Profile: Covanta Holding Corp (CVA.N)
20 May 2019
Covanta Holding Corporation, incorporated on April 16, 1992, is a holding company. The Company, through its subsidiaries, owns and operates infrastructure for the conversion of waste to energy, as well as other waste disposal and renewable energy production businesses. The Company operates through North America segment, which consists of waste and energy services operations located primarily in the United States and Canada. Outside of North America, the Company is constructing an energy-from-waste (EfW) facility in Dublin, Ireland. The Company holds interests in an EfW facility in Italy and an infrastructure business in China, which is engaged in EfW operations.
The Company processed approximately 20 million tons of solid waste annually. As of December 31, 2016, the Company operated and/or had ownership positions in 42 EfW facilities, which are primarily located in North America, and five additional energy generation facilities, including other renewable energy production facilities in North America (wood biomass and hydroelectric). In total, these assets produce approximately 10 million megawatt hours (MWh) of baseload electricity annually. The Company also operated waste management infrastructure, including 17 waste transfer stations, 15 environmental services facilities, four landfills (primarily for ash disposal) and one metals processing facility, as of December 31, 2016.
The Company's EfW projects generate revenue from three main sources: fees charged for operating projects or processing waste received; the sale of electricity and/or steam, and the sale of ferrous and non-ferrous metals that are recovered from the waste stream as part of the EfW process. The Company also generates additional revenue from the construction, expansion or upgrade of a facility, when a municipal client owns the facility. Its customers for waste services or facility operations are principally municipal entities, though the Company also markets disposal capacity at certain facilities to commercial customers. Its facilities primarily sell electricity, either to utilities at contracted rates or, in situations where a contract is not in place, at prevailing market rates in regional markets (primarily PJM, New England Power Pool (NEPOOL) and New York Independent System Operator (NYISO) in the Northeastern United States), and in some cases sell steam directly to industrial users.
The Company's EfW projects can be divided into three categories, based on the applicable contract structure at a project: Tip Fee projects; Service Fee projects that it owns, and Service Fee projects that it does not own but operate on behalf of a municipal owner. The Company also operates and/or have ownership positions in environmental services businesses, transfer stations and landfills (primarily for ash disposal) that are ancillary and complementary to its EfW projects and generate additional revenue from disposal or service fees.
Covanta Holding Corp
445 South St
MORRISTOWN NJ 07960-6475