Ameresco Begins Construction of Biogas Cogeneration Project in Sacramento, California
Ameresco, Inc. (AMRC) secures a $140M contract to develop a biogas cogeneration facility for the Sacramento Area Sewer District. The project will utilize biogas from the EchoWater Resource Recovery Facility to generate renewable electricity and heat, promoting environmental sustainability and resource recovery.
The contract secured by Ameresco to develop a biogas cogeneration facility represents a significant commitment to sustainable energy practices. The facility's use of biogas to generate both electricity and heat is a notable example of a closed-loop system , which is increasingly sought after in efforts to reduce carbon footprints. The integration of fuel cell and engine technology demonstrates an innovative approach to enhancing efficiency and reducing emissions, aligning with global trends towards cleaner energy production.
From a renewable energy perspective, the project's potential for hydrogen production is particularly interesting. Hydrogen is gaining attention as a clean fuel alternative and the EchoWater Facility's future capability to produce hydrogen could position it at the forefront of this emerging market. This could have implications for the broader energy sector, potentially influencing energy stock valuations as investors look for companies that contribute to a sustainable energy future.
The partnership between Ameresco and SacSewer underscores a growing trend of public entities taking proactive steps towards environmental sustainability. SacSewer's initiative to convert biogas into a resource aligns with state and federal policies encouraging resource recovery and renewable energy adoption. Such projects often receive support in the form of grants, tax incentives, or favorable regulatory conditions, which can enhance the financial feasibility and attractiveness of these investments.
For stakeholders, the long-term benefits include potentially reduced operational costs due to the on-site generation of energy and the project could serve as a model for similar facilities across the country. The environmental benefits, coupled with the economic incentives, may influence investor sentiment positively, potentially affecting the stock market as investors look for companies with strong environmental, social and governance (ESG) profiles.
The nearly $140M investment into the biogas cogeneration facility by Ameresco represents a substantial capital expenditure with implications for the company's financials. The project's completion timeline extending to July 2026 suggests a long-term strategic investment, which could impact cash flows and earnings projections. Investors will likely monitor the project's progress and any potential impact on Ameresco's revenue streams, particularly considering the growing market for renewable energy solutions.
Moreover, the project's success could open doors for Ameresco to secure similar contracts, thus expanding its market presence and potentially improving its competitive edge. As the renewable energy market expands, Ameresco's stock could see increased interest from investors focusing on sustainable investments. However, the inherent risks associated with large-scale construction projects, such as delays or cost overruns, must be considered when evaluating the company's financial outlook.
04/08/2024 - 08:05 AM
Project will use biogas produced by the largest inland sewage discharger west of the Mississippi River—the EchoWater Resource Recovery Facility—to generate heat and power.
FRAMINGHAM, Mass. & SACRAMENTO, Calif. --(BUSINESS WIRE)--
Ameresco, Inc. , (NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, today announced it entered a nearly $140M Elk Grove, California .
This on-site renewable energy facility will beneficially utilize biogas (methane), a byproduct of the EchoWater Facility’s solids treatment process, to produce renewable electricity and heat for the EchoWater Facility through an integrated 13.4 MW cogeneration plant that will utilize fuel cell and engine technology. By incorporating the fuel cell system, the project will have exceptional efficiency and reduced pollutant emissions, making it a clean, reliable baseload dispatchable resource. Additionally, the system will allow for the expandability to produce hydrogen in the future.
“SacSewer is committed to being a leader in environmental stewardship. Through our sustainable efforts in resource recovery, we maximize the reuse of treatment process by-products such as biogas,” shared Christoph Dobson, SacSewer’s General Manager. “This project is yet another example of how we’re working every day to fulfill our mission of protecting public health and the environment by collecting, treating, and recovering resources from sewage.”
“We are thrilled to partner with SacSewer, supporting their efforts to optimize the use of the biogas that is generated as a byproduct of the sewage treatment process,” said Michael Bakas, Executive Vice President of Ameresco. “Capturing and repurposing biogenic methane, that is already in our environment and produced by society, to displace fossil fuel is a powerful example of the circular economy in action, where waste is not discarded, but turned into a valuable asset. This voluntary act by SacSewer, backed by a material investment into this advanced renewable energy center, speaks volumes to their commitment to our environment and their surrounding community.”
Construction of the new facility is expected to be completed by July 2026.
To learn more about the energy efficiency solutions offered by Ameresco, visit www.ameresco.com/energy-efficiency/ .
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 .
About the Sacramento Area Sewer District
The Sacramento Area Sewer District (SacSewer) is the Sacramento region’s largest sewage collection, treatment, and resource recovery utility—providing service to more than 1.6 million people. They are the second largest sewage collection utility in California , and they own and operate the second largest water resource recovery facility of its kind in the nation—the EchoWater Resource Recovery Facility located near Elk Grove . Learn more at sacsewer.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 awarded backlog as of December 31, 2023.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240408591971/en/
Ameresco: Leila Dillon, 508-661-2264, news@ameresco.com
Source: Ameresco, Inc.
What is the contract value for Ameresco, Inc. (AMRC) to develop the biogas cogeneration facility?
Ameresco, Inc. (AMRC) secured a nearly $140M contract for this project.
Where will the biogas cogeneration facility be developed by Ameresco, Inc. (AMRC)?
The facility will be developed at the EchoWater Resource Recovery Facility near Elk Grove, California.
What technology will be used in the cogeneration plant at the EchoWater Facility?
The integrated 13.4 MW cogeneration plant will utilize fuel cell and engine technology.
When is the construction of the new facility expected to be completed?
Construction is expected to be completed by July 2026.
Who is the General Manager of SacSewer, as mentioned in the press release?
Christoph Dobson is the General Manager of SacSewer.
