Covanta Energy Announces Contracts Florida Waste-to-Energy Facility

Hillsborough County decision makers point to long-standing service and award winning performance record.

Fairfield, NJ - Covanta Energy Corporation, a wholly-owned subsidiary of Danielson Holding Corporation, has announced the execution of contracts with Hillsborough County, FL to construct and to operate and maintain an estimated $106 million expansion to the Hillsborough County Solid Waste Energy Recovery Facility ("Facility"). Covanta's subsidiary constructed the Facility and has been operating it since 1987. Construction of the expansion should begin in mid to late 2006 once necessary Federal, State and local permits are obtained by the County, with completion expected within 28 months.

Covanta's original 20-year contract with the County to operate and maintain the Facility has also been amended to include the expansion and to extend the contract for another 20 years during which Covanta will continue to meet operating and environmental performance standards.

"We are very gratified by Hillsborough County's confidence in Covanta to manage, design and construct the expansion and continue operating this important component of its integrated waste management system," said Anthony J. Orlando, Chief Executive Officer of Danielson and Covanta. "We look forward to continuing our long-standing partnership with the County to deliver both reliable and environmentally-sound waste disposal to County residents."

The Facility's three 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 to Tampa Electric Company. With the expansion, a fourth boiler unit, also featuring Martin technology, will be added to increase annual processing capability by approximately 190,000 tons of solid waste per year. Additionally, at no cost to the County, Covanta will design, build and operate a new non-ferrous metal recovery system. The Company will market non-ferrous metals recycled from the combustion residue to recover its initial investment in this recycling component and will thereafter share resulting revenues with the County.

SOURCE: Covanta Energy Corporation