Leidos to assume ownership of biomass power facility

Leidos Holdings, a science and technology company, is to assume ownership of a 37.5MW biomass-fuelled power plant currently being built in Plainfield, Connecticut by Leidos Constructors.

The new facility is scheduled to be completed by the end of this year. Upon entering operations the biopower plant will power the equivalent of 37,000 homes. Connecticut Light & Power has signed a 15-year power purchase agreement with Leidos to acquire power from the plant.

Leidos intends to complete the facility as originally scheduled, qualify for relevant tax benefits, operate the plant and commence marketing efforts to sell the facility to renewable power plant investors.

'We've reached this agreement in an effort to maximise the value of our investment for our shareholders,' says 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.'

Acting in its capacity as a secured lender, Leidos has pursued a consensual foreclosure to assume ownership of the project company upon receipt of all necessary governmental approvals expected later this year. Due to recent events, Leidos has taken this action to ensure the project company continues to meet its commitments and to maximise the long-term value of the facility.

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