New Jersey, United States [RenewableEnergyWorld.com] Covanta Holding Corporation announced that it has entered into an agreement to purchase two biomass energy facilities from co-owners Ridgewood Maine L.L.C. and Indeck Energy Services Inc. The two nearly identical facilities, located in West Enfield and Jonesboro, Maine, will add a total of 49 megawatts (MW) to Covanta’s renewable energy portfolio, which currently includes six biomass facilities and 38 waste-to-energy facilities.
The acquisition will represent a 35% increase in gross electrical capacity for Covanta’s biomass facilities. The company said that it intends to sell both the electric output and renewable energy credits from these new facilities into the New England market. Covanta has agreed to acquire the plants for a total of approximately US $87 million. The transaction will be funded from cash on hand and/or by drawing upon the company’s existing revolving loan facility, the company said.
“We are very excited about acquiring these two biomass facilities to expand our renewable energy portfolio,” said Anthony Orlando, president and CEO of Covanta. “Our operating expertise and existing infrastructure will enable us to maximize their value. Furthermore, we see strategic benefits by expanding our presence in New England, which enjoys strong demand and regulatory incentives for renewable electricity.”