Enron Energy Services (EES) is on the move again, signing itssecond energy management contract in as many weeks, this time withpharmaceutical company Eli Lilly and Co. The $1.3 billion agreementwill run for the next 15 years.
Under the agreement, EES will manage and supply the electricityand natural gas for Lilly’s facilities in Indiana. The contractalso includes operations and maintenance on energy assets andrelated energy infrastructure upgrades that will increase energyefficiency for Eli Lilly.
“Lilly continues to look for ways to operate more effectivelyand efficiently,” said Frank Deane, vice president of biochemicalmanufacturing at Eli Lilly. “Outsourcing our energy purchasing andoperations and maintenance of energy related equipment makes sensein terms of future savings and Lilly’s overall strategy to focus onour core business-pharmaceutical research and development. Thisstrategy also allows us to retain all the affected employees andoffer them reassignments in areas closer to our core business.”
EES recently reported it had entered into a multi-million dollaragreement to manage The Quaker Oats Co.’s energy needs for 10 years(see NGI, Feb. 26).
“Our agreement with Lilly gives the company immediateintegration into Enron’s extensive buying power and expertise inenergy management services, while enabling them to focus on theircore competencies,” said Jeremy Blachman, COO, global nationaloutsourcing and commodity for EES. “We look forward to being a partof Lilly’s continued success.”
EES said that the contracts it has signed over the last twoyears represents a reduction of about 8 billion kWh of electricityand 18 trillion Btu of natural gas consumption between 2000 and2012. Alex Steis
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