Enron Signs Energy Service Deal with Eli Lilly
Enron Energy Services (EES) is on the move again, signing its
second energy management contract in as many weeks, this time with
pharmaceutical company Eli Lilly and Co. The $1.3 billion agreement
will run for the next 15 years.
Under the agreement, EES will manage and supply the electricity
and natural gas for Lilly's facilities in Indiana. The contract
also includes operations and maintenance on energy assets and
related energy infrastructure upgrades that will increase energy
efficiency for Eli Lilly.
"Lilly continues to look for ways to operate more effectively
and efficiently," said Frank Deane, vice president of biochemical
manufacturing at Eli Lilly. "Outsourcing our energy purchasing and
operations and maintenance of energy related equipment makes sense
in terms of future savings and Lilly's overall strategy to focus on
our core business-pharmaceutical research and development. This
strategy also allows us to retain all the affected employees and
offer them reassignments in areas closer to our core business."
EES recently reported it had entered into a multi-million dollar
agreement to manage The Quaker Oats Co.'s energy needs for 10 years
(see NGI, Feb. 26).
"Our agreement with Lilly gives the company immediate
integration into Enron's extensive buying power and expertise in
energy management services, while enabling them to focus on their
core competencies," said Jeremy Blachman, COO, global national
outsourcing and commodity for EES. "We look forward to being a part
of Lilly's continued success."
EES said that the contracts it has signed over the last two
years represents a reduction of about 8 billion kWh of electricity
and 18 trillion Btu of natural gas consumption between 2000 and
2012. Alex Steis
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