McCormick & Company Inc. (MKC) with the help of Constellation Energy (CEG), got its second solar installation of 1.8-megawatt constructed at its 363,000-square-foot distribution center in Belcamp, MD.
This is one of the largest rooftop installations in Maryland. The installation raises the company’s total amount of hosted solar power across the state to nearly 3 megawatts.
Belcamp solar power system after the completion of the project is expected to generate 2.3 million kilowatt-hours of electricity annually with the help of photovoltaic solar panels. This will eventually help reduce Belcamp’s annual electricity consumption by approximately 75%.
According to U.S. Environmental Protection Agency data, 2.3 million kilowatt-hours of solar power would help lower carbon dioxide emission from non-renewable sources by 1,600 metric tons, which is equivalent to the emission from 300 passenger vehicles annually. The project will also create a number of new green jobs, requiring approximately 17,000 man-hours during construction.
Baltimore based Constellation Energy is a leading competitive supplier of power, natural gas and energy products, and services for homes and businesses across United States. It owns a diversified fleet of generating units, totaling to approximately 12,000 megawatts of generating capacity and is a leading advocate for clean, environment-friendly energy sources such as solar power and nuclear energy.
This construction comes as an effort to make the sustainability project undertaken by the company a success. McCormick is well known for its commitment towards maintaining a clean en.
Management at McCormick elucidated that as it owns an agro-based business, it remains mindful of the environment and takes measures to preserve and protect natural resources.
In February 2009, Constellation Energy installed a total of 2,100 solar panels and 92,000 square feet of photovoltaic materials for the McCormick on the roof of its Hunt Valley Distribution Center and the McCormick Spice Mill.
The system reduced Green House Gas (‘GHG’) emissions by a proportion that is generally produced by about 150 vehicles annually.
Constellation Energy and McCormick entered into a deal whereby the Energy giant will finance, design and construct the solar power installation project at McCormick distribution centers, and then maintain the solar power system for a period of 20 years.
However, McCormick has to purchase the energy produced by the solar installations made at its facilities; but Constellation Energy expects McCormick will be able to save an estimated $3.4 million in electricity costs over the term of the agreement even after the purchase.
We are well aware of McCormick’s significant presence in the international market and its multiple acquisitions that gives it further strength. However, the highly competitive market and tough competitors like Kraft Foods Inc. (KFT) and Unilever Plc. (UL) leaves McCormicka little perplexed.
McCormick currently holds a Zacks #3 Rank which implies a short-term Hold rating.
