Gemma Power Systems, a wholly-owned subsidiary of Argan has signed a consent and intercreditor agreement for the construction and design of a 825MW gas-fired plant in Pennsylvania, US.
The company has been providing funds to Moxie Liberty to develop the gas-fired plant and has advanced about $3.6m in the working capital for the project.
Moxie, on 28 March 2013, entered into a membership interests purchase agreement with a third party investor who will provide advances on certain preconstruction costs to be incurred on the plant.
The third party investor will acquire Moxie, once it secures permanent financing for the project.
If the third party investor completes the purchase of Moxie, Gemma Power will build and design the power plant under an engineering, procurement and construction (EPC) agreement.
Gemma Power will receive development success fees and repayment of the working capital advances, plus accrued interest from the proceeds of the sale of Moxie.
US-based Gemma Power is the EPC providing company for the energy industry.