Covanta is to acquire a subsidiary of Babcock & Wilcox Enterprises with the operating and maintenance contracts for two Energy from Waste facilities in Palm Beach County, Florida for $45 million.
New Jersey based waste to energy firm, Covanta (NYSE:CVA), is to acquire 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 tonnes 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 tonnes per year and generates up to 60 MW 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 energy from waste facility in the US. The million tonne 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 $60 million in annual revenues.
Covanta currently operates six EfW facilities in Florida with a combined 3.6 million tonnes per year of waste disposal capacity.
The company said that it expects to achieve synergies by leveraging its scale, operational expertise and in-house maintenance capabilities.