Company says the deal secures its long-term control of the asset.
Covanta Holding Corp., Morristown, N.J., has announced the purchase of the Delaware Valley Resource Recovery facility in Chester, Pa., from GE Energy Financial Services (GE EFS) for $94 million in cash.
The Delaware Valley facility, which Covanta operates and previously leased from GE EFS, has a processing capacity of about 2,700 tons per day. The facility provides waste management services to Delaware County, Pa. and surrounding communities.
"Acquiring ownership of the Delaware Valley facility is a smart financial transaction for us,” says Anthony Orlando, Covanta's CEO and president. “In addition, we will now enjoy the benefit of ownership, which we believe will open new opportunities and strengthen our client relationship with the Delaware County Solid Waste Authority.”
At maximum output, the facility generates about 80 megawatts of electricity, 90 percent of which is sold to a local utility. The plant has the capacity to accept up to 500,000 tons of additional waste each year from surrounding counties, according to a Covanta news release.