Ameresco, Inc. (NYSE:AMRC) Q4 2022 Earnings Call Transcript

Doran Hole: And I think the higher energy rates elsewhere in the country for purposes of off take contracts, et cetera, I do believe there’s a little bit of a lag there with respect to those kind of catching up with where the energy prices are going just given the long development cycle of some of the assets, but our expectation is the same, the same thing will happen there.

Operator: Thank you. One moment please for our next question. Next question will come from Ben Kallo of Baird. Your line is open.

Ben Kallo: Hey, guys. George then, will you gave the ideas for EBITDA next year, there was no IRA. So could you just talk about maybe what’s beneficial from IRA for next year versus what’s not good for next year EBITDA? And it’s a big question — sorry to interrupt, big question is, the ramp from this year to EBITDA to next year? And what are the drivers of that? If you could just name the biggest driver and the second biggest driver. Thank you.

George Sakellaris: We have not taken any potential impact from the IRA. It’s based again on the project. A good chunk of that will come from the project execution, but a substantial number will come from the assets we placed in operation. For example, I know we — the number of vessels we put in operation last year was in the number we contemplated, but 40 megawatts of asset will go in this first quarter, and that will help a lot. And then, of course, the RNG assets that they will go into operation by the end of the year and a couple of them, they come on early in 2024.So they will contribute as well. So — and then we have a couple of battery projects that we are working on. And then the other business, they can become a good contributor though. the other lines of business, and they will help as well. I don’t know if you want to add any more color, I don’t know, Mark.

Mark Chiplock: No, I think that pretty much says it. Thanks, George.

George Sakellaris: Yes.

Operator: Thank you. And that will be all the time we have for the Q&A session. This will also conclude today’s conference call. Thank you all for participating. You may now disconnect, and have a pleasant day.