Ameresco lands 25-year solar project at Canadian base

FRAMINGHAM, Mass. & OROMOCTO, New Brunswick (NYSE:BC) - Ameresco, Inc. (NYSE: NYSE:AMRC), an energy solutions provider, has secured a contract for a significant solar energy project at the 5th Canadian Division Support Base in Oromocto, New Brunswick. The initiative is part of Canada’s Federal Buildings Initiative aimed at enhancing energy efficiency and sustainability in federal facilities.

The Gagetown Solar Project, valued at CAD $26.7 million, will feature an 8.9 MWdc/7.35 MWac ground-mounted solar energy system, expected to supply around 20% of the base’s electricity requirements. The system will produce approximately 8,900 MWh of electricity annually, contributing to the Department of National Defence’s goal to lower greenhouse gas emissions. The project aims to prevent about 7,695 metric tons of carbon dioxide from being released into the atmosphere each year. While Ameresco maintains a significant debt burden of $2.27 billion, InvestingPro analysis indicates that analysts have positive expectations for the company’s sales growth in the current year.

Ameresco will not only design and construct the solar system but also operate and maintain it under a 25-year service agreement. The energy produced will be consumed entirely on-site, bolstering the base’s energy security and resilience. The project also promises to reduce utility costs by roughly CAD $1.3 million per year for the base.

The solar array, consisting of 14,496 panels, is set to be integrated with the existing electrical infrastructure of the base, which includes over 200 buildings. Advanced controls and monitoring technology will be employed to ensure optimal performance. Completion of the project is expected by June 2025.

Bob McCullough, President of Ameresco Canada, expressed pride in partnering with the Department of National Defence, emphasizing the project’s contribution to a cleaner and more sustainable future for Canada. The investment in renewable energy is seen as a step towards the country’s sustainability objectives while providing reliable and cost-effective power.

Ameresco’s role in this project is part of its broader commitment to aid customers in the energy transition by reducing costs, enhancing resilience, and supporting decarbonization efforts. The company, founded in 2000, offers a range of services, including energy efficiency solutions, infrastructure upgrades, and distributed energy resources.

The project’s inclusion in Ameresco’s contracted backlog was previously reported as of September 30, 2024. This press release statement provides the basis for the reported information.

In other recent news, Ameresco, a key player in the clean technology sector, had its stock price target reduced from $28 to $23 by analyst Julian Dumoulin-Smith from Jefferies. Despite this adjustment, the firm retained a Hold rating on the stock. Dumoulin-Smith expressed concerns about Ameresco’s upcoming fourth-quarter results, speculating they might align with the lower end of the company’s guidance.

There are expectations that the adjusted earnings per share could potentially fall short, influenced by the realization timing of tax benefits. Dumoulin-Smith anticipates no change in the company’s long-term targets, despite a predicted increase in Energy Assets additions in 2024, and a potential decrease in megawatt additions in 2025.

The report also highlighted potential challenges due to lower D3 Renewable Identification Number prices, which could decrease fiscal year 2025 EBITDA by 2% and EPS by a significant 17%. These recent developments are a part of the evolving landscape that Ameresco navigates as it continues to provide innovative renewable energy solutions.

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