SAIC Develops Award-Winning Renewable Energy Project

Unique Business Model

The Plainfield Renewable Energy (PRE) biomass plant is part of a project that sets a precedent for a unique business model at SAIC — providing the engineering, procurement, and construction (EPC) services renewable energy plants require, as well as the financing to get these types projects off the ground. Recently, Project Finance magazine named the project its "North American Mezzanine Deal of the Year 2011," and Energy Risk magazine named the project its "Deal of the Year."

"The Plainfield project is in line with SAIC's strategy to pursue commercial work in the energy, environment, and infrastructure markets," said JT Grumski, SAIC senior vice president and energy, environment, and infrastructure business unit general manager. "Now, in addition to providing high-quality independent engineering reports with due diligence for renewable projects, SAIC also helped secure the necessary financing for these investments."

A subsidiary of Enova Energy Group acquired the project rights and brought the project to SAIC because of our experience in bringing the right people, technologies and analytical frameworks together to craft innovative, yet defensible, solutions for businesses and their financial needs. SAIC collaborated with the Carlyle Group, a global alternative asset manager, to come up with the $225 million in funding.

Integrated Capabilities

The biomass plant, located on 27 acres, is fully certified as a renewable power source in the state of Connecticut and is expected to generate 37.5 megawatts of clean energy to power the equivalent of 37,000 homes. The plant will consume wood readily available from various sources such as construction and demolition (C&D) debris, recycled wood pallets, and land clearing materials. Connecticut Light & Power will purchase power from the plant based on a 15-year off-take agreement, using the plant's status as a renewable power source. SAIC will provide EPC services for the project under a fixed-price, date-certain contract.

"This project is great news for Plainfield, the region, and the state," said Paul Sweet, first selectman from the town of Plainfield. "It will create 400 jobs, bring more than $800,000 per year of tax revenues to the town, and increase the supply of electricity to the region. It represents exactly the type of renewable energy projects that the state should attract."

The project's largest single engineering challenge is its "fast track" nature — the plant is scheduled for completion in December 2013 — and the issuance of multiple engineering packages to keep pace with procurement and construction. Multiple structures and systems of the project have lent themselves to the division of engineering efforts by these same structures and systems. Lead engineers and engineering teams have been assigned to specific structures and systems for a multi-team approach and single point of responsibility. "The multi-team design approach coupled with ever vigilant construction coordination is providing the project an on-time method of delivery of engineering documentation," said Scott McKillip, SAIC program manager.

To learn more about the project, click here to view the complete Project Profile »