Covanta to Assume Operations of Two Florida Energy-from-Waste Facilities
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Covanta Holding Corporation (NYSE: CVA), a world leader in sustainable waste and energy solutions, announced its agreement to purchase a subsidiary of Babcock & Wilcox Enterprises, Inc. (NYSE: BW) with the operating and maintenance contracts for two Energy-from-Waste (EfW) facilities in Palm Beach County, Florida for $45 million. The facilities are owned by the Solid Waste Authority (SWA) of Palm Beach County and have a combined capacity of 1.7 million tons per year. The transaction is expected to close during the third quarter of 2018.
Stephen J. Jones, Covanta's President and CEO said: "We are pleased to partner with the SWA on these two projects as they are a progressive special district that is committed to sustainable waste management. We look forward to demonstrating our best-in-class operating capabilities at these two high-performing, state-of-the-art facilities."
Palm Beach Renewable Energy Facility (PBREF) No. 1 – Originally built in 1989 and completely refurbished in 2008, PBREF No. 1 is a refuse derived fuel facility with a waste processing capacity of 795,000 tons-per-year and generates up to 60 megawatts of clean electricity. The facility's operating contract expires in 2029 and includes renewal options.
Palm Beach Renewable Energy Facility No. 2 – Completed in 2015, PBREF No. 2 is the newest EfW facility in the United States. The one million tons-per-year mass burn facility generates up to 95 megawatts of clean electricity. Its operating contract expires in 2035.
Historically, the operating and maintenance contracts for the combined facilities have generated approximately $60 million in annual revenues.
Covanta currently operates six EfW facilities in Florida with a combined 3.6 million tons-per-year of waste disposal capacity. The company expects to achieve synergies by leveraging its scale, operational expertise and in-house maintenance capabilities.