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Michigan Waste Energy Purchases Minority Stake in the Detroit Energy-from-Waste Facility and Secures Agreement to Continue Operating the Facility

Posted on: Wednesday, 1 July 2009, 06:30 CDT

DETROIT, July 1 /PRNewswire-FirstCall/ -- Michigan Waste Energy, a wholly-owned subsidiary of Covanta Holding Corporation (NYSE: CVA), today announced it will continue to operate the Energy-from-Waste Facility located in Detroit, Michigan. Since 1991, Michigan Waste Energy has operated the EfW facility, providing services to the City of Detroit under contract with the Greater Detroit Resource Recovery Authority (GDRRA). Covanta also announced that it has completed an agreement to purchase a 30% interest in the Detroit facility for an undisclosed price.

"We are extremely pleased that we will continue to operate the facility," said Seth Myones, President of Covanta Americas. "Covanta has consistently maintained the highest environmental, health and safety standards and we are proud to provide Detroit with a sustainable means of waste disposal while also helping the City meet its growing need for renewable power."

The facility processes approximately 800,000 tons of municipal solid waste annually, which are used to generate steam and clean, renewable electricity. Through this process, the facility has displaced more than 12 million tons of greenhouse gas emissions that would have occurred had GDRRA's waste been landfilled. The facility sells approximately 200,000 megawatt hours per year of electricity to Detroit Edison and also sells approximately 2.5 million klbs per year of steam to Detroit Thermal, which in turn, supplies steam for heating and cooling to 70% of the businesses on Detroit's downtown steam loop. The Detroit facility, which is the largest source of renewable energy in Michigan, is also one of the largest recyclers in the City of Detroit. We currently recover over 30,000 tons of metals a year and we look forward to supporting the efforts of Detroit as the city works to enhance its recycling programs.

Michigan Waste Energy employs approximately 160 skilled workers, 120 of which are members of Operating Engineers Union Local 547. The annual local economic impact on the Detroit economy is $25 million, $15 million of which is direct payroll for the "green" jobs sustained at the plant.

"Our outstanding operating and environmental track record at the Detroit facility is directly attributable to our talented employees who skillfully and reliably do their jobs. Covanta would like to thank each and every one of its Detroit employees as well as the Operating Engineers Union Local 547 for our long-standing productive relationship and their cooperation during this complicated transition process. We look forward to many years of continued partnership and to continuing in our role as a good corporate citizen of Detroit," added Myones.

In commenting on the decision to keep the facility open after months of speculation about its future, Philip Schloop, Business Manager and International Vice President for the Operating Engineers Union Local 547 noted that, "For the past 18 years we have enjoyed a constructive relationship with Covanta and we appreciate their efforts to preserve jobs for the hardworking men and women represented by the Operating Engineers. Keeping this facility open is a win - win! It helps the local economy with the preservation of skilled jobs and produces clean, renewable energy for the city."

Energy-from-Waste facilities, like the Detroit facility, provide environmentally sound waste disposal while generating clean, renewable energy. EfW facilities also recover ferrous and non-ferrous metals for recycling, reduce greenhouse gas emissions, and minimize the reliance on methane-emitting landfills and long distance transportation of municipal solid waste.

About Covanta

Covanta Energy is a subsidiary of Covanta Holding Corporation, an internationally recognized owner and operator of large-scale Energy-from-Waste and renewable energy projects and a recipient of the Energy Innovator Award from the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy. Covanta's 38 Energy-from-Waste facilities provide communities with an environmentally sound solution to their solid waste disposal needs by using that municipal solid waste to generate clean, renewable energy. Annually, Covanta's modern Energy-from-Waste facilities safely and securely convert approximately 17 million tons of waste into more than 8 million megawatt hours of clean renewable electricity and create 10 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaholding.com.

SOURCE Covanta Holding Corporation

Source: PR Newswire

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