FRAMINGHAM, Mass. - Ameresco, Inc. (NYSE: NYSE:AMRC), a cleantech integrator, and Envision Energy, a renewable energy solutions provider, have been selected by Atlantic Green to construct a significant battery energy storage system (BESS) in the United Kingdom. The project, named the Cellarhead BESS, will have a capacity of 300 megawatts (MW) and an energy storage potential of 624 megawatt hours (MWh).
The strategic initiative will be connected to the National Grid (LON:NG)'s Cellarhead sub-station, aiming to bolster the UK's energy security and reliability. Construction is set to begin in the first half of 2024, with the goal of connecting to the electricity grid by mid-2026.
This project is a key milestone in Atlantic Green's mission to develop approximately 2 gigawatts (GW) of battery energy storage, which is integral to the UK's transition to clean energy. The Cellarhead BESS project is expected to support the country's objective to achieve net zero emissions by reducing dependence on fossil fuels and mitigating greenhouse gas emissions.
Ameresco has entered into an Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) contract for the project, which includes a full wrap price of approximately $249 million (196.5 million GBP). Envision Energy will supply the BESS and associated services, along with equipment warranties.
Nick Bradford, Managing Director of Atlantic Green, expressed enthusiasm about the development of battery energy storage as a vital step towards the UK's net-zero carbon goals. Mark Apsey, MBE, Senior Vice President of UK Operations at Ameresco, highlighted the importance of energy storage technology in achieving the UK's net zero targets and commended Atlantic Green's leadership and track record in project development.
Kane Xu, Global VP of Envision Energy, emphasized the importance of advanced battery solutions in enhancing energy security and facilitating the transition to renewable energy sources.
The BESS project, once completed, will be owned and operated by Atlantic Green as an energy storage asset. This collaboration is set to demonstrate the capabilities of battery storage technology in sustainable energy systems and contribute to the UK's clean energy landscape.
This article is based on a press release statement.
InvestingPro Insights
Ameresco, Inc. (NYSE: AMRC) is taking significant strides in the renewable energy sector with the recent announcement of their partnership on the Cellarhead BESS project in the UK. As investors consider the implications of this strategic initiative, it's essential to understand Ameresco's financial health and market performance.
InvestingPro data indicates that Ameresco has a market capitalization of approximately $1.65 billion, with a P/E ratio of 27.95 reflecting investor expectations of future earnings. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 26.63, suggesting a slight improvement in valuation over time. Despite a challenging revenue growth of -13.54% over the last twelve months as of Q1 2024, the company has experienced a quarterly revenue growth of 10.1%, indicating a potential turnaround in its financial performance.
Two critical InvestingPro Tips for Ameresco are its significant debt burden and the fact that it's quickly burning through cash. These factors could impact the company's ability to finance its operations and investments effectively. Moreover, with 5 analysts having revised their earnings downwards for the upcoming period, investors should be cautious.
For those seeking more in-depth analysis, there are additional tips available on InvestingPro. For example, Ameresco's stock price movements have been quite volatile, which could be a concern for risk-averse investors. Still, the company has demonstrated strong returns over various periods, including the last week, month, three months, five years, and even the last decade. Ameresco does not pay a dividend, which might be a consideration for income-focused investors.
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