Under 20-year agreement, Covanta will transfer and convert to energy municipal solid waste generated by the city.
Covanta, based in Morristown, N.J., has signed a 20-year agreement with the New York City Department of Sanitation to transport and sustainably dispose of municipal solid waste (MSW) delivered to two marine transfer stations in Queens and Manhattan.
Covanta plans to use the capacity at its facilities in Niagara Falls, N.Y., and Delaware Valley, Pa., to convert the New York City’s waste into energy. Covanta’s Niagara Falls facility has a rated capacity of 2,250 tons per day, while its Delaware Valley plant has a capacity of 3,500 tons per day.
According to Covanta, the city will deliver about 800,000 tons of MSW per year to the company.
“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,” says Anthony Orlando, Covanta president and CEO. “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 provides New York City with options for two additional five-year periods. It calls for waste to be transported via sealed containers using a multimodal approach including barges and railcars. 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.
A spokesman for Covanta says that the Niagara Falls location has a rail siding, while the Delaware facility has a rail siding nearby.
According to a release, to fulfill its obligations under this agreement, Covanta will have to 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.