Constellation said that the agreement will allow USD3 billion of investment, with the additional 190 MW being added to the existing 1,790 MW output of the Calvert Cliffs Clean Energy Center between 2030 and 2032.
It said: “In addition to making the uprate possible, Amazon’s long-term commitment will help provide Constellation with the revenue certainty to relicence the plant for another 20 years and make progress toward the development of new clean energy power plants at the site.”
The agreement with Amazon covers 690 MW of power and “the parties have also entered into a related retail supply agreement to support Amazon operations” in the 13-state PJM regional grid.
Joe Dominguez, Chairman and CEO of Constellation, said: “This agreement demonstrates how private investment can strengthen critical energy infrastructure. Amazon’s commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a strong foundation for future investment in both the facility and in advanced nuclear technologies.”
Kerry Person, vice president of AWS Global Operations and Data Center Delivery, said: “Amazon is committed to investing in carbon-free energy to strengthen the grid and benefit the communities where we operate. This long-term agreement with Constellation sustains the continued operation and expansion of Maryland’s largest source of carbon-free energy, supports hundreds of jobs, and brings significant new generation to the regional grid.”
Background
In November last year Constellation outlined plans for the Calvert Cliffs Clean Energy Center, including the power uprates for the two pressurised water reactors, and 20-year life extensions for the units which were connected to the grid in 1975 and 1976, respectively, and which would otherwise shut down in 2034 and 2036. Calvert Cliffs is Maryland’s only nuclear power plant and produces about 40% of Maryland’s total power generation and 80% of the state’s clean power generation.
With energy demands forecast to increase sharply in the coming decades, Constellation also said last year it “will explore building 2,000 megawatts of new, next-generation nuclear at Calvert Cliffs, effectively doubling the site’s output and creating enough clean generation to power future economic growth”.
US nuclear energy facilities are initially licensed to operate for 40 years and a Nuclear Regulatory Commission (NRC) rule allows licensees to apply for initial and subsequent licence renewals of up to 20 years each after the initial 40-year term. The NRC approved the initial licence renewal in March 2000, authorising Calvert Cliffs unit 1 to operate until 2034 and unit 2 to operate to 2036.
The agreement with Constellation, which operates the largest fleet of nuclear facilities in the US, is the latest in a series of power purchase deals and other investments in nuclear energy by tech giants and other end users, who need reliable 24/7 low-carbon power for things like data centres. Amazon was among a group of major energy users that .
