News | February 9, 2006

Covanta Announces Contracts For Waste-to-Energy Facility Expansion

Operations and Maintenance Agreement Extended Construction of Plant Expansion Commences

Fairfield, NJ — Covanta Holding Corporation, has announced the execution of contracts with Lee County, Florida to manage the construction of a 636 TPD (ton per day) capacity expansion to Lee County's 1,200 TPD waste-to-energy facility located in Fort Myers, and to extend Covanta's current service agreement to operate and maintain the expanded facility. Covanta's subsidiary constructed and has been operating the existing facility since 1994. Construction of the expansion is now underway and is expected to be placed into operation in 2007. The facility serves as an integral component of the comprehensive solid waste management plan of Lee County, which includes recycling, composting, waste-to- energy and landfilling.

Covanta's service agreement, which was set to expire in 2014, has also been amended to include the expansion, and extended for an additional 10 years until 2024. Throughout the term of the extended agreement Covanta will operate and maintain the facility to deliver environmentally-sound waste disposal and clean, renewable energy.

"It is encouraging to once again see construction of modern waste-to- energy disposal capacity as a critical component of a community's integrated solid waste management plan. Lee County's decision to expand its facility reinforces the strategic role waste-to-energy plays in recovering energy and materials from the wastestream in an effort to further reduce reliance on landfilling. We look forward to continuing our long-standing partnership as we work with the County to complete the expansion of their facility," said Anthony J. Orlando, Chief Executive Officer of Covanta.

The Lee County facility's existing two boiler units, utilizing the proprietary combustion grate and controls technology of Martin GmbH, annually process over 372,000 tons of residential and commercial solid waste generated in the County. Waste is converted first to steam and then to electricity which is sold by Lee County to Seminole Electric Cooperative. With the expansion which includes the addition of a third boiler unit, also featuring Martin technology, the facility's capacity will increase by 50%

SOURCE: Covanta Holding Corporation