(By Balaseshan) Covanta Energy Corp. (NYSE: CVA), which focuses in sustainable waste management and renewable energy, said it has extended partnership with municipalities in the Bristol, CT area for sustainable waste disposal.
Under the new 20-year agreement, Covanta will provide sustainable waste disposal at the Bristol Resource Recovery Facility, in addition the agreement provides for bundled services including recycling, bulky waste disposal, e-waste recycling and the management of organics/composting.
The new agreement continues a long-term partnership between Covanta and the municipalities that make up the Bristol Resource Recovery Facility Operating Committee (BRRFOC) that began with the development and construction of the Bristol Resource Recovery Facility in 1988.
The existing "service fee" agreement will end June 30, 2014 at which time the new "tip fee" agreement will commence. Under the new agreement, the BRRFOC municipalities will supply approximately half of the facility's waste disposal capacity.
The Bristol Resource Recovery Facility processes approximately 650 tons of municipal solid waste per day into 16 megawatts of clean, renewable electricity -- enough to power about 10,000 homes.
Energy-from-Waste facilities like Covanta Bristol complement recycling efforts and reduce greenhouse gases by avoiding methane from landfills, offsetting greenhouse gases from fossil fuel electrical production and recycling metals.
By including all facets of sustainable waste management in the bundled services agreement -- not just waste disposal -- the municipalities will save money with stable, predictable rates over the 20 year life of the agreement.
Covanta will also provide educational outreach funds to the municipalities to be used for a variety of projects including hazardous household waste collections and energy-from-waste and recycling education programs.
CVA is trading down 0.55% at $18.12 on Wednesday. The stock has been trading between $13.04 and $19.03 for the past 52 weeks.