SOURCE: Covanta Energy

September 13, 2012 08:30 ET

Covanta Energy Announces Plans to Upgrade the Essex County Resource Recovery Facility

Covanta to Install New Emissions Control and Metals Recycling Systems

New Arrangement With the Port Authority of NY/NJ Shifts Control to Covanta and Includes New 20 Year Waste Delivery Contract for Approximately Half of the Facility's Capacity

NEWARK, NJ--(Marketwire - Sep 13, 2012) - Covanta Energy Corporation (NYSE: CVA), a world leader in sustainable waste management and renewable energy, today announced plans to upgrade the Essex County Resource Recovery Facility, which it operates in Newark. New arrangements with the Port Authority, which go into effect on January 1, 2013, give Covanta control of the facility through at least 2032, with options through 2052. They also pave the way for Covanta's investment in significant operational improvements, including a state-of-the-art particulate emissions control system and a new recycling system for ferrous and non-ferrous metals.

"Covanta is committed to providing the cleanest and most reliable source of energy from waste in the world and we are proud to be a good corporate neighbor to the residents of Newark and all the communities we serve," said Anthony Orlando, president and Chief Executive Officer of Covanta Energy. "Our plans to upgrade the Essex County facility represent a significant investment by Covanta and we expect to achieve attractive returns from both an environmental and financial perspective."

Commenting on Covanta's role in the community, Essex County Executive Joseph N. DiVincenzo, Jr. said, "Covanta Energy has been a terrific corporate neighbor and advocate for the Ironbound community. The incorporation of new technology and expanded services are continuing examples of the company's commitment to enhancing our residents' quality of life and protecting the environment."

The facility upgrades are part of a series of agreements between Covanta, the Port Authority and the New York City Department of Sanitation relating to facility operations. Under this new 20 year contract, New York City will continue to utilize about half of the facility's sustainable disposal capacity. Going forward, Covanta will provide disposal services for all customers on a tip fee basis.

Covanta is working closely with the New Jersey Department of Environmental Protection on all necessary permits and will install the state-of-the-art particulate emissions control system, called a baghouse, on each of the Essex facility's three combustion units. Construction is expected to commence in 2014 and be complete by 2016. The facility's environmental performance is currently compliant with all environmental permits and will be further improved with the baghouse installation.

"Nothing is more fundamental to our wellbeing than the air we breathe," said Newark Mayor Cory A. Booker. "This new baghouse filter represents a milestone in using advanced technology to protect public health and enhance the quality of life in Newark. As a strong advocate for this upgrade, I am proud to be celebrating today's major achievement with Covanta and everyone else who made it possible. We look forward to deepening all our partnerships for Newark's sustainability, so that the urban environment supports health and prosperity for all who live, work, and play here."

In addition to the baghouse filter and the ferrous and non-ferrous metals recycling systems, Covanta is also installing a compressed natural gas (CNG) refueling station on site at the facility. The CNG refueling station will serve the next generation of solid waste collection vehicles that are fueled by the cleaner-burning gas. Covanta expects the CNG refueling station to begin operating later this year.

Covanta's total investment will be approximately $75 to $100 million and ensures all stakeholders continue to benefit from the facility which processes 2,800 tons of municipal solid waste per day into approximately 65 megawatts of clean energy -- enough to power approximately 45,000 homes.

About Covanta
Covanta Energy Corporation is an internationally recognized owner and operator of large-scale Energy-from-Waste and renewable energy projects and a recipient of the Energy Innovator Award from the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy. Covanta's 44 Energy-from-Waste facilities provide communities with an environmentally sound solution to their solid waste disposal needs by using that municipal solid waste to generate clean, renewable energy. Annually, Covanta's modern Energy-from-Waste facilities safely and securely convert approximately 20 million tons of waste into 9 million megawatt hours of clean renewable electricity and almost 9 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaenergy.com.