JUNE 6, 2007 - COVANTA ANNOUNCES 10 YEAR AGREEMENT TO OPERATE THE HARRISBURG ENERGY-FROM-WASTE FACILITY

 

Fairfield, NJ – June 6, 2007: Covanta Holding Corporation (NYSE: CVA) today announced it has entered into a ten year agreement with the Harrisburg Authority to maintain and operate their 800 ton per day Energy-from-Waste facility located in Harrisburg, Pennsylvania. The facility is capable of generating over 24 MW of clean renewable electricity and also has the ability to sell steam. With this agreement Covanta now operates 32 Energy-from-Waste facilities domestically, further strengthening the company’s industry leading position.

 

“As a world leader in developing, building and operating Energy-from-Waste facilities, we are committed to using our expertise and corporate resources to optimize the facility’s performance,” said Anthony Orlando, Covanta’s Chief Executive Officer. “Covanta has a proud tradition of working in partnership with municipal clients to operate Energy-from-Waste facilities as part of an integrated waste management solution. We are very excited to include the Harrisburg Authority among our clients and we look forward to a positive relationship with the Harrisburg community for many years to come.”

 

Under the agreement, Covanta will earn a base annual service fee of approximately $10.5 million, which is subject to annual escalation. Further, Covanta receives incentive fees to increase facility production, which will reduce the Authority's waste disposal cost. Covanta has also entered into a Construction Management Agreement with the Authority to manage and provide funding for certain facility improvements required to enhance facility performance. These new agreements will become effective when certain condition precedents occur which is expected within 60 days.

 

 

Covanta is an internationally recognized owner and operator of Energy-from-Waste and power generation projects. Covanta’s Energy-from-Waste facilities convert municipal solid waste into clean, renewable energy for numerous communities. As a world premier operator of large-scale Energy-from-Waste facilities, with more than 30 facilities world-wide, Covanta is proud to offer an environmentally sound solution to communities’ solid waste disposal needs. Covanta’s modern facilities safely and securely turn 15 million tons of waste into over 8 million megawatt hours of renewable electricity each year and create 10 billion pounds of steam that are sold to a variety of industries. In addition to the benefits of producing clean, renewable energy, Covanta’s Energy-from-Waste facilities also displace greenhouse gas emissions that otherwise result from combustion of fossil fuels for energy generation, and from landfill disposal of waste. For more information, visit www.covantaenergy.com.

 

 

 

Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission, all as may be amended from time to time.  Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta and its subsidiaries, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Statements that are not historical fact are forward-looking statements.  Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words "plan," "believe," "expect," "anticipate," "intend," "estimate," "project," "may," "will," "would," "could," "should," "seeks," or "scheduled to," "proposed," or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions.  These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws.  Covanta cautions investors that any forward-looking statements made by Covanta are not guarantees or indicative of future performance.  Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements with respect to Covanta, include, but are not limited to, those factors, risks and uncertainties that are described in Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2006, and in subsequent securities filings by Covanta. 

Although Covanta believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, actual results could differ materially from a projection or assumption in any forward-looking statements.  Covanta's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The forward-looking statements contained in this press release are made only as of the date hereof and Covanta does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

 

Gavin Bell

Covanta Holding Corporation

973-882-7107

 

Derek Porter

Covanta Energy

703-236-2817