Siemens AG (ADR) (OTCMKTS:SIEGY) has announced that it has received yet another Energy Savings Performance Contract (ESPC), this time from the US government. The contract concerns a US facility, outside North America. The agreement was signed between the Defense Logistics Agency- Energy and Siemens and is estimated to be worth $24.6 million. As per the details of the contract, Siemens would be required to install, operate and maintain a combined heat and power plant, at the US facility in Sembach, Germany.
Siemens believes that its initiatives would help the facility cut energy costs by almost 33%, while also reducing carbon emissions from the garrison, by 26%. The use of ESPCs by the government, allows them to use an alternative mechanism for financing the project. The contracts are said to ensure that no capital costs are incurred by the federal government. Furthermore, the company has also stated that the project would have the potential to provide 12-years of additional savings, after completion.
Barbara Humpton, the CEO of Siemens Government Technologies Inc, another division of the company, expressed pride at being chosen by the government for the project. She also commented on the use of ESPCs by the US military, to save taxpayer’s dollars. It should be noted here that the SGT would be collaborating with the German wing of the company, for the project.
This is latest in a series of projects, which Siemens has announced this month. Earlier the company had stated that it would be implementing Concert in Seattle. Concert is an integrated traffic management software. Siemens believes that through this software, the city can make its road networks and traffic management more efficient. The company also announced that Port Manatee, in Florida, was going to implement its integrated physical security solution. Siemens has stated that the system would help the port comply with federal requirements, in relation to Transportation Worker Identification Credentials.
Siemens AG (ADR) (OTCMKTS:SIEGY) had a trade volume of 69,514, during the May 27 session and gained 0.35%, before reaching a close at $109.83 per share.