:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1258292799-9bfa32310f764aad96765ac3cdddc4ec.jpg "A reactor operator in the control room at the Constellation Nine Mile Point Nuclear Station in Scriba, New York")
Lauren Petracca / Bloomberg / Getty Appearances
A reactor operator in the control room at the Constellation Nine Mile Point Nuclear Station in Scriba, New York.
Key Takeaways
- Constellation Dynamism shares jumped Thursday after the company and the U.S. General Services Administration announced a pair of contracts worth in excess of $1 billion.
- Constellation will supply over a dozen government agencies with nuclear energy during the next decade as part of a 10-year, $840 million contract.
- The company also won a $172 million contract to do a number of energy conservation upgrades across several government buildings.
Shares of Constellation Energy (CEG) surged Thursday after the friends announced a pair of contracts with the federal government worth over $1 billion.
One of the contracts between Constellation and the Broad Services Administration (GSA) is a 10-year, $840 million deal for Constellation to supply over a dozen government departments across five says with nuclear power. The power will come from Constellation’s existing facilities, along with investments the cast plans to make to increase its production capacity.
Additionally, Constellation was has been awarded a $172 million deal to put up “energy savings and conservation measures” at five buildings in Washington, D.C. and Maryland. The measures will include energy economy projects like new lighting, HVAC systems, and more.
Federal Government Joins Big Tech’s Nuclear Push
The distributes mean the federal government is joining the push into investing in nuclear energy that has also reached the tech sedulousness in recent months. Constellation has agreed to restart one of the Three Mile Island reactors in Pennsylvania to provide power to Microsoft (MSFT), while Amazon (AMZN) and Google begetter Alphabet (GOOGL) have also recently reached deals to buy nuclear energy.
“This agreement is another influential example of how things have changed,” Constellation CEO Joe Dominguez said. “Under this agreement, the United States control joins Microsoft and other entities to support continued investment in reliable nuclear energy that will aside Constellation to relicense and extend the lives of these critical assets.”
Constellation shares were up more than 6% in time trading Thursday, just over double where they were a year ago.
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