FRAMINGHAM, Mass. & COLLEGE PARK, Md. – Ameresco, Inc. (NYSE: NYSE:AMRC), a cleantech integrator, has initiated a $33 million project to enhance energy efficiency at the U.S. National Archives and Records Administration (NARA) facilities in Maryland and Washington, D.C. The Energy Savings Performance Contract (ESPC) aims to modernize NARA's infrastructure, resulting in significant reductions in fossil fuel and utility water use, as well as electricity consumption.
The ESPC, supported by the U.S. Department of Energy’s Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) Program, includes the implementation of solar photovoltaic (PV) systems, a new chiller, and electric vehicle (EV) charging stations. These additions are part of a broader effort to bring NARA's facilities closer to net-zero emissions, aligning with federal sustainability goals outlined in Executive Order-14057.
Ameresco's approach to the project involves building automation system modernization, optimization of heating and cooling systems, transformer replacements, LED lighting upgrades, building envelope improvements, and piping insulation. The anticipated outcomes include a 72% reduction in fossil fuel consumption, a 48% decrease in utility water use, and a 28% cut in electricity use, which together are expected to yield about $2 million in annual savings for NARA.
This collaboration between NARA and Ameresco is not new; the two have been working together for nearly two decades on energy projects. The ESPC delivery model has been essential for NARA to replace outdated infrastructure and reduce energy use and carbon emissions without requiring upfront capital investment.
The project is part of Ameresco's portfolio, which focuses on helping customers reduce costs and decarbonize through innovative and connected technologies. While the commencement of the ESPC is significant, it does not necessarily indicate immediate revenue for Ameresco, as the project was already accounted for in the company's contracted backlog as of March 31, 2024.
This announcement is based on a press release statement.
InvestingPro Insights
Ameresco Inc . (NYSE: AMRC) has shown a remarkable performance in the stock market with a strong return over the last month, boasting a 58.1% increase. This uptrend continues from the previous quarter, with a three-month price total return of 66.72%. The company's market capitalization stands at a robust $1.78 billion, reflecting investor confidence in its business model and growth prospects.
Despite this positive momentum, Ameresco's financial health is a mixed bag according to InvestingPro Tips. The company operates with a significant debt burden and is quickly burning through cash, which could pose risks for long-term sustainability. Additionally, the stock is currently trading at a high earnings multiple, with a P/E ratio of 30.38, and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 28.64. This suggests that the stock may be valued optimistically in relation to its earnings power.
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As Ameresco embarks on this ambitious $33 million energy efficiency project with the U.S. National Archives and Records Administration, investors may want to keep an eye on how the company's financial health and stock performance evolve in tandem with its project execution and potential impact on future revenues.
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