FRAMINGHAM, Mass. & SACRAMENTO, Calif. - Ameresco, Inc. (NYSE: NYSE:AMRC), a cleantech integrator, has secured a contract close to $140 million to construct a biogas cogeneration plant at the EchoWater Resource Recovery Facility near Elk Grove, California. The project, expected to be completed by July 2026, will harness methane from sewage treatment to generate renewable electricity and heat.
The Sacramento Area Sewer District (SacSewer), which services over 1.6 million people, aims to lead in environmental stewardship with this initiative. The cogeneration plant will have a capacity of 13.4 megawatts and combine fuel cell and engine technology to ensure high efficiency and low emissions. The system is also designed to be expandable for future hydrogen production.
Christoph Dobson, SacSewer’s General Manager, emphasized the district's commitment to resource recovery and the project's alignment with their mission to protect public health and the environment. Michael Bakas, Executive Vice President of Ameresco, highlighted the project as a prime example of the circular economy, turning waste into a valuable resource and underscoring SacSewer's dedication to environmental and community wellbeing.
This development is part of Ameresco's broader portfolio of energy efficiency and renewable energy solutions. The company, founded in 2000, specializes in helping customers reduce costs and achieve decarbonization goals through a variety of sustainable energy projects.
While the announcement of the contract reflects positively on Ameresco's project backlog reported as of December 31, 2023, it does not necessarily indicate immediate revenue generation or trends in the company's total project backlog.
This information is based on a press release statement.
InvestingPro Insights
Ameresco, Inc. (NYSE: AMRC), while taking significant strides in the renewable energy sector with its latest biogas cogeneration plant project, presents a mixed financial outlook according to InvestingPro data. With a market capitalization of $1.18 billion and a P/E ratio that has adjusted to 17.61 from the last twelve months as of Q4 2023, Ameresco's valuation reflects a company with a stable earnings basis. However, it's important to note that the company operates with a significant debt burden and has been experiencing a rapid cash burn, as highlighted in two of the InvestingPro Tips.
Despite these challenges, Ameresco has maintained profitability over the last twelve months, and analysts predict the company will remain profitable this year. This is a critical factor for investors considering the company's long-term prospects, especially in the dynamic and capital-intensive field of renewable energy. Revenue growth has seen a quarterly surge of 33.05% in Q4 2023, indicating a potential turnaround or successful acquisition of new projects, such as the EchoWater Resource Recovery Facility.
Investors should be aware of the stock's recent volatility, with a significant drop of 9.96% in the past week alone. Nevertheless, the company's focus on innovative and sustainable projects like the one in Elk Grove, California, may offer long-term value. For those interested in a deeper analysis, there are over 10 additional InvestingPro Tips available, which could provide further insights into Ameresco's financial health and stock performance. Prospective subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, uncovering a more comprehensive investment picture.
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