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COVANTA Covanta and Green Investment Group to Break Ground on First UK Energy-from-Waste Project in Joint Development Pipeline

  • Dec 19, 2018
  • Electric Energy

Covanta Holding Corporation (NYSE: CVA) ("Covanta"), a world leader in sustainable waste management and renewable energy, today (12/18) announced financial close of the Earls Gate Energy Centre ("Earls Gate") with strategic development partner Green Investment Group (GIG). Covanta and GIG will each hold a 25 percent equity ownership in the project, with co-investor and developer Brockwell Energy owning the remaining 50 percent stake.

"With today's announcement we mark our entry into the UK market alongside GIG, following on the heels of our very successful partnership on the Dublin project earlier this year," said Covanta's President and Chief Executive Officer, Stephen J. Jones. "Earls Gate is the first of four advanced development projects in the UK to reach financial close, with the Rookery South, Protos and Newhurst projects lined up close behind. We are very pleased with our partnership with GIG and expect it to continue to add meaningful value as we bring additional projects to market. Our expectation remains that these UK projects alone will provide $40 to $50 million in incremental annual free cash flow to Covanta when they are all fully operational."

A combined heat and power facility located in Grangemouth, Scotland, Earls Gate is a well-structured project with long-term waste and energy contracts. Each year, the facility will prevent approximately 216,000 tonnes of mixed household, commercial and industrial waste that cannot be recycled from entering landfills. Instead, the waste will be used as fuel to generate low-carbon heat and power that will be supplied to a co-located industrial site host.

Construction of the facility will be led by Constructions Industrielles de la Mediterranee ("CNIM"), which has deep experience in energy-from-waste construction, primarily in Europe and the UK, and is expected to take approximately 36 months to complete. CNIM will also provide operations and maintenance services when the project commences operations in late 2021. Covanta will provide technical oversight services during construction and operations.