Loading...
Loading...
Covanta
,
a world leader in sustainable waste management and renewable energy,
announced today a new 20-year agreement with New York City Department
of Sanitation to transport and sustainably dispose of municipal solid
waste ("MSW") delivered to a pair of marine transfer stations located
in Queens and Manhattan. Covanta is the largest owner and operator of
Energy-from-Waste ("EfW") facilities in North America and plans to
utilize capacity at existing facilities to convert the City's MSW
into clean energy. It is anticipated New York City will deliver
approximately 800,000 tons of MSW per year which reflects the City's
continued efforts to reduce waste generation and increase recycling.
"New York City is a leader in addressing climate change which makes
us particularly proud that they chose Covanta and our
Energy-from-Waste solution to help achieve one of their important
sustainability goals," said Anthony Orlando, Covanta president and
chief executive officer. "This contract is also important to Covanta
because it will provide a significant and stable base of revenue,
further enhancing our already predictable business model."
The agreement is for 20 years of service and it provides New York
City with options for two additional five-year periods. It calls for
waste to be transported via sealed containers using a multi-modal
approach including barges and railcars which will significantly
reduce long-haul truck transportation of MSW. Service for the Queens
marine transfer station is expected to begin in early 2015, with
service to the Manhattan marine transfer station to follow in 2016
when construction work is expected to be completed by New York City.
To fulfill its obligations under this agreement, Covanta must
purchase equipment, including barges, railcars, containers and
intermodal equipment. Covanta expects its total investment to
purchase this equipment will be approximately $110 million. This
investment will be made over several years beginning in 2013.
The decision to utilize Energy-from-Waste facilities marks a major
milestone in reaching the City's goal of diverting 75 percent of
solid waste from landfills. Recovering energy and metal from
post-recycled waste at EfW facilities provides communities like New
York City with an environmentally superior alternative to
landfilling. According to the US EPA, for every ton of MSW processed
at Energy-from-Waste facilities, greenhouse gas emissions are reduced
by the equivalent of approximately one ton of carbon dioxide
emissions. This is possible due to the avoidance of methane from
landfills, the offset of greenhouse gases from fossil fuel electrical
production and the recovery of metals for recycling.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in