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Covanta to Assume Operations of Two Florida EfW Facilities
Agreement reached to purchase subsidiary of Babcock & Wilcox with operating and maintenance contracts. The transaction is expected to close in Q3 2018.
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Covanta Holding Corporation announced its agreement to purchase a subsidiary of Babcock & Wilcox Enterprises, Inc., with the operating and maintenance contracts for two energy-from-waste (EfW) facilities in Palm Beach County, Fla., 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,” said Stephen J. Jones, Covanta’s president and CEO, in a statement. “We look forward to demonstrating our best-in-class operating capabilities at these two high-performing, state-of-the-art facilities.”
Here are a few facility details:
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 tons per year and generates 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 – 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 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 said it expects to achieve synergies by leveraging its scale, operational expertise and in-house maintenance capabilities.
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