big deal

Houston-based Calpine Corp. to be acquired in clean energy megadeal

Houston's Calpine Corp. will be acquired by Baltimore-based nuclear power company Constellation Energy Corp. Photo via DOE

Baltimore-based nuclear power company Constellation Energy Corp. and Houston-based Calpine Corp. have entered into an agreement where Constellation will acquire Calpine in a cash and stock transaction with an overall net purchase price of $26.6 billion.

The companies say the agreement has the potential to create America’s “largest clean energy provider,” with what is reported to be the largest fleet of U.S. power stations servicing about 2.5 million customers.

“This is an incredible opportunity to bring together top tier generation fleets, leading retail customer businesses and the best people in our industry to help drive a stronger American economy for a cleaner, healthier and more sustainable future,” Andrew Novotny, president and CEO of Calpine, said in a news release.

Calpine is the largest U.S. producer of energy from low-emission natural gas generation and oversees the largest geothermal generation operation in the U.S. Last year it announced plans to build the Baytown Carbon Capture and Storage Project (Baytown CCS Project), a first-of-its-kind carbon capture demonstration facility, as part of a cost-sharing agreement with the U.S. Department of Energy.

Constellation is considered the top clean energy producer in the U.S., which provides 10 percent of the country’s emissions-free energy. The deal will add to Constellation’s already diverse portfolio of zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration and battery storage.

“Both companies have been at the forefront of America’s transition to cleaner, more reliable and secure energy, and those shared values will guide us as we pursue investments in new and existing clean technologies to meet rising demand,” Joe Dominguez, president and CEO of Constellation, said the release. “What makes this combination even more special is it brings together two world-class teams, with the most talented women and men in the industry, who share a noble passion for safety, sustainability, operational excellence and helping America’s families, businesses and communities thrive and grow. We look forward to welcoming the Calpine team upon closing of this transaction.”

Constellation also announced that it will invest in adding more zero-emission energy to the grid to create “the most reliable generation portfolio in the U.S.” It plans to explore new advanced nuclear projects, invest in renewables and increase the output of existing nuclear plants.

“Together, we will be better positioned to bring accelerated investment in everything from zero-emission nuclear energy to battery storage that will power our economy in a way that puts people and our environment first,” Novotny said in a news release. “It’s a win for every American family and business in our newly combined footprint that wants clean and reliable energy. ECP’s commitment to these goals over the last seven years was critical to the progress we have made as a company and to laying a foundation for future growth.”

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A View From HETI

Google will soon be able to pull from energyRe’s portfolio of more than 600 megawatts of new solar and solar storage projects in South Carolina. Photo via Pixabay

EnergyRe, a developer of large-scale renewable energy projects with headquarters in Houston and New York, has signed a renewable energy agreement that will allow Google to invest in and purchase renewable energy credits (RECs) from its projects under development in South Carolina.

Google will be able to pull from energyRe’s portfolio of more than 600 megawatts of new solar and solar storage projects in the state.

The agreement marks the second partnership between the companies. Last year, energyRe and Google signed a 12-year power purchase agreement in which Google would purchase renewable energy from a 435-megawatt solar project. EnergyRe would supply electricity and RECs generated from the solar project to Google to power the equivalent of more than 56,000 homes.

"Strengthening the grid by deploying more reliable and clean energy is crucial for supporting the digital infrastructure that businesses and individuals depend on," Amanda Peterson Corio, head of data center energy at Google, said in a news release. "Our collaboration with energyRe will help power our data centers and the broader economic growth of South Carolina."

EnergyRe's work includes developing high-voltage transmission, onshore and offshore wind, large-scale solar, distributed generation and storage assets in markets around the United States. Its national onshore utility-scale portfolio includes 1,520 megawatts of contracted solar assets and 398 megawatt-hours of contracted battery storage assets.

"This agreement is a milestone in energyRe's mission to develop innovative and impactful clean energy solutions for the future," Miguel Prado, CEO of energyRe, added in the news release."We're honored to partner with Google to help advance their ambitious sustainability and decarbonization objectives while delivering dependable, locally sourced clean energy to meet growing energy demands."

Google aims to achieve net-zero carbon emissions across its operations and value chain by 2030.

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