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Covanta creates European EfW division

American waste management company Covanta has announced plans to create a standalone division for its energy from waste (EfW) operations in Europe.

Covanta's Rookery South facility in Bedford

The company currently operates the recently opened Rookery South Energy Recovery Facility in Bedford, alongside two other plants in Dublin, Ireland, and Milan, Italy.

Covanta is also currently building the Newhurst facility in Leicestershire, the Protos facility in Cheshire, and the Earls Gate Energy Centre in Grangemouth.

In a statement, the company said the separation of Covanta and Covanta Europe was a “key step” to “unlock significant growth potential and enable further value creation across both platforms.”

The structure will allow management to focus on “leveraging their local insights, experiences and operational capabilities,” Covanta says.

Global investment firm EQT Infrastructure, Covanta’s owner, will retain ownership of Covanta Europe.

The standalone platform will be led by its current president and CEO, Owen Michaelson, who will be supported by a new board of directors chaired by Dr Philip Nolan, the current chair of Associated British Ports.

Both platforms will leverage EQT’s “global reach and expertise” in the market, Covanta says, and benefit from increased flexibility to pursue “value-enhancing opportunities unique to their respective geographies and strategic priorities”.

Expanding infrastructure

Covanta’s announcement follows news from January that it had begun operations at the Rookery South plant after a three-year construction phase (see letsrecycle.com story).

I commend the team at Covanta Europe for their efforts in expanding waste infrastructure overseas

Azeez Mohammed, Covanta’s president and CEO

Then, in early March, EQT Infrastructure announced it had bought out the Green Investment Group’s 50% stake in four EfW plants across the UK (see letsrecycle.com story).

Meanwhile, it is thought commissioning at the Newhurst facility is to begin later this year.

Azeez Mohammed, Covanta’s president and CEO, said: “The division of Covanta into two exclusive geographical sets presents us with an incredible opportunity to focus on market growth in the respective regions.

“In North America, we now look ahead to expanding our new sustainable waste solution service offerings and enhanced operations of our assets, such as metals recovery and Covanta Environmental Solution business lines.

“I commend the team at Covanta Europe for their efforts in expanding waste infrastructure overseas and look forward to their continued collaboration in the ensuing months.”

‘Great opportunity’

Mr Michaelson said Covanta Europe was “excited” to “further support the transition to a circular economy in Europe” as a standalone platform.

Owen Michaelson is president and CEO of Covanta Europe

He added: “Building on this positive momentum and the successful handover of the Rookery South Energy Recovery Facility, safely delivered on time and on budget despite the challenging conditions resulting from Covid-19, we continue to see great opportunity in Europe with several sites in construction and more sustainable development ahead.”

Covanta says it converts approximately 21 million tons of waste from municipalities and businesses into electricity and recycle 600,000 tons of metal globally each year.

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