Argan Inc. (NYSE: AGX) announced Dec. 19 that Panda Power Funds has completed the acquisition and successful financing of Moxie Patriot LLC.
Gemma Power Inc. (GPI), a wholly-owned subsidiary of Argan, has been funding Moxie Patriot during the development process for an 829-MW natural gas-fired plant in Lycoming County, Pa.
As a result of the sale, GPI is receiving development success fees and repayment of the working capital advances plus accrued interest from the proceeds. Gemma Power Systems LLC (GPS), another subsidiary of Argan, has been awarded the EPC agreement to design and build the power plant. The EPC agreement has been assigned to Gemma-Lane Patriot Partners (GLPP), a joint venture between Gemma Power Systems and The Lane Construction Corp. for the construction of the plant. GPS holds a 75% interest in GLPP.
This is the second major power plant project development funding provided by GPI. GPI advanced working capital to the Panda Liberty LLC 829-MW gas-fired plant located in Bradford County, Pa. Liberty was also acquired by Panda Power Funds earlier this year. An additional joint venture between Gemma Power Systems and Lane Construction was awarded the EPC agreement for that project. Full notice-to-proceed was received on Aug. 21, 2013. Construction of the plant will be completed in early 2016.
Rainer Bosselmann, Chairman and Chief Executive Officer, stated: “We are happy to once again join forces with Panda Power Funds in constructing a second large scale, state of the art, power facility.”
Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiaries. These energy plants include traditional natural gas-fired power plants as well as alternative energy facilities including biodiesel, ethanol and renewable energy sources such as wind power.