Ameresco Awarded Solar Energy and Resiliency Project at Gagetown Base by the Canadian Department of National Defence (DND)

Rhea-AI Summary

Ameresco (NYSE: AMRC) has been awarded a CAD $26.7 million solar energy project at the 5th Canadian Division Support Base in Oromocto, New Brunswick. The project includes an 8.9 MWdc/7.35 MWac ground-mounted solar system that will generate approximately 8,900 MWh of electricity annually, meeting 20% of the base's electricity needs.

The Gagetown Solar Project will feature 14,496 solar panels and is expected to prevent 7,695 metric tons of CO2 emissions annually while saving the base approximately CAD $1.3 million in yearly utility costs. Ameresco will provide full operations and maintenance services under a 25-year contract, with project completion expected by June 2025.

This initiative supports Canada's Federal Buildings Initiative and the government's commitment to procure 100% clean electricity for federal facilities by 2025.

Positive

• Secured CAD $26.7 million contract for solar project implementation
• 25-year operations and maintenance contract ensuring long-term revenue stream
• Project will generate approximately CAD $1.3 million in annual utility cost savings

Negative

• None.

Insights

Energy Infrastructure Analyst

This CAD $26.7 million contract represents a strategic win for Ameresco, particularly valuable for its 25-year operations and maintenance component that ensures predictable, long-term recurring revenue. The project's economics are compelling, with projected annual utility savings of CAD $1.3 million for the base, suggesting a payback period of approximately 20 years for the client while providing Ameresco with steady service revenue.

The contract's structure demonstrates Ameresco's evolving business model, combining upfront project revenue with long-term maintenance services. This approach not only generates immediate revenue but also builds a growing base of recurring maintenance income, which typically carries higher margins and provides better earnings visibility for investors.

The military sector represents a particularly attractive market segment due to its substantial infrastructure footprint and strong credit quality. With over 200 buildings at Gagetown Base alone, this project could serve as a reference for similar installations across Canada's military infrastructure. The Canadian government's commitment to 100% clean electricity for federal facilities by 2025 suggests significant potential for additional contracts.

The project's scope - 14,496 solar panels generating 20% of the base's electricity needs - showcases Ameresco's capability to handle large-scale federal projects. This positions the company favorably for future government contracts, particularly as Canada accelerates its clean energy transition. The long-term nature of these contracts provides valuable revenue visibility and helps insulate Ameresco from economic cycles.

8.9 MW solar project designed to prevent 7,695 metric tons of carbon dioxide from entering the atmosphere each year

Ameresco will provide full operations and maintenance services for the system over the next 25 years, ensuring long-term performance and cost savings

FRAMINGHAM, Mass. & OROMOCTO, New Brunswick--(BUSINESS WIRE)-- Ameresco, Inc., (NYSE: AMRC), a leading energy solutions provider dedicated to helping customers navigate the energy transition, has been awarded a major solar energy and resiliency project at the 5th Canadian Division Support Base (CDSB) in Oromocto, New Brunswick. This large-scale solar project represents a critical step toward supporting the Government of Canada’s commitment to procure 100% clean electricity for federal facilities by 2025.

© DND-MND Canada 2025

The Gagetown Solar Project, a CAD $26.7 million initiative, is set to deliver an 8.9 MWdc/7.35 MWac ground-mounted solar energy system designed to provide approximately 8,900 MWh of electricity annually to the base. This project is expected to generate around 20% of the base’s electricity needs, significantly contributing to the Department of National Defence’s efforts to reduce greenhouse gas emissions. When running at full capacity, the project will prevent approximately 7,695 metric tons of carbon dioxide from entering the atmosphere each year and contribute to meeting emissions targets in the Defence Climate and Sustainability Strategy 2023-2027 - Canada.ca.

The 5 CDSB Gagetown solar project, which includes the placement of 14,496 solar panels across the base, will be operated and maintained by Ameresco under a 25-year contract. The energy generated will be used entirely on-site, providing the base with long-term energy security and resilience. In addition to reducing emissions, the project is expected to save the base approximately CAD $1.3 million annually in utility costs.

The project is part of Canada’s Federal Buildings Initiative, which seeks to improve the energy efficiency and sustainability of federal buildings across the country. The initiative at Gagetown is particularly significant given the size of the base, which encompasses more than 200 buildings with a total floor area exceeding 525,000 square meters.

Ameresco will design, engineer, procure, and construct the solar system, integrating it smoothly with the base's existing electrical infrastructure. The system is equipped with advanced controls and monitoring technology to optimize performance throughout its lifecycle. The project is expected to be completed by June 2025, and Ameresco will provide full operations and maintenance services for the system over the next 25 years, ensuring long-term performance and cost savings.

“We’re proud to partner with the Department of National Defence on this important project,” said Bob McCullough, President of Ameresco Canada. “This solar energy solution is more than about powering Gagetown today — it’s about creating a cleaner, more sustainable future for Canada. By investing in renewable energy, we’re helping the country move closer to its long-term sustainability goals while delivering reliable, cost-effective power for years to come.”

For more information about Ameresco and its renewable energy solutions, visit www.ameresco.com.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading energy solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering diversified generation solutions to Federal, state and local governments, utilities, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com.

The announcement of a customer’s project contract is not necessarily indicative of the timing or amount of revenue from such contract, of Ameresco’s overall revenue for any particular period or of trends in Ameresco’s overall total project backlog. This project was included in Ameresco’s previously reported contracted backlog as of September 30, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213093099/en/

Media Contact:

Ameresco: Leila Dillon, 508-661-2264, news@ameresco.com

Source: Ameresco, Inc.

FAQ

What is the value of Ameresco's (AMRC) Gagetown solar project contract?

The Gagetown Solar Project is valued at CAD $26.7 million.

How much energy will AMRC's Gagetown solar project generate annually?

The project will generate approximately 8,900 MWh of electricity annually, meeting 20% of the base's electricity needs.

What are the expected cost savings from AMRC's Gagetown solar project?

The project is expected to save the base approximately CAD $1.3 million annually in utility costs.

When will Ameresco (AMRC) complete the Gagetown solar project?

The project is expected to be completed by June 2025.

How long is AMRC's maintenance contract for the Gagetown solar project?

Ameresco will provide operations and maintenance services for the system over a 25-year contract period.

What is the environmental impact of AMRC's Gagetown solar project?

The project will prevent approximately 7,695 metric tons of carbon dioxide from entering the atmosphere annually.