired, dual-unit, 2,645-megawatt (MW) South Texas Project Electric Generating Station, about 90 miles southwest of Houston. "This acquisition is complementary to and aligned strategically with our existing clean energy business operations," the company said in the press release. On the earnings-related conference call, Dominguez said the acquisition will expand its nuclear-power production to about 180 million megawatt-hours.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can click here for the plant profile.
The utility aims to be fully carbon-free by 2040, with a current goal of 95% by 2030.
In terms of the company's clean hydrogen efforts, Constellation is part of the Midwest Alliance for Clean Hydrogen (MachH2), a coalition of public and private entities across the Midwest that aims to launch a regional clean hydrogen hub. The proposed hub was recently selected by the U.S. Department of Energy (DOE) for up to $1 billion in federal funding, as one of seven hydrogen hub projects to receive a total of $7 billion in funding. For more information, see October 19, 2023, article - Seven Hydrogen Hubs Selected to Receive $7 Billion in DOE Funding.
Constellation plans to use a portion of the funding to build the world's largest nuclear-powered clean hydrogen production facility, at its LaSalle Clean Energy Center in Illinois. The proposed $900 million project remains in its early analysis phase. Subscribers to the GMI Power Project Database can click here for the project report.
However, on the conference call, Dominguez said it remains "critical that the Treasury Department guidance confirms that using existing nuclear energy to produce hydrogen qualifies for the full clean energy production tax credit. Certainly, we think that the hub award is a good sign, but we need to see the right rules, or the hub won't happen."
Constellation has signed an agreement with Illinois-based utility Commonwealth Edison (ComEd) to provide enough nuclear power to operate all of ComEd's facilities. For more information, see September 20, 2023, article - Nuclear Power Purchase Agreements Take Shape in the U.S.
On the earnings call, Chief Financial Officer Dan Eggers said Constellation has $1.2 billion of unallocated capital for 2023 and 2024, which will be used "to create additional shareholder value through growth investments, M&A [mergers and acquisitions], or return of capital to our owners." He said this figure could be updated next quarter.
Industrial Info is tracking $3.3 billion worth of projects from the electricity provider. Subscribers can click here for a full list of active projects attributed to Constellation Energy.
The same day Constellation reported its third-quarter earnings results, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corp (NERC) released a joint statement regarding the company's plans to retire its Mystic natural gas-fired power plant on the Mystic River in Everett, Massachusetts, in May 2024, which could also lead to the retirement of Constellation's Everett liquefied natural gas (LNG) import facility. The LNG imported at Everett provides fuel for the Mystic plant and is piped to gas providers in New England.
"We remain concerned about the potential loss of the Everett Marine Terminal (Everett) in New England and the consequences that it might have for the reliability and affordability of the region's energy supplies, wrote FERC Chairman Willie Phillips and NERC Chief Executive Officer James Robb. Phillips and Robb said that the agencies' preliminary findings and recommendations regarding Winter Storm Elliott showed flows of pipeline natural gas were reduced at the same time as shippers requested increased volumes of natural gas, which dramatically lowered line pressures. This put "significant stress on the natural gas system, which only narrowly avoided significant outages."
Although the regulators cited evidence that Everett's retirement would be "manageable" for the electric system, at least in the near-term, "should those expectations not materialize as anticipated, ensuring reliability and affordability could become challenging in the face of a significant winter event."
Subscribers can click here for a profile on the Mystic power station and here for a profile on the Everett LNG facility.
Subscribers to Industrial Info's GMI Database can click here for the project report mentioned in this article, and click here for a full list of plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
