Covanta buys two biomass plants in Maine

Fairfield, N.J.-based Covanta Holdings (NYSE: CVA), a waste and energy services company, announced today that it signed an agreement to acquire two biomass energy facilities in Maine from co-owners Ridgewood Maine and Indeck Energy Services.

The $87 million deal will add 50 megawatts to Covanta's renewable energy portfolio, which currently includes six biomass facilities and 38 energy from waste plants.

"Our operating expertise and existing infrastructure will enable us to maximize their value," said Anthony Orlando, president and CEO of Covanta.

"Furthermore, we see strategic benefits by expanding our presence in New England, which enjoys strong demand and regulatory incentives for renewable electricity."

Covanta said the two Maine facilities, located in West Enfield and Jonesboro, are nearly identical, with both 25 MW plants operating circulating fluidized bed systems and using wood biomass feedstocks. The company said the biomass could include woodchips, sawdust, bark, tree trimmings, agricultural waste and wood recovered from construction demolition activities.

Last September, the company announced a deal to acquire the operating businesses of Albany, N.Y.-based EnergyAnswers (see Covanta buying EnergyAnswers for $61M). That agreement included two energy from waste facilities in Massachusetts.

Under today's deal, Covanta plans to sell the electric output and renewable energy credits from the Maine facilities into the New England market.

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