Deal signed to potentially sell planned natural gas-fired power plant

Gemma Power Systems, a unit of Argan Inc. (NYSE: AGX), signed a consent and intercreditor agreement for a planned 820 MW natural gas-fired power plant in Pennsylvania.

GPS has advanced about $3.7 million for the development of Moxie Patriot plant project. On May 3, Moxie Patriot LLC signed a membership interests purchase agreement with an unnamed investor who will provide advances of certain preconstruction costs.

The purchase of Moxie Patriot is contingent upon the unnamed investor securing financing for the project. Should the investor begin the purchase, Gemma Power will build and design the plant under an engineering, procurement and construction agreement. Gemma would receive deployment success fees and repayment of working capital advances plus accrued interest from the proceeds of the sale of the plant.

This story was originally published by Power Engineering online. It is republished with permission.

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