Constellation’s ownership will shift to 42%, and Austin Energy’s ownership will remain at 16% following the transaction. Additionally, CPS Energy entered into a long-term Purchase Power Agreement (PPA) with Constellation for an additional 200 MW of firm capacity that will be available for CPS Energy customers by the summer.

The additional 2% ownership of STP for CPS Energy will equate to an additional 52 MW of dispatchable generation to the portfolio and will help support CPS Energy’s Vision 2027 plan that contemplates the retirement of 2,249 MW of older generation capacity before 2030. To date, CPS Energy has added 1,710 MW of natural gas, 730 MW of solar energy and 50 MW of energy storage as part of its generation plan, with an additional 500 MW energy storage RFP in the works.

CPS Energy says these efforts also align with its commitment to the City of San Antonio’s Climate Action & Adaptation Plan (CAAP), which includes a Board of Trustees resolution to support the CAAP’s goal to become carbon neutral by 2050, and the interim goals of reducing greenhouse gas emissions by 41% from 2016 levels and 71% by 2040.

CPS Energy, Austin Energy, NRG, and Constellation say they resolved their disputes regarding the proposed sale of an interest in STP by NRG to Constellation South Texas LLC and the related rights of first refusal of CPS Energy and Austin Energy. As part of this resolution, CPS Energy and Austin Energy will dismiss their pending litigation against NRG and Constellation and will withdraw their objections previously filed with the Nuclear Regulatory Commission.

“The addition of these megawatts to our system supports reliability for our customers as we enter another summer season,” said Rudy D. Garza, President and CEO of CPS Energy. “CPS Energy continues to stay focused on our Vision 2027 plan and will continue our focus on reliability for our growing community.”

The U.S. Department of Energy (DOE) is partnering with utilities on four hydrogen demonstration projects at U.S. nuclear power plants.

Hydrogen would be produced at the nuclear plants through high- or low-temperature electrolysis, a process of splitting water into pure hydrogen and oxygen. High-temperature electrolyzers use both heat and electricity to split water and are more efficient.

Many believe nuclear is a tool to produce clean hydrogen, which is seen as an important path to drive decarbonization – including in hard-to-abate sectors. In power generation, hydrogen is one of the leading options for storing renewable energy and can be used in gas turbines to increase power system flexibility.

Listed below are the four nuclear plants expected to ramp up hydrogen production. Please click the links to read any of our previous reporting.

Nine Mile Point Nuclear Power Station (Oswego, NY) 

DOE is supporting the construction and installation of a low-temperature electrolysis system at the Nine Mile Point station in Oswego, New York. Nine Mile Point would be the first nuclear-powered clean hydrogen production facility in the U.S. and would also use the hydrogen to help cool the plant.

Constellation plans to begin producing hydrogen there before the end of 2022.

The utility also partnered with NYSERDA on a separate project to power a fuel cell at the facility and will start providing additional power to the grid in 2025. 

Davis–Besse Nuclear Power Station (Oak Harbor, OH)

Energy Harbor is working to demonstrate a low-temperature electrolysis system at the Davis–Besse Nuclear Power Station. The single unit reactor is expected to produce clean hydrogen by 2023.

Energy Harbor is part of a larger group called the Great Lakes Clean Hydrogen (GLCH) coalition. GLCH aims to develop a Midwestern regional hydrogen hub and is applying for DOE funding

Hydrogen produced at Davis-Besse could support local manufacturing and transportation services, including fuel for a local bus fleet.

Prairie Island Nuclear Generating Plant (Red Wing, MN)

Xcel Energy is working on a demonstration project coupling Bloom Energy’s high-temperature electrolysis with the Prairie Island nuclear plant in Red Wing, Minnesota.

Engineering for the Xcel-Bloom 240 KW demonstration is currently underway, with construction expected to begin in late 2023 and power-on expected in early 2024.

Palo Verde Generating Station (Tonopah, AZ)

Finally, DOE is negotiating an award with Arizona Public Service (APS) and PNW Hydrogen to demonstrate another low-temperature electrolysis system at the Palo Verde Generating Station in Tonopah, Arizona.

The hydrogen would be used to produce electricity during times of high demand or to make chemicals and other fuels. The project could start producing hydrogen in 2024.

According to the DOE, a single 1,000 MW nuclear reactor could produce more than 150,000 metric tons of hydrogen each year. Ten nuclear reactors could provide about 1.5 million metric tons annually or 15% of current hydrogen produced in the United States, the DOE said. 

Constellation said it plans to ask the Nuclear Regulatory Commission (NRC) to extend the operating licenses of its Clinton and Dresden nuclear plants in Illinois by an additional 20 years.

If approved by the NRC, Clinton could operate until 2047 and Dresden could operate until 2049 (Unit 2) and 2051 (Unit 3).

The move marks a reversal in fortune for both power plants, which less than 18 months ago were on a road to early retirement due to unfavorable economics.

Clinton is currently licensed to operate through April 2027 and Dresden is currently licensed to operate until 2029 (Unit 2) and 2031 (Unit 3), after receiving its first NRC license renewal in 2004.

Located in Morris Illinois, the two-unit Dresden Generating Station generates close to 1,800 MW of electricity at capacity. Units 2 and 3 were put into service in the 1970s and are General Electric boiling water reactors. Unit 1 was previously retired.

Clinton Power Station, appropriately in Clinton, Illinois, also has a single GE boiling water reactor. The plant can produce up to 1,080 MW and began commercial operation in 1987.

Clinton and Dresden, along with three other Illinois plants, were headed toward early retirement as their operations increasingly were unprofitable. But, in July 2021, an Illinois bill made the state’s nuclear fleet a key part of plans to reach net zero carbon emissions in power generation by 2050. The measure included keeping carbon-free nuclear generation in the mix, while also increasing investment in renewable energy projects.

The move came just days after Exelon filed its decommissioning plan with federal regulators. The utility had planned to close its Byron and Dresden nuclear power plants in Illinois, short of a deal to help improved reactor plant economics.

The federal Inflation Reduction Act (IRA) passed in August includes a nuclear production tax credit aimed at supporting continued operation of the nation’s nuclear fleet for at least nine years.

Argonne National Laboratory and Constellation Energy reached a long-term agreement to develop technologies for more efficient, carbon-free power generation.

The agreement would support various projects through October 2028. One such project would focus on the use of hydrogen from nuclear power to store and transmit energy in back-up power, transportation and a variety of other applications.

Researchers at Argonne are already working with Constellation to assess market demand for hydrogen, as well as the environmental and economic impacts of hydrogen production, storage and delivery.

“This agreement can help align our research and development at the laboratory, because it gives us much better insight into what industry actually needs,” said Mark Petri, Grid Security and Resilience Lead at Argonne. “The industry benefits because they get the power of Argonne National Laboratory’s capabilities and expertise to address specific technical issues that they may have.”

"Constellation is an ideal industry partner, given their commitment to clean, reliable power generation and their willingness to be pioneers for new energy technologies.” – Mark Petri, Grid Security and Resilience Lead at @argonne. https://t.co/bb3TbVoE7q

— Constellation (@ConstellationEG) September 22, 2022

In a report recently released by Constellation, the company said it plans to capitalize on the 24/7 heat and electricity production of its nukes to produce hydrogen for power generation and other industries.

Constellation is implementing a pilot project with the U.S. Department of Energy to demonstrate hydrogen production, storage and on-site use from nuclear power through Nel Hydrogen’s 1 MW electrolyzer powered by its Nine Mile Point Nuclear Station in Oswego, New York. The project is expected begin producing hydrogen before the end of 2022.

Constellation is highlighting how its nuclear power plants will be used in the production of hydrogen, as well as to power direct air capture (DAC) technology.

The power generation spinoff of Exelon released its first sustainability report September 7. It details a “clean energy center” model at the company’s nuclear plants, which make up 25% of the U.S. fleet.

For one thing, the company said it plans to capitalize on the 24/7 heat and electricity production of its nukes to produce hydrogen for power generation and other industries.

Constellation is implementing a pilot project with the U.S. Department of Energy to demonstrate hydrogen production, storage and on-site use from nuclear power through Nel Hydrogen’s 1 MW electrolyzer powered by its Nine Mile Point Nuclear Station in Oswego, New York. The project is expected begin producing hydrogen before the end of 2022.

Hydrogen demand is expected to increase to as much as 41 million metric tons per year by 2050, a four-fold increase compared to the current demand. Hydrogen is being blended with traditional gas-fired turbines in power generation applications. However, it also is an important energy resource in industrial and transportation applications.

Through a separate DOE grant, Constellation is exploring the potential for direct air capture technology at its Byron nuclear plant in Illinois. DAC would capture CO2 directly from the atmosphere. Credits are offered for DAC technology in the recently enacted Inflation Reduction Act.

In the proposed study, a chemical solution would be added to water flowing through the facility’s main condenser on the non-nuclear side of the Byron plant. After traveling through the condenser, the water would travel out to the cooling towers, where CO2 in the air would attach itself to the chemical solution and be captured and sequestered.

The study, which is expected to finish in 2023, is designed to take advantage of the flow of clean water vapor from the plant’s cooling towers. Constellation said it could lead to a nuclear plant becoming a DAC hub or inform any future decisions around how and where the technology might be integrated with a nuclear plant.

Overall, 90% of Constellation’s generation comes from nuclear, solar, wind and hydroelectric resources. The company has a goal to generate 95% clean energy by 2030 and 100% by 2040.

According to the sustainability report, scope 1 emissions from Constellation generators increased by 3% in 2021, from 8 million metric tons in 2020 to 8.25 million metric tons. However, Constellation said the increase was in comparison to 2020, which experienced low natural gas power generation due to the COVID-19 pandemic.