Covanta Holding Corporation, Morristown, New Jersey, announced its agreement to purchase a subsidiary of Babcock & Wilcox Enterprises Inc., Charlotte, North Carolina, 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.
"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,” Covanta's President and CEO Stephen Jones says. “We look forward to demonstrating our best-in-class operating capabilities at these two high-performing, state-of-the-art facilities."
The details of the facilities are as follows:
- Palm Beach Renewable Energy Facility (PBREF) No. 1: This facility was originally built in 1989 and was 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 can generate 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: This facility was completed in 2015 and is the newest EfW facility in the United States. The 1 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.