Latest news with #powerpurchaseagreement
Reuters
4 days ago
- Business
- Reuters
Danske Commodities signs deal with German energy purchasing group
COPENHAGEN, June 11 (Reuters) - Danish energy trader Danske Commodities said on Wednesday it had signed a power purchase agreement (PPA) with German energy purchasing group to deliver around 180 gigawatt hours (GWh) of electricity between July 2025 and December 2026. The deal corresponds roughly to the consumption of 48,000 households, Danske Commodities said in a statement, adding that the agreement will expand its existing partnership with "The collaboration with Danske Commodities marks a significant step in our mission to transform the German energy market into a more sustainable one," Boris Kaser, chair of the executive board at said. Danske Commodities is an energy trading unit of Norway's Equinor ( opens new tab.
Yahoo
4 days ago
- Business
- Yahoo
Constellation Energy Stock (CEG) Eyes Atomic Expansion to Empower AI Boom
Constellation Energy Corporation (CEG) and Meta Platforms (META) are forming an unlikely partnership. The large-cap energy provider struck what's known as a 'power purchase agreement' with Meta, granting the tech conglomerate the entire 1.1 gigawatt output from Constellation's Clinton Clean Energy Center in Illinois for 20 years starting in mid-2027. Constellation's stock surged around 10% following the news, but has since given up its gains. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The deal marks a shift in how hyperscale tech companies are addressing their AI-driven power needs, with nuclear energy emerging as a preferred solution due to its carbon-free baseload power. Constellation's fleet of nuclear power plants bodes well for future deals, leaving me cautiously optimistic despite a frothy valuation. Meta's 20-year power agreement marks the largest in a growing wave of partnerships between nuclear energy providers and major tech companies. Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) have all secured nuclear energy to meet the surging power demands driven by their AI initiatives. Nuclear power offers several key advantages over other energy sources, including around-the-clock availability, scalability, and zero carbon emissions. These attributes make it especially appealing to energy-intensive data centers that operate continuously. To put this into perspective, a single ChatGPT query is estimated to consume roughly 10 times more energy than a standard Google search. Nuclear energy remains somewhat misunderstood. While rare nuclear accidents tend to dominate headlines and shape public perception, support for nuclear power is growing. A recent Pew Research Center poll found that 56% of Americans now favor expanding atomic energy. Regulatory momentum is also shifting in its favor, creating a supportive environment for companies like Constellation Energy. The ADVANCE Act of 2024, for example, reduced regulatory review fees for advanced reactor applicants and imposed an 18-month deadline for the Nuclear Regulatory Commission (NRC) to make decisions. Earlier this year, the Trump administration issued executive orders aimed at quadrupling U.S. nuclear capacity by 2050. Constellation, which operates the largest nuclear fleet in the country with 21 reactors across 15 sites, is well-positioned to benefit. When you combine favorable policy shifts with rising demand for energy, particularly from AI infrastructure, it's clear why Constellation is increasingly optimistic about the road ahead In its first quarter earnings, Constellation highlighted the demand for power from data centers. Constellation is just beginning to monetize AI-driven energy demand. Its adjusted operating earnings grew 17.6% in the first quarter to $2.14 per share. Nuclear production maintained an impressive 94.1% capacity factor and continues to remain stable across all geographies. Due to recent deals, Constellation now projects adjusted operating earnings growth of 13% or more through 2030, up from 10%. That said, much of Constellation's potential appears to be priced in. The stock has surged 380% over the past three years and now trades at a Price-to-Earnings (P/E) ratio of 33, nearly double the average for the Utilities sector. This premium valuation leaves little room for error; any operational setbacks could trigger a sharp pullback. While signing long-term agreements with companies like Meta is a positive step, the real challenge lies in execution—building infrastructure, scaling capacity, and navigating regulatory approvals. Time is a critical factor, and delays could have material consequences. Although Constellation currently enjoys a first-mover advantage, it won't be alone for long. Other utility providers are beginning to adopt similar strategies, and competitive pressures in the space are likely to intensify going forward. On Wall Street, CEG sports a Moderate Buy consensus rating based on eight Buy, five Hold, and zero Sell ratings in the past three months. CEG's average stock price target of $318.36 implies an upside potential of approximately 6.5% over the next twelve months. Following the Meta deal, analyst Ryan Levine from Citi downgraded CEG to Hold with a price target of $318. He noted that the stock's rally following the Meta announcement prompted a reevaluation of its value. He added, 'The Meta deal introduces a new framework where nuclear license extensions are considered additive generation, potentially impacting future deals for other plants in CEG's portfolio.' So, Levine sees both positives (a validated business model and premium pricing) and negatives (high valuation, execution risks, and market uncertainty). Technological advancements—particularly in artificial intelligence—present a significant opportunity for utility companies, and Constellation is well-positioned to capitalize. Its extensive fleet of nuclear power plants gives it a strategic edge, and its recent agreement with Meta could serve as a blueprint for future partnerships with other tech giants. Regulatory momentum is also working in Constellation's favor, further strengthening its long-term prospects. That said, the stock is already trading at a premium, reflecting high investor expectations. While Constellation's growth profile justifies a higher valuation—it's far from a traditional, slow-growth utility—there are still meaningful execution risks tied to complex nuclear infrastructure projects. Given this backdrop, a cautiously optimistic outlook, like the one expressed by analyst Levine, may be the most prudent approach. Still, Constellation appears well-positioned to benefit from the broader resurgence of nuclear energy, particularly as AI continues to drive up demand for reliable, carbon-free power, making it a compelling speculative opportunity. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
These 3 Nuclear Stocks Should Be on Your Energy Radar
Nuclear energy stocks have been on a tear again after U.S. President Donald Trump signed executive orders that will facilitate the expansion of nuclear energy production, including expediting the regulatory approvals for new nuclear reactors. The Trump administration intends to reform the nuclear energy sector by overhauling the Nuclear Regulatory Commission (NRC), allowing the DoE to build nuclear reactors on federally-owned land, enhancing research at the U.S. Department of Energy and expanding domestic uranium mining and enrichment. And, Big Tech companies are seizing this opportunity to secure cheap, abundant power supplies for their power-hungry AI data centers. Shares of America's leading nuclear power plant operator, Constellation Energy Corp. (NYSE:CEG), have surged more than 15% after the company unveiled on Tuesday an agreement to sell more than 1,100 MW of nuclear power to Meta Platforms (NASDAQ:META) from its Illinois nuclear plant for 20 years. According to The Wall Street Journal, the deal is the first deal of its kind for an operating nuclear plant in the United States, and closely mirrors a similar deal Constellation signed with Microsoft Corp. (NASDAQ:MSFT) last year. The Microsoft deal is a 20-year power purchase agreement (PPA) that will see Constellation Energy restart its undamaged reactor in Three Mile Island, which was undergoing deal will draw power from the main grid. However, Meta appears to have secured a better deal, with Citi's Ryan Levine estimating that the 20-year PPA is priced in the $70-$95/MWh range, considerably cheaper than Jefferies' estimate of at least $110/MWh for Microsoft's PPA, because Meta's deal '…does not offer a substantial premium for low-carbon nuclear power'. Levine has projected that ~70% of Constellation's existing nuclear plants could secure comparable datacenter deals at ~$80/MWh. Constellation is unlikely to be the only nuclear power producer that will see surging power demand under a Trump administration that refuses to put a premium on low-carbon energy. Nuclear stocks have mostly taken a breather after a scorching rally triggered by Russia's war in Ukraine. However, here are 3 nuclear stocks with significant upside. Denison Mines Corp. Consensus Price Target: $4.04 Implied 12- Month Upside Potential: 148% Denison Mines Corp.(NYSE:DNN) engages in the exploration, acquisition and development of uranium properties in Canada. Denison has become a Wall Street favorite, with BMO analyst Alexander Pearce saying the stock's price-to-net present value ratio of 0.9x is one of the most attractive in its group, with clear near-term catalysts. Denison boasts one of the sector's strongest balance sheets, critical for funding modest capital requirements for its 2.2M lbs Phoenix In-Situ Uranium Recovery project. Last month, Denison reported Q1 2024 revenue of C$1.38M, good for +66.3% Y/Y growth while quarterly loss of $0.03 per share missed the Wall Street consensus by $0.01. The company achieved ~75% completion of total engineering for Phoenix, and has committed $67 million for long-lead capital purchases. NexGen Energy Consensus Price Target: $12.85 Implied 12- Month Upside Potential: 102% NexGen Energy Ltd. (NYSE:NXE), is a Canadian exploration and development stage company that develops uranium properties in Canada. The company holds a 100% interest in the Rook I project in southwestern Athabasca Basin of Saskatchewan, totaling an area of ~35,065 hectares. Back in March, NXE shares surged after the company revealed that recent drilling at its Rook I site intersected a rich uranium concentration at its Patterson Corridor East property, the largest development-stage uranium deposit in Canada. According to the company, drillhole RK-25-232 unveiled rich uranium concentration, making it one of the shallowest high-grade intersections at Patterson Corridor. "Discovering mineralization of this intensity so early in our 2025 program outpaces the success pattern experienced at the Arrow deposit," CEO Leigh Curyer said. Paladin Energy Consensus Price Target: $5.08 Implied 12-Month Upside Potential: 21.5% Paladin Energy Ltd (ASX:PDN TSX: PDN OTCQX:PALAF) is an independent uranium developer with a 75% stake in Namibia's Langer Heinrich Mine. Last year, Paladin acquired Canada's Fission Uranium Corp., with the company now operating an extensive portfolio of uranium assets across Canada. Paladin is positioning itself as a significant player in baseload energy provision in multiple countries across the globe and contributing to global decarbonization. Last month, Paladin reported Q3 revenue of $60.97M and GAAP EPS of $0.06. Uranium sales for the quarter were 872,000 pounds, at an average price of $69.90 per pound. The Langer Heinrich property produced 745,000 pounds of uranium, good for a 17% increase on the previous quarter's production to bring total production to over 2 million pounds in the financial year-to-date. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TechCrunch
22-05-2025
- Business
- TechCrunch
Meta adds another 650 MW of solar power to its AI push
Meta signed another big solar deal on Thursday, securing 650 megawatts across projects in Kansas and Texas. American utility and power generation company AES is currently developing the solar-only projects, with 400 megawatts to be deployed in Texas and 250 megawatts in Kansas, the company told TechCrunch. Meta said it signed the deal to power its data centers, which have been expanding to support its growing AI operations. The company already has more than 12 gigawatts of capacity in its renewable power portfolio. AES typically signs new power purchase agreements two to three years before they begin commercial operations, and the average term for such deals is 15 to 20 years, spokesperson Katie Lau said. This is the fourth solar deal that Meta has announced this year. All are in Texas, with one clocking in at 595 megawatts, another at 505 megawatts, and the final two hitting 200 megawatts each. Texas has become a hotbed of solar development recently, leading the nation in new solar capacity installed in 2023 and 2024, according to the Solar Energy Industries Association. The state has ample sunshine, quick permitting, and speedy grid connections. The latter two are particularly helpful when deploying a new solar capacity. With permitting and grid connections in place, a solar farm can be built in months rather than years. It doesn't hurt that new solar is one of the cheapest forms of new generating capacity, even before subsidies are considered. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW Plus, data centers needn't want for construction to finish since solar farms can be phased in, with electricity flowing before project completion. Indeed, in a press release, AES CEO Andrés Gluski called out solar's 'fast time-to-power and low-cost electricity' as key attributes that have attracted hyperscalers like Meta.
Reuters
13-05-2025
- Business
- Reuters
French utility Engie signs deal to sell power to US data center company
PARIS, May 13 (Reuters) - French utility Engie ( opens new tab said on Tuesday it had signed a deal to supply up to 300 megawatts of wind power to U.S. data center company Cipher Mining Inc. The so-called power purchase agreement allows the co-located data center to use electricity during periods of excess generation, while enhancing grid stability and reliability, the utility said. A co-located data center is a project where equipment, space, and bandwidth are available for rental to retail customers.
