Constellation Energy, Chromatin Announce Partnership

Constellation Energy (NYSE:CEG), through two of its subsidiaries, and Chromatin Inc., a supplier of biomass feedstock for energy producers, announced that they had signed a memorandum of understanding that could supplement current fuels at two California power plants with a sustainable supply of renewable biomass grown specifically for use as fuel in the plants.

In anticipation of this, Chromatin is growing three fields of biomass sorghum, a non-food crop that has a high-energy content, is adapted to marginal lands, and requires less than half the water and chemicals of field crops such as corn or sugar cane.

The harvested biomass will be test burned to determine the feasibility of using sorghum as a fuel source to generate electricity at two power plants in California that are owned jointly by Constellation Energy and North American Power Group.

Constellation Energy (NYSE:CEG) has a potential upside of 5.9% based on a current price of $39.67 and an average consensus analyst price target of $42.

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