Leidos to assume ownership of Connecticut biomass plant
Leidos Holdings Inc. has announced plans to assume ownership of the 37.5 megawatt (MW) Plainfield Renewable Energy biomass project, which is under development in Plainfield, Conn. The project, first announced in January 2012, was originally owned by a subsidiary of Enova Energy Group.
The plant is being constructed by Leidos Constructors. According to information released by Leidos, acting in its capacity as a secured lender, the company has pursued a consensual foreclosure to assume ownership of the project. A company spokesperson confirmed the announcement to Biomass Magazine, but was unable to offer any additional details on the foreclosure or transaction. However, a statement issued by Leidos specifies the company is expected to assume ownership before the end of the year, upon receipt of all necessary government approvals.
“Due to recent events, Leidos has taken this action to ensure the project company continues to meet its commitments and to maximize the long term value of the facility,” said the company in a statement.
The project is on schedule to be complete by the end of the year. Connecticut Light & Power will purchase electricity from the facility under a 15-year offtake agreement.
"We've reached this agreement in an effort to maximize the value of our investment for our shareholders," said Leidos chairman and CEO John Jumper. "We believe the facility is an attractive asset for potential buyers, as it is one of the only Class 1 biomass plants in the state of Connecticut.”
Development of the Plainfield Renewable Energy biomass project was originally announced on Jan. 9, 2012 by Science Applications International Corp. and the Carlyle Energy Mezzanine Opportunities Group. The two entities announced they would provide financing for construction of the $225 million project. In addition SAIC indicated it would provide engineering, procurement and construction services. SAIC recently changed its name to Leidos Holdings Inc.