Building products company USG (NYSE:USG) is partnering with green energy developer Green Light Plaster City Solar 1 (GLPCS1) on a solar energy power purchase and sale agreement for one of its California manufacturing plants.
Under the terms of the agreement, GLPCS1 will work with local engineering firm ZGlobal to install a solar facility on eight acres of USG's manufacturing plant in Plaster City. Installation began last month and is set to wrap up in December.
The agreement is the latest effort by Green Light and ZGlobal to increase renewable energy in California.
Prior to the agreement, the Plaster City plant's energy was provided by the Imperial Irrigation District, which is expected to increase rates at an unknown rate, according to the USG press release. The project with GLPSCS1, meanwhile, is expected to save USG more than $1 million over its predicted 20-year lifespan, due to lowered electricity costs.
USG is "always looking for opportunities for our plants to use solar energy," said Al Zucco, the company's senior director of energy and sustainability, "and it made a lot of sense to move forward with this renewable energy investment at our manufacturing plant in Plaster City. ... This is an exciting project that demonstrates USG's environmental stewardship and commitment to maintain environmentally friendly operations."
Since the start of 2013, USG has seen its stock price move from $28.07 per share to $28.17, a 0.3% increase.
Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.