Leidos: Sale of Plainfield biomass plant to be complete soon

By Erin Voegele | May 19, 2015

Leidos Holdings Inc. has released first quarter financial results, announcing the sale of its 37.5 MW Plainfield Renewable Energy plant to Greenleaf Power is progressing as expected. During an investor call, Roger Krone, CEO of Leidos, said the transaction is expected to close in the coming months.

According to Mark Sopp, chief financial officer and executive vice president of Leidos, the quarterly financials include a previously reported non-cash impairment charge of $40 million related to the biomass power plant, which is located in Plainfield, Connecticut. He also noted the facility generated an operating loss of $6.4 million during the fourth quarter. Overall, Leidos reported quarterly revenues of $1.2 billion, down from $1.3 billion during the same period of the prior year. Operating income was $38 million, down from $87 million during the same quarter of 2014. 

Greenleaf announced plans to acquire the Plainfield facility in March. “The acquisition of Plainfield Renewable Energy will mark Greenleaf Power’s sixth acquisition in North America and second on the east coast," said Hugh Smith, president of Greenleaf Power, in March.  “Plainfield solidifies Greenleaf Power’s presence throughout North America as the leading owner-operator of biomass power facilities.”

Leidos has owned and operated the facility since it became operational. The company first announced plans to assume ownership of the facility in late 2013. The plant, originally owned by a subsidiary of Enova Energy Group, was constructed by Leidos Constructors. According to information released by Leidos in 2013, the company, acting in its capacity as a secured lender, pursued a consensual foreclosure to assume ownership of the project. Leidos announced the plant became commercially operational in January 2014.