US-headed waste management major Covanta Holding Corporation (Covanta) has announced that it has reached an agreement to purchase a subsidiary of Babcock & Wilcox Enterprises, Inc., with the operating and maintenance (O&M) contracts for two Energy-from-Waste (EfW) facilities in Palm Beach County, Florida for US$45 million.
Both 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.
- Palm Beach Renewable Energy Facility No. 1 – Originally built in 1989 and completely refurbished in 2008, PBREF No. 1 is a refuse-derived fuel (RDF) facility with a waste processing capacity of 795 000 tons-per-year and generates up to 60 MW 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 MW of electricity. Its operating contract expires in 2035.
Historically, the operating and maintenance contracts for the combined facilities have generated approximately US$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.
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, said Stephen J. Jones, President and CEO of Covanta.
