CRC Innovations and Ameresco: Revolutionizing Military Housing Energy Efficiency

CRC Innovations and Ameresco, Inc. (NYSE: AMRC) have recently announced a significant $200 million Energy Saving Performance Contract (ESPC) to modernize military housing at Fort Bragg, N.C.; Fort Meade, Md.; and Fort Sill, Okla. This project aims to enhance the quality of life for service members and their families while reducing energy consumption and promoting sustainability. The ESPC is expected to reduce annual electrical consumption by 40% and natural gas consumption by 50%, demonstrating the partners' commitment to energy efficiency and environmental responsibility.

The project involves replacing existing HVAC units with sustainable, renewable energy-sourced systems using ground source heat pumps manufactured in Oklahoma. This innovative approach to heating and cooling systems will not only improve comfort and energy efficiency but also contribute to the U.S. Army's long-term sustainability goals. By implementing these advanced technologies, CRC Innovations and Ameresco are helping the military achieve its target of reducing greenhouse gas emissions by 34% by 2025 compared to 2003 levels.

The ESPC is structured as a self-funding project, with the military paying down the financing annually with the utility savings generated by the project. This approach minimizes the risk of cost overruns or delays in energy savings, as Ameresco is responsible for delivering the promised energy savings. If the savings are not achieved, Ameresco may be required to reimburse the military for the shortfall. This mechanism incentivizes Ameresco to ensure the project is completed on time and within budget, aligning their interests with those of the military.

The successful execution of this project positions CRC Innovations and Ameresco favorably for future federal energy efficiency initiatives and military housing contracts. The project demonstrates the partners' capability to handle large-scale, multi-site federal projects, their expertise in implementing advanced energy-saving technologies, and their strong partnerships with key military infrastructure stakeholders. The projected 40% reduction in electrical consumption and 50% reduction in natural gas usage sets new benchmarks for military infrastructure efficiency, further enhancing the partners' positioning for future projects.



The project's focus on energy efficiency and resiliency aligns with federal sustainability goals, positioning CRC Innovations and Ameresco well for future federal energy efficiency initiatives. The Department of Defense manages approximately 200,000 military family housing units domestically, suggesting significant potential for similar projects. The successful execution of this contract could lead to additional opportunities within this vast market.

In conclusion, CRC Innovations and Ameresco's $200 million ESPC for military housing modernization represents a significant step towards promoting energy savings, capital improvements, and sustainability in the U.S. Army. The project's innovative approach to energy efficiency, self-funding structure, and potential for future growth position the partners favorably for continued success in the federal energy efficiency market.