The Virginia financer of a 37.5 megawatt Plainfield biomass power plant has agreed to buy the facility out of foreclosure, after the original New Jersey-based owner failed to finish construction.
Leidos Holdings of Virginia announced its agreement with New Jersey-based Enova Energy Group for a consensual foreclosure where Leidos will assume ownership of the plant by the end of the year, pending government approvals.
Leidos was a secure lender on the project along with Science Applications Corp. and Carlyle Energy Mezzanine Opportunities Group, providing the financing necessary for the $225 million construction.
In its announcement, Leidos did not specify what the financial trouble was that is leading to its taking over ownership of the plant, only saying recent events forced the company to act in order for the project to meet its commitments and provide long-term value to the facility.
Once construction is complete, Connecticut Light & Power will buy electricity from the Plainfield plant, starting under a 15-year contract. The biomass will allow CL&P to meet the renewable energy goals set by the state.
Leidos intends to complete construction of the facility as originally scheduled by the end of the year, qualifying for the federal tax production credits.
