Casella Waste Systems Inc. is negotiating to sell a waste-to-energy facility and buy a landfill in Maine.

The Rutland, Vt.-based waste and recycling company said in a news release that it has a letter of understanding for the possible sale of the Maine Energy Recovery Facility (MERC) to the city of Biddeford, Maine. Casella would receive $7.5 million for the municipal solid waste combustion facility as part of the proposal. The deal would also include Casella acquiring the Juniper Ridge Landfill in Old Town from the state of Maine.

Casella said any transaction must represent fair market value for the MERC facility.