Dive Brief:
- Walmart entered a long-term power purchase agreement with Constellation Energy last month that will provide the retailer with nuclear energy, environmental attributes and energy capacity to support its operations in Illinois, according to a June 23 press release.
- The PPA will give Walmart up to 176 megawatts of nuclear-generated electricity over two 15-year periods beginning in 2029 and 2030, according to the release issued by Constellation.
- The deal is Walmart’s first nuclear PPA, and Constellation said in the release that its “among the first of its kind between a large retailer and a nuclear energy facility in the United States.” While nuclear PPAs have increased in recent years, the shift has largely been led by tech companies working to meet the energy demands of artificial intelligence.
Dive Insight:
Walmart has a goal of reaching net-zero emissions across its global operations — including scope 1 and scope 2 emissions — by 2040, with interim targets of powering half of its global operations with renewables by 2025 and the entirety of its operations powered by renewables by 2035, according to its fiscal year 2025 ESG report. The company said in the report that 48.5% of its global electricity needs were supplied by renewable energy sources in 2024 and 30.6% of its electricity needs were met through renewable energy contracts.
Constellation — the nation’s largest producer of clean, zero-emissions energy — said the deal will provide “enough new power to the grid” for the perishable distribution center Walmart is developing in the state. Shayne Wahlmeier, Walmart’s U.S. senior vice president of energy, said in the release that the deal helps support the company’s new operations in Illinois and advances its strategy “in a way that prioritizes affordable, reliable, and clean energy” for Walmart and and the communities it serves.
In addition to the distribution center it’s developing, Walmart has an estimated 175 stores and clubs with over 55,000 associate employees in Illinois, the release said.
The retail giant will get power from Constellation’s Dresden Clean Energy Center in Illinois, which Constellation relicensed in December for operation at its generators through 2049 and 2051, according to the release. The deal includes 30 MW of expanded generation capacity for the power plant.
Constellation Chief Commercial Officer Jim McHugh said “Walmart's commitment enables meaningful investment” in the Dresden Center,” and will aid energy reliability, sustain the local economy and lead to “more dependable, emissions-free energy onto the Illinois power grid."
The deal follows a PPA that Constellation signed with Meta last year that will keep another Illinois nuclear plant, the Clinton Clean Energy Center, online for an additional 20 years.
Corporate energy buyers announced the procurement of approximately 5.1 gigawatts of nuclear energy in 2025, more than twice the 2.2 GW procured in 2024, according to a March report from the Corporate Energy Buyers Association. The increase came as “clean firm technologies — including nuclear, geothermal, hydropower, fusion, and carbon capture and storage — are playing an increasingly prominent role in buyer portfolios,” according to the report.
