American DG Energy has reached an agreement to provide 415 tons of chilled water and cooling to four buildings at Stevens Institute of Technology in Hoboken, NJ.
The on-site utility says the revenue value of the agreement is $10,100,000 over the 25-year term.
American DG Energy will own and operate the efficient cooling systems, which will be located at the McLean Building, Schaeffer Gym, Stevens Building and Central Building, and will bring the total number of energy systems installed at Stevens to 14.
American DG Energy will then sell the energy produced from the onsite chillers to Stevens as an alternative to the outright sale of energy equipment. Stevens — and all of American DG Energy’s on-site utility customers — only pay for the energy produced by the systems, and receive a guaranteed discount rate on the price of the energy. All system capital, installation and operating expenses are paid by American DG Energy.
According to Barry Sanders, president and chief operating officer of American DG Energy, this newest contract puts the company’s revenue potential at $270 million over the term of the agreements.
Last month, American DG Energy announced an agreement to provide on-site energy to Wolman Hall student housing at The Johns Hopkins University in Baltimore, Md. Under the terms of the agreement, Johns Hopkins will receive a portion of its energy from a 75 kW combined heat and power system (CHP), which will be owned and operated by American DG Energy.
American DG Energy also owns and operates a 100kW CHP system that produces electricity, space heat and hot water for the DoubleTree Hotel in Tarrytown, NY.