FRAMINGHAM, Mass. & KAHULUI, Hawaii - Ameresco, Inc. (NYSE: NYSE:AMRC), a cleantech integrator and renewable energy company, has been selected by Hawaiian Electric Company to construct a 40-megawatt renewable energy facility on Maui, named 'Ūkiu Energy. The project aims to enhance grid reliability and contribute to Hawaii's clean energy objectives, including the state's goal of 100% renewable electricity and carbon neutrality by 2045.
The 'Ūkiu Energy site is set to feature a biofuel-powered generator with six dual-fuel engines, providing firm renewable energy and a flexible capacity resource. The facility is designed to maintain power quality and grid stability, facilitating the integration of intermittent renewable resources. In case of power outages, the site will be capable of black start operations to assist in repowering the grid. The engines are expected to allow for a reduction in the idling of current fossil fuel generators, thereby supporting Hawaii's decarbonization efforts.
The 'Ūkiu Energy project is part of Hawaiian Electric Company's latest clean energy procurements aimed at reducing the state's reliance on imported oil for power generation. The contract, once finalized, will be reviewed and approved by the Public Utilities Commission (PUC). Ameresco will build, own, and operate the facility, which is designed to connect to Maui's electrical grid at the new Hawaiian Electric Waena substation.
This project marks Ameresco's fourth collaboration with Hawaiian Electric, following the Kūpono Solar project on Oahu, expected to come online in the second quarter of 2024, and two other projects, Pu`uloa Energy and Pu`uloa Solar, also on Oahu, with expected operational dates in 2027 and 2026 respectively. All projects are subject to PUC approval.
This information is based on a press release statement from Ameresco, Inc.
InvestingPro Insights
Ameresco, Inc. (NYSE: AMRC) has recently made headlines with its 'Ūkiu Energy project, yet investors are keen to understand the financial health and stock performance of the company. With a market capitalization of approximately $1.18 billion, Ameresco is a significant player in the renewable energy sector. The company's P/E ratio stands at 25.29, which is adjusted to 24.53 when looking at the last twelve months as of Q3 2023. Despite the company's initiatives, analysts have raised concerns reflected in the InvestingPro Tips, pointing out that Ameresco operates with a significant debt burden and is quickly burning through cash.
Moreover, the revenue growth has seen a notable decline, with a -33.72% change over the last twelve months as of Q3 2023. This downward trend is also seen on a quarterly basis, with a -24.05% change in FY2023 Q3. Such metrics could be indicative of the challenges Ameresco faces in a competitive and capital-intensive industry. Additionally, the stock price has experienced considerable volatility, with a one-year price total return of -56.37% as of the end of 2024, suggesting that investors may be reacting to both market conditions and company-specific factors.
For those interested in a deeper dive into Ameresco's financials and stock performance, there are an additional 13 InvestingPro Tips available at: https://www.investing.com/pro/AMRC. These tips provide valuable insights into aspects such as sales projections, net income expectations, and the company's valuation multiples. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.