Covanta to Acquire Two Biomass Energy Facilities in California

Covanta Holding Corporation, which is involved in the development and operation of large-scale energy-from-waste and renewable energy projects, announced its agreement to purchase two biomass energy facilities and a biomass energy fuel management business from the AES Corporation, all located in California’s Central Valley.

These facilities will add 75 megawatts (MW) to Covanta’s portfolio of renewable energy plants, which currently includes four biomass facilities and more than 30 energy-from-waste facilities. Covanta agreed to pay approximately $51 million for these renewable energy assets. In addition, Covanta expects to invest between $15 and $20 million in capital improvements to increase the facilities’ productivity and environmental performance.

Closing of the acquisition remains subject to receipt of certain regulatory approvals, which are anticipated to be received during the third quarter of 2007.

“We are very excited about adding these two wood waste facilities to our portfolio,” said Anthony Orlando, President and Chief Executive Officer of Covanta. “Furthermore we see strategic benefit of increasing our renewable generation portfolio, particularly in California given its nationwide leadership in setting goals to reduce greenhouse gas emissions and promote clean, renewable alternatives to fossil fuels.”

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