Army announces conditional lease solicitation awards for commercial power generation, securing installation power resilience

WASHINGTON - In a major step toward strengthening national defense and Army energy resilience, the U.S. Army announced today the conditional award of long-term leases to three companies to design, finance, build, and operate commercial power generation on Army installations.

By leveraging underutilized land on military installations, the Army is cooperating with industry leaders to establish power generation and energy resilience for its bases.

1. Aberdeen Proving Ground, Maryland and Picatinny Arsenal, New Jersey: Ameresco
2. Fort Detrick, Maryland, Letterkenny Army Depot, Pennsylvania, and West Point, New York: Indelible-Bloom
3. Tobyhanna Army Depot, Pennsylvania: Frontier Power USA

"The ability to provide backup power to our installations is critical to ensuring mission success and resiliency for our installations," said Dr. Jeff Waksman, Principal Deputy Assistant Secretary of the Army for Installations, Energy and Environment. "These awards are translating national energy priorities into action - promoting American energy dominance."

The projects include a potential mix of battery energy storage, natural gas and nuclear electric generation capabilities. These market-based resources will provide capacity to the grid and ready, on-site capabilities to their host installations.

The announcement is part of the Army's Strategic Capital Initiatives (SCI), a landmark effort to engage with the private sector to accelerate enterprise-wide modernization.

Formal lease agreements with these companies are in the initial stages. Development is slated to begin as early as 2027, with an Initial Operating Capability targeted by, or ahead, of 2030.

A Proven Model and Value Returned to the Army

These conditional awards are made possible through an Enhanced Use Lease (EUL), a statutory authority under 10 U.S.C. § 2667. An EUL is a real estate agreement that allows the Army to lease non-excess, underutilized land to private-sector partners.

Importantly, an EUL is a leasehold agreement, not a land sale; the United States retains title to the leased property at all times. Under this structure, the Army acts purely as a landlord. The private party lessees bear all costs to finance, design, build, operate, secure, and decommission the facility.

In return for the use of the land, the lessee pays rent at or above fair market value. The Army prefers to receive this rent as "in-kind" consideration. This means that instead of cash, the lessee directly funds and executes infrastructure improvements on the host installation. This directly benefits Soldiers, families, and operations by upgrading utilities, enhancing infrastructure, and modernizing mission capabilities. Finally, a mandatory decommissioning bond ensures that funds are secured well in advance to return the land to its original condition when the lease ends.

American Businesses

To mitigate supply chain risks and prevent undue foreign influence, eligibility for these projects was strictly limited to entities organized under U.S. law, featuring majority domestic ownership and control, and maintaining a U.S. place of business. Furthermore, any in-kind infrastructure improvements delivered to the Army will adhere to Davis-Bacon prevailing wages and Buy American Act requirements.

Environmental & Mission Compatibility First

The Army remains committed to smart stewardship of its real property and the surrounding communities. Offerors are required to engage state and local authorities, assess local impact, and propose comprehensive mitigation strategies.

No construction will begin until rigorous environmental and regulatory reviews-including the National Environmental Policy Act (NEPA), Clean Air and Water Acts, and all required federal, state, and local permits-are fully complete. The selected parcels were specifically chosen to ensure compatibility with the ongoing missions of each host installation.

The conditional lease awards announced today follow other recent conditional EUL awards for a munitions facility at Pine Bluff Arsenal, and mineral processing facilities at multiple installations.

For more information on the Army's Strategic Capital Initiatives, please visit www.army.mil/sci or contact the Army Communication and Outreach Office at Media Query Form.

Insights From Awardees:

• "Ameresco is honored to be among the companies selected to support the U.S. Army's Strategic Capital Initiatives and advance energy resilience across critical military installations. At Aberdeen Proving Ground in Maryland and Picatinny Arsenal in New Jersey, we look forward to deploying resilient, on-site energy infrastructure that strengthens mission readiness and enhances energy security. These projects represent a significant opportunity to advance both traditional firm power generation technologies and innovative nuclear solutions, helping establish a new generation of resilient, secure energy infrastructure for defense applications." ~ Nicole Bulgarino, Co-President of Ameresco.
• "Frontier Power USA (FPUSA) is honored to support the U.S. Army and its mission. We are proud to bring private capital and American innovation to Army installations, combining American-made battery energy storage with U.S.-compliant power generation to deliver resilient, mission-ready power at scale. We look forward to the opportunity to strengthen the Army's energy security and America's domestic industrial base." ~ Jay Bellows, CEO, FPUSA
• "Indelible-Bloom is honored to support the legacy of service at Fort Detrick, Letterkenny Army Depot, and West Point, spanning medical advances, combat readiness, and generations of Army leadership. Dependable energy helps Soldiers and civilian personnel carry out their duties and sustains the communities their families call home. Our partnership with Bloom Energy draws on its experience providing reliable power to universities, research laboratories, hospitals, and other critical facilities. We are focused on bringing together the private investment and execution needed to turn the Army's vision into lasting results." ~ Michael David White II, Chief Business Development Officer, Indelible-Bloom