EPC Firm Ameresco Rides U.S. Data Center Wave to Record Backlog

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Ameresco is upbeat about its prospects in the U.S. Power Industry, with its backlog hitting a record high after a slew of awards in the second quarter. The engineering, procurement and construction (EPC) company also is expanding its role in the global RNG market.

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Building Up the Backlog

Ameresco Incorporated, which develops and integrates energy-efficiency and renewable-energy projects in the public and private sectors, saw $1.8 billion worth of new project awards during the second quarter, a quarterly record that was driven by $1.2 billion for data centers. Executives say the backlog is expected to grow further, as demand likely isn't easing.

Industrial Info Resources is tracking about $3.3 billion worth of active and proposed projects featuring Ameresco's services, nearly half of which is attributed to projects with Ameresco as the plant owner.

In a quarterly earnings-related press release, George Sakellaris, the chief executive officer of Ameresco, pointed to "the tremendous momentum we experienced in the Power Infrastructure pillar of our business, which resulted in a record 65% increase in our awarded backlog to $4.4 billion, providing substantial visibility for at least the next three to four years."

During the second quarter, Ameresco added three new data center projects to its awarded backlog, bringing its total to five. In addition, Ameresco is in a joint partnership with the U.S. Navy to develop a data center in Lemoore, California, near a U.S. Naval Air Station. The 100-megawatt (MW) facility will be optimized for artificial intelligence (AI) and supported by dedicated, onsite power-generation infrastructure, including a battery energy-storage system (BESS).

Industrial Info Resources offers more information on this development in its Global Market Intelligence (GMI) Industrial Manufacturing Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

"People are beginning to realize that in order to be successful and win the AI race, they have to develop their own power plants [and] on-site generation," Sakellaris said in an earnings-related conference call. "Our track record with the federal government--building these resiliency power plants with microgrids and so on--is helping us a lot."

The U.S. Department of Defense contracted a joint venture between Ameresco and Hannah Solar Government Services to build an addition to the microgrid for the U.S. Army's ocean terminal in Concord, California, which will generate 6.25 MW from diesel generators. It is expected to finish construction toward the end of the year. Readers can learn more from a detailed project report.

According to Industrial Info Resources data, more than $2 billion of the total investment featuring Ameresco's services is attributed to Power Industry developments, more than 75% of which is attributed to power-generation and energy-storage projects. Ameresco is developing its own storage project: the Snohomish County BESS in Everett, Washington. The stand-alone unit will hold 25 MW to serve the Arlington Municipal Airport.

Readers can learn more about the Snohomish County project in a detailed plant profile and project report.

By the Numbers

• About $3.3 billion: Total investment value of active and proposed projects featuring Ameresco's services
• More than $2 billion: Total investment featuring Ameresco's services that is attributed to Power Industry developments
• $4.4 billion: Total awarded backlog for Ameresco, as of the end of the second quarter

Seizing the RNG Mantle

During the second quarter, Ameresco announced its first delivery of renewable natural gas (RNG) into the European compliance markets. Neogenyx Fuels--a 70:30 joint venture between Ameresco's renewable fuels segment, which is the majority owner, and HA Sustainable Infrastructure Capital--started construction earlier in the summer on its RNG plant in Broken Bow, Nebraska. The facility is designed to produce 1.2 million British thermal units per year of RNG from cattle manure.

Ameresco also closed the Neogenyx joint venture during the second quarter, after securing $400 million in financing. "The development opportunities are increasing, and we're actually seeing more opportunities now--not only organic, but maybe some project acquisitions that are coming up," Sakellaris said about the venture in the earnings call. Readers can learn more about the project in a detailed plant profile and project report.

Ameresco reported net income of $9.7 million for the second quarter, a 24.4% decrease from the same period last year, while revenues stood at $515.46 million, a 9.14% increase. Executives attributed the dip in income to increased costs from the company's portfolio expansion, as well as a reduced relative tax benefit.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed projects featuring Ameresco's services.

Key Takeaways

• Ameresco announced a quarterly record in project awards that was driven by $1.2 billion for data centers.
• The EPC company added three new data center projects to its awarded backlog, bringing its total to five.
• Ameresco announced its first delivery of RNG into the European compliance markets during the second quarter.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).