Covanta, New York City, ink waste-to-energy deal

By Anna Simet | August 29, 2013

Aligning with New York City’s goal of diverting 75 percent of its waste from landfills, Covanta Energy Inc. has scored a deal with the New York City Department of Sanitation to annually process nearly 800,000 tons of municipal solid waste (MSW) into energy.

Under the 20-year agreement, which provides options for two additional five-year periods, MSW will be delivered to two marine transfer stations in Queens and Manhattan, N.Y. It calls for waste to be transported in sealed containers using barges and railcars, in order to reduce long-haul truck transport of MSW.

James Regan, Covanta corporate communications associate, said the waste will be railed to Covanta Niagara in Niagara Falls, N.Y., and Covanta Delaware Valley, which is just south of Philadelphia. “The NYC contract will not require any expansion of waste processing capacity at either facility,” he said. “NYC waste will simply displace waste that is currently under short-term contracts.”

Covanta expects service for the Queens marine transfer station 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.  Terms of the agreement include the purchase of equipment, including barges, railcars, containers and intermodal equipment, by Covanta, which expects its total investment over several years to be approximately $110 million.