Covanta Holding to Purchase Two Biomass Energy Facilities in Maine
Covanta Holding, a developer of renewable energy facilities, has entered into an agreement to purchase two biomass energy facilities from co-owners Ridgewood Maine and Indeck Energy Services.
The two nearly identical facilities, located in Maine’s West Enfield and Jonesboro communities, will add a total of 49MW gross to Covanta’s renewable energy portfolio, which currently includes six biomass facilities and 38 energy-from-waste facilities.
The acquisition will represent a 35% increase in gross electrical capacity from Covanta’s biomass facilities. Covanta intends to sell the electric output and renewable energy credits from these new facilities into the New England market.
Covanta has agreed to acquire these two facilities for approximately $87 million net of cash acquired. The transaction will be funded from cash on hand or by drawing upon the company’s existing revolving loan facility.
Closing of the acquisition remains subject to receipt of certain regulatory approvals as well as approval by Ridgewood’s shareholders. These conditions are anticipated to be met by the end of 2008.