Covanta Holding Corporation, a company that specializes in development, operation and ownership of energy-from-waste and renewable energy facilities, announced that it has signed an agreement to purchase two biomass energy facilities from co-owners Ridgewood Maine, L.L.C. and Indeck Energy Services.

 

The two facilities, located in West Enfield and Jonesboro, Maine, are similar and will add a total of 49 gross megawatts to Covanta's renewable energy portfolio. Covanta’s current holds include six biomass facilities and 38 energy-from-waste facilities.

 

The acquisition will represent a 35 percent increase in gross electrical capacity from biomass facilities for Covanta. The company intends to sell the electric output and renewable energy credits from these new facilities into the New England market.  

 

“Our operating expertise and existing infrastructure will enable us to maximize their value,” said  Anthony Orlando, president and CEO at Covanta, of the facilities. “Furthermore, we see strategic benefits by expanding our presence in New England, which enjoys strong demand and regulatory incentives for renewable electricity.” 

 

Covanta will be acquiring the two facilities for around $87 million net cash. The transaction will be funded from cash on hand and/or by drawing upon existing revolving loan facility. The acquisition is expected to be made final by the end of the year, after regulatory approvals and endorsement by Ridgewood’s shareholders.

 

Biomass energy facilities, also referred to as wood waste facilities, combust biomass to produce renewable electricity. Biomass may include: woodchips, sawdust, bark, tree trimmings, agricultural waste and wood recovered from construction demolition activities.  Biomass is believed to be the second-most common form of renewable energy used in the United States, providing enough electricity to power more than two million homes.

 

Founded in 1960 and headquartered in Fairfield, New Jersey-based, Covanta Holding develops, constructs, owns and operates energy-from-waste and renewable energy projects. The company has facilities in North America, Europe, and Asia. Covanta's 38 facilities convert more than sixteen million tons of waste into more than eight million megawatt hours of electricity and create ten billion pounds of steam that are sold to a variety of industries.