Covanta begins construction on 640M Irish project

Covanta Holding Corporation announced Friday that it has begun construction on an energy-from-waste facility in Dublin, Ireland.The Morristown-based energy solutions company said in a news release that the $640 million project will supply clean, renewable energy to 80,000 homes, with the possibility of meeting the needs of an additional 50,000 homes in the future.

The project is scheduled to go online in late 2017.

“We are extremely pleased to be partnering with the Dublin regional authorities to commence construction of this very important project, and I’m confident that this public-private partnership will deliver long-lasting value for our client communities, as well as for our shareholders,” Covanta CEO and President Anthony J. Orlando said in the release. “The facility will be state-of-the-art in all respects, including energy efficiency and environmental performance, and will provide a meaningful boost for the local economy.”

Covanta said its project agreement with the city of Dublin will cover 45 years of facility operations, after which the ownership of the plant will revert to the city. During the first 15 years of operations, the city and Covanta will share any gain or loss from facility waste revenue, relative to a baseline projection. The city and company also will share in energy revenue throughout the full term of the project. Covanta will be responsible for sourcing the waste supply for the facility.

Covanta is investing approximately $160 million in the project, with the rest of the funding supplied through third parties, including $385 million in project debt and a $95 million investment by private equity firm First Reserve’s energy infrastructure arm.

Macquarie Capital served as exclusive financial adviser to Covanta.

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