Leidos (NYSE: LDOS) said Jan. 6 that the Plainfield Renewable Energy project in Plainfield, Conn., reached substantial completion on Dec. 21, 2013, under the terms of the facility’s engineer, procure, and construct (EPC) contract.
The facility has met all conditions to qualify as an ISO New England (ISO-NE) market asset and achieved commercial operation under the terms of its interconnect agreement with ISO-NE. The commercially operational plant has also met the eligibility requirements under the American Recovery and Reinvestment Act for a 1603 cash grant, Leidos added.
As one of the only Class 1 renewable biomass plants in the state, the facility uses a variety of fuel sources, such as wood from construction and demolition debris, recycled wood pallets and land clearing materials. Connecticut Light & Power will purchase 80% of the power from the plant based on a 15-year off-take agreement, based on the plant’s status as a renewable power source.
Leidos said it will operate the plant and commence marketing efforts to sell the facility to renewable power plant investors in an effort to maximize the value of the investment for shareholders.
“The Plainfield Renewable Energy project is a unique power plant that creates a beneficial reuse for construction debris by turning it into energy. We’re excited to have this important facility up and running to deliver renewable energy to the residents of Connecticut and New England for years to come,” said John Jumper, Leidos chairman and chief executive officer.
The Federal Energy Regulatory Commission on Nov. 22, 2013, approved a change in ownership where Leidos Renewable Energy LLC would buy this 37.5-MW plant in Plainfield, Conn. Leidos had announced on Oct. 15, 2013, that it had reached an agreement on the terms to assume ownership of this plant. Acting in its capacity as a secured lender, Leidos said that it has pursued a consensual foreclosure to assume ownership of the project company upon receipt of all necessary governmental approvals expected later this year.
Leidos is a science and technology solutions leader working to address some of the world’s toughest challenges in national security, health, and engineering. Leidos is headquartered in Reston, Va. and had approximately $6bn in revenues for fiscal year 2013, on a pro forma basis, following the spin-off of the company’s technical, engineering and enterprise IT business on Sept. 27, 2013.