Covanta has announced a new 20-year agreement with the New York City Department of Sanitation to transport and sustainably dispose of municipal solid waste (MSW).
The waste is to be delivered to a pair of marine transfer stations located in Queens and Manhattan.
“New York City is a leader in addressing climate change which makes us particularly proud that they chose Covanta and our Energy-from-Waste solution to help achieve one of their important sustainability goals,” said Anthony Orlando, Covanta president and CEO in an August 26, 2013 statement to media. “This contract is also important to Covanta because it will provide a significant and stable base of revenue, further enhancing our already predictable business model.”
The agreement is for 20 years of service and it provides New York City with options for two additional five-year periods. It calls for waste to be transported via sealed containers using a multi-modal approach including barges and railcars which will significantly reduce long-haul truck transportation of MSW.
Service for the Queens marine transfer station is expected to begin in early 2015, with service to the Manhattan marine transfer station to follow in 2016 when construction work is expected to be completed by New York City. To fulfill its obligations under this agreement, Covanta must purchase equipment, including barges, railcars, containers and intermodal equipment. Covanta expects its total investment to purchase this equipment will be approximately $110 million. This investment will be made over several years beginning in 2013.
Covanta is a world leader in sustainable waste management and renewable energy. The Company’s 45 Energy-from-Waste facilities provide communities and businesses around the world with an environmentally sound solution to their solid waste disposal needs by using waste to generate clean, renewable energy.