Property, plant and equipment, net

12 Months Ended

Dec. 31, 2020

Property, plant and equipment, net

Property, plant and equipment, net

8. Property, plant and equipment, net

Property, plant and equipment, net consists of the following:

	December 31,		December 31,		Depreciable
	2020		2019		Lives
Land	$	6.4	$	6.4
Office equipment, machinery and other		6.7		6.5	3	-	10	years
Leasehold improvements		2.1		2.1	7	-	15	years
Asset retirement obligation		23.6		23.4	1	-	43	years
Plant in service		885.1		848.1	1	-	45	years
Construction in progress		0.8		7.2
		924.7		893.7
Less accumulated depreciation		(432.9)		(391.6)
Total property, plant and equipment, net	$	491.8	$	502.1

Depreciation expense of $36.8 million and $37.6 million was recorded for the years ended December 31, 2020 and 2019, respectively.

No long-lived asset impairments to property, plant and equipment were recorded in the year ended December 31, 2020. As described below, we recorded $4.0 million of long-lived asset impairments to property, plant and equipment in the years ended December 31, 2019, respectively, with a corresponding charge to Impairment in the statement of operations.

2019 – Event-driven test performed in fourth quarter

Calstock – Long-lived assets

Calstock previously operated under a PPA that expired in June 2020. We performed the test as of December 31, 2019, six months prior to the contract expiration date. Calstock’s asset group for testing of long-lived assets totaled $7.8 million consisting of $2.3 million of net working capital, $4.7 million property, plant and equipment (“PPE”), net and a

$0.8 million intangible PPA asset.

Because of the uncertainty of our ability to recontract the project, fair value of Calstock was determined based solely on the cash flows remaining under the current contract. If our efforts to recontract are unsuccessful, the project will be taken out of service but not decommissioned. Upon testing Calstock for long-lived asset impairment, the carrying value of the asset group exceeded the estimated cash flows. Accordingly, we recorded a $4.7 million long-lived asset impairment in the year ended December 31, 2019, which is the difference between the fair value and carrying value of the reporting unit’s asset group, $0.7 million of the impairment related to intangible PPA assets and $4.0 million of the impairment related to property, plant and equipment. We also recorded impairment losses of $1.1 million related to spare parts inventory at Calstock. The Calstock biomass plant is a component of our Solid Fuel segment.