NORESCO Awarded $44.3 Million Navy Energy Contract Weeks After Sale to LS Power Unit

The Westborough, Massachusetts, energy services firm will upgrade energy systems at Naval Base Ventura County, California, under a firm-fixed-price task order set to finish by September 2028.

First Published: July 31, 2026, 1:24 PM ET

WESTBOROUGH, MASSACHUSETTS — NORESCO LLC, a Westborough, Massachusetts, energy services firm with more than four decades in the business, won a $44.3 million Navy task order to cut energy use at a California base, as announced on war.gov.

The firm-fixed-price energy savings performance contract funds energy improvements at Naval Base Ventura County, California, and draws on a previously awarded Department of Energy indefinite-delivery, indefinite-quantity contract. Work will span Port Hueneme, Point Mugu, and San Nicolas Island, with completion expected by September 2028. The award followed a competitive process that drew 15 offers, according to war.gov.

“For more than 40 years, NORESCO has been a trusted leader in energy efficiency, sustainability, and infrastructure solutions,” the company said on its website, according to noresco.com.

Energy savings performance contracts let federal agencies fund upgrades through the utility savings those upgrades generate, avoiding upfront appropriations. The Navy obligated no funds at the time of award, and financing will set the exact task-order amount when the deal closes, according to war.gov. That structure shifts financial risk onto the contractor, which guarantees the savings, while the Navy gains modernized systems without an immediate outlay.

The timing puts a fresh owner behind the work. Carrier Global Corp., the Florida-based climate and HVAC maker, agreed on May 18 to sell NORESCO to OPTERRA Energy Services, a subsidiary of New York-based LS Power, according to pulse2.com. Carrier framed the divestiture as part of a push to simplify its portfolio and focus on data-center cooling and building management. “The sale of NORESCO represents Carrier’s continued commitment to portfolio simplification,” David Gitlin, chairman and chief executive officer of Carrier, said in a statement, according to pulse2.com.

Carrier bought NORESCO in 2008 and is now shedding it after also selling heating equipment maker Riello to Italy’s Ariston Group for $440 million on July 1, according to Google. The NORESCO stock sale carried no disclosed financial terms and was expected to close shortly, according to Google.

The award marks the first federal contract of 2026 for NORESCO and lifts its year-to-date total to $44.3 million. It ranks as the 44th Defense Department contract awarded in Massachusetts this year. The figure trails the company’s record award of $169.3 million and sits inside the Navy’s 2026 range, which runs from a low near $9 million to a high of $8 billion.

Work of this kind is routine for the company across the country. NORESCO secured a subcontract tied to a $104 million upgrade to a Federal Bureau of Investigation complex in March and a $252 million contract to modernize industrial infrastructure at a U.S. Army depot in July 2025, according to Google. The firm reports guaranteed savings of $5 billion and work across more than 10,000 facilities, according to noresco.com.

The Naval Facilities Engineering and Expeditionary Warfare Center in Port Hueneme, California, serves as the contracting activity and will oversee the task order. A date for the next milestone decision has not been announced beyond the September 2028 completion target.

Port Hueneme has anchored Navy logistics before, as happened before. The base opened as a deep-water port in 1942 and became the West Coast home of the Seabees, the Navy’s construction battalions, during World War II, according to noresco.com. Those crews built airstrips and bases across the Pacific under fire, and the port that trained them now hosts the energy upgrades meant to keep the same installations running for decades to come.

This contract represents the 1st contract awarded to NORESCO LLC, in 2026, bringing the company’s total contract value for the year to $44,318,672. It is also the 44th Department of Defense contract awarded in Massachusetts during 2026. While this is not the largest contract ever awarded to NORESCO LLC, whose record stands at $169,331,394, it is notable within the Navy portfolio. Specifically, it falls between the 2026 Navy portfolio’s year-to-date minimum of $9,046,496 and maximum of $8,000,000,000. Overall, this award was announced among 11 Department of Defense contracts issued nationwide on July 31, 2026.