SMEPA intends to purchase 103.5MW of the 582MW power plant slated to begin commercial operation in 2014.
The transaction will become final after the two organizations complete an ownership and operating agreement over the course of the next year. SMEPA must also secure financing for its share of the project and receive approval from its primary lender, the Rural Utilities Service.
The power plant will convert Mississippi lignite into synthetic gas to power a combined-cycle generating unit. The plant’s technology is expected to capture 65% or more of carbon dioxide emissions.
SMEPA said it signed a letter of intent in September to explore the acquisition of an interest in the project, and subsequent investigation and due diligence indicated potential long term savings for SMEPA by owning a portion of the facility.
