Footprint Power has entered into an agreement with Dominion Energy to acquire its Salem Harbor Power Station and property located in Salem, Massachusetts, US, for an undisclosed sum.
Footpring Power intends to build a new natural gas-fired plant on the 63-acre site, following approval from the Federal Energy Regulatory Commission, which is expected by the end of July.
If the proposal is approved, the new plant will replace the existing coal and oil-fired facility, which is scheduled to be shut down in June 2014.
Dominion Energy spokesman Jim Norvelle was quoted by boston.com as saying that company is pleased to find a buyer willing to keep the plant operating in some form.
"We believe the transaction is a positive outcome for the plant employees, city of Salem, Footprint, and Dominion," said Norvelle.
Footprint has sought a permit from ISO New England, the region's grid operator, to start providing electricity by 2016.
Footprint Power CEO ,Peter Furniss, said: "Salem has long been our company's first choice for an initial project. It is a perfect opportunity for us to work with a dedicated and professional workforce, an engaged community and the committed elected officials who serve it to add responsible and respectful development to the economic base in order to further strengthen this vibrant city."