Covanta Holding Corporation
) has announced partnership with nine Western Massachusetts
municipalities to provide a package of sustainable waste
management services. However, the company's share price edged
down 1.0% to $17.52 per share on Apr 15.
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Per the agreement, the nine municipalities will send
approximately 25K tons of municipal solid waste to the Covanta
Springfield Energy-from-Waste facility. This facility generates
renewable electricity for 5,000 homes. The new partnership will
likely start from July this year. If this partnership works well,
the agreement may be extended after the completion of the initial
The company also offers energy-from-waste disposal, recycling,
bulky waste disposal, e-waste recycling and organics
recycling/composting programs under its waste management
services. In addition, the company provides disposal and
renewable energy for the municipal as well as the commercial
Covanta Holding, a leading waste technology management firm, is
looking forward to the success of recycling and energy recovery
process. Management expects to reduce greenhouse gases by
approximately 260 million tons, which is equivalent to closing of
75 coal fired power plants or pulling 55 million cars off the
road every year.
In Dec 2013, Covanta's subsidiary Covanta SEMASS, L.P., entered
into an agreement with the Town of Yarmouth, MA to provide a
bundle of sustainable waste management services. Per the
contract, the company will provide sustainable disposal of about
10,000 tons of Town's municipal solid waste at the Covanta SEMASS
Though the company delivered fourth-quarter 2013 results below
the Zacks Consensus Estimate of 21 cents by 14.3%, it expects a
stable revenue flow from a 20-year waste transport and disposal
agreement with the New York City Department of Sanitation last
Currently Covanta Holding carries a Zacks Rank #3 (Hold). Other
better-ranked stocks in this sector include
Ormat Technologies Inc.
Pattern Energy Group Inc.
). While Ormat Technologies holds a Zacks Rank #1 (Strong Buy),
Pattern Energy and Ceres carry a Zacks Rank # 2 (Buy).