Blue Earth Inc., a renewable energy and energy efficiency services company, announced today that its wholly owned subsidiary, Xnergy Inc., entered into a binding Memorandum of Understanding (MOU) to construct six solar PV projects in the State of New Jersey. The engineering, procurement and construction (EPC) revenue for the company is approximately $20 million.
Under the binding MOU, Xnergy will provide EPC services for the approximate 12.6 MW of solar PV projects. The EPC work is expected to commence in the third quarter of 2013 and be completed during the first quarter of 2014.
“These six projects, combined with the previously announced 24 Hawaii solar PV projects (~$6 million) are expected to generate over $26 million in EPC revenues for BBLU over the next nine months,” stated Dr. Johnny Thomas, CEO of BBLU. “Management anticipates concluding negotiations for additional solar EPC contracts of similar size, and they are expected to begin construction during this fiscal year.”
In addition, BBLU expects to finish several Company owned solar PV projects and commence construction on other BBLU owned solar PV projects during this third quarter. It should be noted that a significant portion of the cash used for operations in the second quarter and the cash being used in the current quarter is for project development, as opposed to corporate expenses. These dollars are expected to be returned to treasury when projects are completed, through the sale of some projects or through a combination of tax equity investors and debt, which allows BBLU to retain ownership and make these projects part of our IPP (independent power producer) portfolio.
The cash position of BBLU was significantly improved during the quarter and debt was decreased, resulting in improved shareholder equity. BBLU’s improved cash position has enabled the seven large CHP projects to progress in a timely manner. Our goal is to quickly become a large IPP by retaining ownership of these projects, which will result in minimal EPC revenue recognition in the short term in order to maximize recurring revenues over the next 20 years through PPAs. Management expects the initial seven CHP projects to be completed during the mid part of 2014.
Revenues from the energy efficiency division of our business are expected to increase during the second half of 2013, as utilities begin to deploy funds from the new three-year funding cycle for utility rebate programs. The new three-year utility rebate programs have more dollars available for deployment than the preceding program cycle. Our e-commerce unit of the EE division is experiencing significant growth on a month over month basis and we expect this trend to continue.
— Solar Builder magazine
[source: http://www.solarbuildermag.com/news/xnergy-to-build-six-pv-projects-in-new-jersey/]
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