Safe & Green Holdings Enters Design/build Agreement With Talent Services Llc for the Design and Production of Eight Units Currently in Concept Stage
Safe & Green Holdings Corp. (SGBX) has entered into a design/build agreement with Talent Services to produce modular homes meeting the Department of Energy's Net-Zero Energy Ready Requirements. The project includes the initial production of 8 units in North Carolina by the fourth quarter of 2024, with a potential total of approximately 600 units over the next seven years.
The announcement by Safe & Green Holdings Corp. regarding the design/build agreement with Talent Services LLC for the development of modular structures adhering to the Department of Energy's Net-Zero Energy Ready Requirements presents a significant development within the modular construction sector. The agreement's scope, with a potential of 600 units over a seven-year period, indicates a substantial long-term commitment and a steady revenue stream for Safe & Green Holdings. It is essential to highlight the growing demand for sustainable living solutions, which could position the company favorably in a market increasingly driven by environmental considerations.
From a market perspective, the project may serve as a benchmark for the company's capabilities in sustainable construction, potentially attracting additional clients interested in eco-friendly building practices. However, it's imperative to monitor the execution of the initial phase, as it will provide critical insights into the company's ability to scale up and meet the project's demands while adhering to strict energy efficiency standards.
The commitment to Net-Zero Energy Ready modular homes is a testament to the construction industry's shift towards sustainability. Net-zero energy-ready units are designed to consume only as much energy as can be produced by renewable sources on-site, a key factor in reducing the carbon footprint of residential living. This project by Safe & Green Holdings aligns with broader environmental goals and could set a precedent for future construction projects.
It is critical to consider the technical feasibility and cost implications of such sustainable practices. While the initial investment in net-zero energy-ready homes may be higher than traditional construction, the long-term energy savings and environmental benefits could be substantial. Additionally, the success of this project could influence policy makers and encourage the adoption of similar standards in building codes, further driving the market for sustainable construction.
The financial implications for Safe & Green Holdings Corp. following this design/build agreement are multifaceted. On one hand, the projected 600 units represent a significant increase in the company's production scale, which could lead to economies of scale and improved profit margins over time. On the other hand, the specialized nature of Net-Zero Energy Ready construction may require substantial upfront investment in research, design and materials, which could impact the company's short-term financials.
Investors should consider the company's current financial health and its ability to absorb these initial costs without jeopardizing its liquidity. Moreover, the potential revenue from this project should be weighed against the risks associated with the adoption of new technologies and the possibility of regulatory changes affecting the sustainability sector. The financial performance of the initial units delivered in 2024 will be a important indicator of the project's viability and its impact on the company's stock valuation.
04/11/2024 - 09:00 AM
Homes designed to meet the Department of Energy’s Net-Zero Energy Ready Requirements
Agreement has the potential for a total of approximately 600 units over the next 7 years
Rendering of Units
MIAMI, Fl, April 11, 2024 (GLOBE NEWSWIRE) -- Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe & Green Holdings” or the “Company”), a leading developer, designer, and fabricator of modular structures, announced that the Company has entered into a design/build agreement with Talent Services LLC. The design/build agreement is for the design and production of the first 8 units, ensuring they adhere to the Department of Energy's Net-Zero Energy Ready Requirements.
Paul Galvin, Chairperson and CEO of Safe & Green Holdings, stated, “We are pleased to have been selected by Talent Services LLC to partner with them on this project. I'm particularly eager to integrate our design and modular processes into such a pioneering concept. Engaging in projects of this magnitude allows all participants to strategize and capitalize on the advantages of scale. The project's initial phase involves the development of 6 designs and the production of eight initial units, ranging from one-bedroom, single-story units to three-bedroom two-story units, which are expected to be delivered in North Carolina in the fourth quarter of 2024. This is the initial phase of the project which is anticipated to include the production of an additional 50 units slated for delivery in 2025. The project has the potential for a total of approximately 600 units to be constructed and delivered over the next seven years.”
Tommy Meharey commented, “It is exciting to be advancing in the world of Sustainable Modular Homes and in the implementation of Net Zero Energy. A net-zero energy-ready unit is designed and constructed to a level of performance such that it could, with the addition of solar panels or other renewable energy technologies, achieve net-zero energy performance which aligns closely with Safe and Green's commitment to green, sustainable, modular construction.”
About Safe & Green Holdings Corp.
Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third-party and in-house developers, architects, builders, and owners in achieving faster execution, greener construction, and buildings of higher value. The Company’s subsidiary, Safe and Green Development Corporation, is a leading real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel, sourced from one of SG Holdings’ factories and operated by the SG Echo subsidiary. For more information, visit https://www.safeandgreenholdings.com/
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding the design/build agreement with Talent Services LLC for the design and production of the first 8 units, ensuring they adhere to the Department of Energy's Net-Zero Energy Ready Requirements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, but are not limited to, the Company’s ability to successfully complete the design and production of the first 8 units per the design/build agreement with Talent Services LLC, and the factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and its subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Investor Relations: SGBX@crescendo-ir.com
What agreement did Safe & Green Holdings Corp. (SGBX) enter into?
Safe & Green Holdings Corp. (SGBX) entered into a design/build agreement with Talent Services
What are the units designed to meet?
The units are designed to meet the Department of Energy's Net-Zero Energy Ready Requirements.
How many units are expected to be delivered in North Carolina by the fourth quarter of 2024?
Eight units are expected to be delivered in North Carolina by the fourth quarter of 2024.
What is the total number of units anticipated to be constructed and delivered over the next seven years?
The project has the potential for a total of approximately 600 units to be constructed and delivered over the next seven years.
What is the focus of the project in terms of sustainability?
The project focuses on sustainable modular construction and the implementation of Net Zero Energy.
