Amazon and energy producer Constellation Energy announced a new 20-year power purchase agreement (PPA) aimed at supporting the continued operation and expansion of Constellation’s Calvert Cliffs nuclear plant in Maryland, and providing Amazon with carbon-free energy..
According to Constellation, the new agreement will enable investments in state-of-the-art improvements across the 1,790 MW plant, which it said plant produces about 80% of Maryland’s carbon-free energy, adding approximately 190 MW of new generating capacity, which will come online between 2030 and 2032.
Constellation added that the revenue certainty provided by the deal will enable it to relicense the plant for another 20 years and make progress toward the development of new clean energy power plants at the site.
Overall, the agreement will enable more than $3 billion in Maryland infrastructure investment, the company said.
Constellation President and CEO Joe Dominguez 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.”
Under the new agreement, Amazon will purchase 690 MW of power from the nuclear plant, including the 190 MW uprate. The companies also announced that they have entered into a related retail supply agreement to support Amazon operations across the PJM market, which manages the electric grid across 13 states and the District of Columbia.
The agreement marks the latest in a series of nuclear deals by Amazon, as it moves beyond renewable energy to achieve its sustainability goals. The company pledged in 2019 to match all of the electricity consumed across its global operations, including data centers, corporate buildings, stores and fulfillment centers, with 100% renewable energy by 2030.
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.”
