The energy business arm of
ABM Industries Inc.
) has recently started construction on a 2 MW solar array on
Cornell University's campus in Ithaca, NY. The investment seems
to have impressed investors as share prices have marginally
increased to $28.78 as on Mar 20.
The project will be financed and owned by ABM's joint venture
partner Building Energy in partnership with developer Distributed
Sun, LLC. ABM will provide Engineering, Procurement and
Construction (EPC) and Operations & Maintenance (O&M)
services for this project.
The deal is Ivy League university's first large solar endeavor.
ABM is focusing on developing clean renewable energy project,
minimize client's utility costs and increase the overall power
reliability. The solar array is expected to save 730 metric tons
of carbon dioxide annually. Per the agreement, the 6,500+ panel
Lansing solar array will provide low-cost energy rates to Cornell
University over a period of 30 years and is line with its carbon
reduction goals. The system is expected to generate over 2.2
million kilowatt hours (kWh) annually. A portion of the plant
will also be used by students to view solar monitoring software
for 10 panels.
With about $13 billion worth of solar project construction in
2013, ABM envisions a tremendous growth opportunity in the solar
market. The market is expected to grow at a compounded annual
growth rate (CAGR) of 28% by the end of 2016 and ABM is well
positioned to take advantage of this growing market to augment
ABM provides engineering, janitorial, parking, and security
services to commercial, industrial, institutional, and retail
facilities. The company has developed a platform to deliver an
end-to-end service model to its clients by realigning operational
structure to an on-site, mobile and on-demand market-based
The company further expects to extend its global footprint as
well as strengthen its position in the existing markets through
inorganic and organic growth across industry verticals.
ABM currently holds a Zacks Rank #2 (Buy). Other stocks in the
industry that look promising include
Huron Consulting Group Inc.
), each carrying a Zacks Rank #2 (Buy).
ABM INDUSTRIES (ABM): Free Stock Analysis
ACCENTURE PLC (ACN): Free Stock Analysis
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