Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released January 13, 2025 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Constellation Energy Corporation (NYSE:CEG) (Baltimore, Maryland) announced one of the largest U.S. power deals ever on Friday when it detailed plans to purchase Calpine Corporation (Houston, Texas). Constellation is the largest nuclear power company in the U.S., while Calpine's holdings include natural gas-fired and geothermal facilities.
Constellation will acquire Calpine in a stock and cash deal valued at a price of $16.4 billion. The assumption of Calpine's debt lifts the deal to a net purchase price of $26.6 billion. Together, the companies will have nearly 60 gigawatts of power generation throughout the U.S. The deal significantly expands Constellation's presence in Texas from 11% to 23% of the state's power generation and from a negligible share in California to 10% of the state's power. California and Texas are the most populous states in the U.S. and consume the most energy.
The rise in data centers and their large consumption of energy has been a boon to Constellation, particularly as interest in emissions-free nuclear generation obtains popular support again. In September, the company announced that it had signed a power purchase agreement (PPA) with Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) for power from Three Mile Island's Unit 1 in Pennsylvania, which was shut down five years ago for economic reasons. Three Mile Island will be renamed the Crane Clean Energy Center. Constellation must submit plans to the Nuclear Regulatory Commission as well as Pennsylvania state and local authorities prior to the restart, but the company envisions the unit returning to operation in 2028, when the 20-year PPA will kick in. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project report and reading September 24, 2024, article - Constellation, Microsoft Want to Restart Three Mile Island to Power Data Centers.
Earlier this month, Constellation signed an agreement with the U.S. General Services Administration to deliver power to more than 13 federal agencies under a 10-year, $840 million contract. Constellation will provide more than 1 million megawatt-hours of nuclear-generated power beginning next year. For more information, see January 3, 2024, article - Constellation Wins Contract to Supply U.S. Government with Nuclear Energy.
While Constellation has other capital projects in the works, the company's largest number of projects involves refueling outages for its extensive nuclear fleet. Subscribers can learn more by viewing the related project reports.
Industrial Info is tracking more than 55 Calpine plants in the U.S., including The Geysers geothermal field north of San Francisco, California, which the company touts as "the largest complex of geothermal energy facilities in the world," providing about 50% of California's geothermal power. Subscribers can learn more by viewing the plant profile.
Calpine's capital projects include development of a natural gas-fired peaking plant near Fairfield, Texas (see project report), and most of the company's projects include maintenance to its natural gas-fired fleet. Industrial Info is tracking nearly 40 of the company's planned outages at its natural gas plants. Subscribers can learn more by viewing the related project reports.
Constellation and Calpine must obtain approval from the U.S. Federal Energy Regulatory Commission (FERC) and various state and local authorities before the deal closes, which is expected later this year. The combined company will be headquartered in Constellation's Baltimore home, but the company will retain a "significant presence" in Calpine's Houston headquarters, the companies said.
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).
Constellation will acquire Calpine in a stock and cash deal valued at a price of $16.4 billion. The assumption of Calpine's debt lifts the deal to a net purchase price of $26.6 billion. Together, the companies will have nearly 60 gigawatts of power generation throughout the U.S. The deal significantly expands Constellation's presence in Texas from 11% to 23% of the state's power generation and from a negligible share in California to 10% of the state's power. California and Texas are the most populous states in the U.S. and consume the most energy.
The rise in data centers and their large consumption of energy has been a boon to Constellation, particularly as interest in emissions-free nuclear generation obtains popular support again. In September, the company announced that it had signed a power purchase agreement (PPA) with Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) for power from Three Mile Island's Unit 1 in Pennsylvania, which was shut down five years ago for economic reasons. Three Mile Island will be renamed the Crane Clean Energy Center. Constellation must submit plans to the Nuclear Regulatory Commission as well as Pennsylvania state and local authorities prior to the restart, but the company envisions the unit returning to operation in 2028, when the 20-year PPA will kick in. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project report and reading September 24, 2024, article - Constellation, Microsoft Want to Restart Three Mile Island to Power Data Centers.
Earlier this month, Constellation signed an agreement with the U.S. General Services Administration to deliver power to more than 13 federal agencies under a 10-year, $840 million contract. Constellation will provide more than 1 million megawatt-hours of nuclear-generated power beginning next year. For more information, see January 3, 2024, article - Constellation Wins Contract to Supply U.S. Government with Nuclear Energy.
While Constellation has other capital projects in the works, the company's largest number of projects involves refueling outages for its extensive nuclear fleet. Subscribers can learn more by viewing the related project reports.
Industrial Info is tracking more than 55 Calpine plants in the U.S., including The Geysers geothermal field north of San Francisco, California, which the company touts as "the largest complex of geothermal energy facilities in the world," providing about 50% of California's geothermal power. Subscribers can learn more by viewing the plant profile.
Calpine's capital projects include development of a natural gas-fired peaking plant near Fairfield, Texas (see project report), and most of the company's projects include maintenance to its natural gas-fired fleet. Industrial Info is tracking nearly 40 of the company's planned outages at its natural gas plants. Subscribers can learn more by viewing the related project reports.
Constellation and Calpine must obtain approval from the U.S. Federal Energy Regulatory Commission (FERC) and various state and local authorities before the deal closes, which is expected later this year. The combined company will be headquartered in Constellation's Baltimore home, but the company will retain a "significant presence" in Calpine's Houston headquarters, the companies said.
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).
