Ameresco Construction Underway for a $33 Million Energy Project to Reduce Emissions while Modernizing Infrastructure at Key U.S. National Archives and Records Administration Sites

Rhea-AI Summary

Ameresco announced the commencement of a $33 million Energy Savings Performance Contract (ESPC) project at the U.S. National Archives and Records Administration (NARA) sites. This initiative aims to modernize infrastructure and enhance energy efficiency in College Park, MD, and Washington, DC. Expected outcomes include annual savings of $2 million, a 72% reduction in fossil fuel use, 48% reduction in utility water use, and 28% reduction in electricity. The project features upgrades such as building automation systems, heating and cooling optimizations, LED lighting, and more. Supported by a U.S. Department of Energy grant, Ameresco will also integrate solar PVs, a new chiller, and EV charging stations. This project aligns with Executive Order-14057, targeting net-zero emissions.

Positive

• Expected $2 million in annual savings.
• 72% reduction in fossil fuel consumption.
• 48% reduction in utility water use.
• 28% reduction in electricity use.
• $33 million project funded with zero-dollar capital outlay for NARA.
• Integration of renewable energy sources like solar PV.
• Modernization of critical infrastructure including BAS, heating and cooling systems, and LED lighting.
• Support from U.S. Department of Energy's AFFECT Program.

Negative

• Initial high capital expenditure of $33 million.
• Potential project execution risks leading to delays or budget overruns.
• Dependency on external grants and funding for project completion.
• Long payback period for achieving the projected $2 million annual savings.

Insights

Financial Analyst

The $33 million Energy Savings Performance Contract (ESPC) undertaken by Ameresco represents a significant investment aimed at enhancing energy efficiency and modernizing infrastructure at key NARA sites. The project is expected to achieve approximately $2 million in annual savings, a noteworthy figure that highlights the immediate financial benefits. These savings will positively impact Ameresco's revenue streams and potentially improve its profitability margins.

Given the company's specialization in energy efficiency and renewable energy, this contract reinforces its market position and showcases its capabilities in executing large-scale government projects. Importantly, the use of ESPCs, which involve zero-dollar capital outlay for NARA, suggests a strong value proposition that Ameresco can leverage for future contracts, particularly with other federal agencies looking to follow NARA's example.

In the short term, investors might see this as a positive development due to the immediate financial gains and the reinforcement of Ameresco’s market position. Long-term benefits include potential repeat business and enhanced reputation, which can lead to additional contracts and revenue growth. However, it is important to monitor the execution phase for any cost overruns or delays that could impact financial outcomes.

Rating: 1

Environmental Expert

The environmental implications of this project are considerable. The expected 72% reduction in fossil fuel consumption, 48% reduction in utility water use and 28% reduction in electricity use signal significant strides towards sustainability. These changes align with the goals set forth by Executive Order-14057, which mandates federal agencies to achieve net-zero emissions. Such a project not only supports NARA's environmental objectives but also positions Ameresco as a leader in the cleantech sector, potentially attracting investors focused on Environmental, Social and Governance (ESG) criteria.

Furthermore, the incorporation of solar rooftop PV and EV charging infrastructure indicates Ameresco’s commitment to integrating renewable energy solutions. This move enhances the company’s portfolio in renewable energy and could set a precedent for future federal projects.

From an investor's perspective, the long-term environmental benefits can translate into regulatory compliance and avoidance of potential environmental penalties. Additionally, the focus on sustainability can attract ESG-conscious investors, potentially increasing demand for Ameresco’s stock.

Rating: 1

Market Research Analyst

Ameresco's ongoing collaboration with NARA, spanning nearly two decades, is a testament to its reliability and capability in handling large-scale projects. The ESPC model, which allows for modernization with no upfront capital from NARA, is particularly attractive in the current economic climate where budget constraints are common.

This project could also serve as a case study for Ameresco, demonstrating the tangible benefits of ESPCs to other potential clients in both the public and private sectors. The proven track record might encourage other federal agencies and large organizations to consider similar initiatives, expanding Ameresco’s market opportunities.

In the short term, investors might see this project as an assurance of stable revenue from government contracts. In the long term, the sustained relationship with a federal entity enhances Ameresco's credibility and could pave the way for additional contracts, expanding its market share.

Rating: 1

Upon completion the ESPC project is expected to achieve approximately $2 million in annual savings, a 72% fossil fuel reduction, 48% utility water use reduction, and 28% electricity reduction.

FRAMINGHAM, Mass. & COLLEGE PARK, Md.--(BUSINESS WIRE)-- Ameresco, Inc., (NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, today announced that construction is underway for a $33 million Energy Savings Performance Contract (ESPC) at the U.S. National Archives and Records Administration (NARA) sites in College Park, Maryland, and Washington, DC. The project is designed to enhance energy efficiency across NARA's facilities, leveraging Ameresco’s innovative solutions to achieve significant cost savings and environmental benefits.

National Archives and Records Administration (Photo: Business Wire)

This NARA ESPC project is the latest in a series of energy projects that Ameresco has undertaken in collaboration with NARA over the past 20 years. Ameresco is implementing building automation system (BAS) modernization with advanced sequencing, optimization of heating and cooling systems, building transformer replacements, LED lighting, building envelope improvements, piping insulation, and utility water reduction at NARA’s flagship facilities. Together, these measures are designed to reduce annual fossil fuel consumption by 72%, utility water use by 48%, and electricity use by 28%.

Thanks to a grant from the U.S. Department of Energy’s Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) Program, NARA and Ameresco are now collaborating to add more energy efficient infrastructure into the project featuring more solar rooftop PV, a new chiller, and electrical vehicle (EV) Charging.

The ESPC delivery model was critical to NARA’s ability to replace aging infrastructure and reduce their energy consumption and carbon emissions. On previous ESPC projects supporting NARA, Ameresco deployed high-efficiency equipment to address legacy infrastructure issues, harvesting substantial savings. This latest ESPC is focused on bringing NARA’s facilities closer to net-zero emissions as required by Executive Order-14057.

“Working closely with NARA, Ameresco developed this project in support of the Agency’s modernization efforts with zero-dollar capital outlay and NARA’s Strategic Plan of increased public access to federal records through digitization and on-line delivery” said Nicole Bulgarino, Executive Vice President, and General Manager at Ameresco. "Working in collaboration with Ameresco for almost two decades, NARA's leadership in embracing sustainable solutions serves as a playbook for federal agencies nationwide. Together, we will continue to drive energy efficiency and positive change.”

To learn more about Ameresco, visit www.ameresco.com.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes solutions that help customers reduce costs, decarbonize to net zero, and build energy resiliency while leveraging smart, connected technologies. From implementing energy efficiency and infrastructure upgrades to developing, constructing, and operating distributed energy resources – we are a trusted sustainability partner. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state, and local governments, utilities, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters 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 entry into a project contract is not necessarily indicative of the timing or amount of revenue from such contract, of the company’s overall revenue for any particular period or of trends in the company’s overall total project backlog. This project was included in our previously reported contracted backlog as of March 31, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240528431554/en/

Media Contact:

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

Source: Ameresco

FAQ

What is the value of Ameresco's new project with NARA?

Ameresco's new project with NARA is valued at $33 million.

What are the expected annual savings from Ameresco's project at NARA sites?

The project is expected to achieve approximately $2 million in annual savings.

How much will fossil fuel consumption be reduced by Ameresco's NARA project?

The project aims to reduce fossil fuel consumption by 72%.

What are the environmental benefits of Ameresco's project at NARA?

The project will reduce fossil fuel consumption by 72%, utility water use by 48%, and electricity use by 28%.

What infrastructure improvements are included in Ameresco's NARA project?

Improvements include building automation systems, heating and cooling optimizations, LED lighting, and more.

What renewable energy components are being added to NARA's infrastructure?

The project will add solar rooftop PV, a new chiller, and EV charging stations.

Which program is supporting Ameresco's energy-efficient upgrades at NARA?

The U.S. Department of Energy's Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) Program is supporting the project.

How does Ameresco's project align with Executive Order-14057?

The project aims to bring NARA's facilities closer to net-zero emissions, aligning with the goals of Executive Order-14057.