Argan Inc. has announced that its wholly owned subsidiary, Gemma Power Systems (GPS), has signed an engineer-procure-construct (EPC) contract with East Texas Electric Cooperative Inc. (ETEC) for an USD 165 million contract to design and build a 49.9MW, biomass-fired power plant near Woodville, Texas.
The Rural Utilities Service (RUS) must issue its approval of the contract and issue its Finding of No Significant Impact (FONSI) for the project prior to full effectiveness of the contract. GPS has received a limited release to start critical planning and early engineering activities with a full release expected no later than Spring 2012. The project is estimated to be completed in December 2014.