Ameresco was selected for Aberdeen Proving Ground in Maryland and Picatinny Arsenal in New Jersey, while Indelible-Bloom received conditional awards for Fort Detrick in Maryland, Letterkenny Army Depot in Pennsylvania and West Point in New York. Frontier Power USA was selected for Tobyhanna Army Depot in Pennsylvania.
The projects could include a mix of battery energy storage, natural gas and nuclear electric generation capabilities. The Army said the facilities would provide capacity to the commercial power grid while maintaining ready, on-site capabilities for their host installations.
“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 awards are part of the Army’s Strategic Capital Initiatives, which are intended to accelerate enterprise-wide modernization through private-sector participation. Formal lease agreements remain in their initial stages, with development expected to begin as early as 2027 and Initial Operating Capability targeted by or before 2030.
The projects will use the Army’s Enhanced Use Lease authority under 10 U.S.C. § 2667, which allows non-excess, underutilized military land to be leased to private companies. The agreements are leases rather than land sales, meaning the United States retains title to the property throughout the arrangement.
Under the structure, the Army acts solely as landlord and does not bear the cost of financing, designing, constructing, operating, securing or decommissioning the power facilities. Lessees must pay rent at or above fair market value, with the Army preferring to receive the consideration through infrastructure improvements rather than cash.
Those in-kind payments can take the form of upgrades to utilities, infrastructure and mission capabilities at the host installations. A mandatory decommissioning bond must also be established in advance to ensure sufficient funds are available to restore the land to its original condition when the leases end.
Eligibility was limited to entities organized under U.S. law with majority domestic ownership and control and a U.S. place of business. The Army said the restrictions are intended to reduce supply-chain risks and prevent undue foreign influence, while any in-kind improvements must comply with Davis-Bacon prevailing wage requirements and the Buy American Act.
Prospective developers must also engage with state and local authorities, assess potential local impacts and propose mitigation measures. Construction cannot begin until environmental and regulatory reviews are complete, including requirements under the National Environmental Policy Act, Clean Air Act, Clean Water Act and applicable federal, state and local permitting processes.
The Army said the selected parcels were chosen to remain compatible with the existing missions of each installation. The conditional awards follow other recent Enhanced Use Lease decisions covering a munitions facility at Pine Bluff Arsenal and mineral-processing facilities at multiple Army installations.
