Covanta Holding Corporation ( CVA Quick Quote CVA - Free Report) has entered into a sustainable waste disposal agreement with the Town of North Hempstead, NY. This five-year plan became effective Jan 1, 2021 and has an option to be extended for another 10 years. Details of the Deal
With this agreement, the Town will use the Covanta Hempstead Waste-to-Energy facility located in Westbury to dispose 140,000 tons of waste annually, which it earlier used to dump in off-island landfills. The facility combusts wastes at extremely high temperatures to generate steam for electricity production. Through this process, the company reduces greenhouse gases by eliminating methane emissions from landfills.
Benefits of the Deal
The move marks a switch to local Waste-to-Energy option, which will significantly shrink North Hempstead’s carbon footprint and play a vital role in its transition to a zero-carbon economy. This deal will trim 4,000 tons of carbon dioxide from vehicle emissions annually along with lowering truck traffic on Long Island’s busy highways. Also, it will eliminate 140,000 tons of carbon dioxide equivalent that would otherwise be generated.
Covanta’s Waste Management Solutions
Over the past several years, Covanta has been investing substantially in purchasing property, plant and equipment. These investments are made to address the infrastructural need while growing the company’s customer base for various capital projects and acquisitions to increase safety and reliability of its Energy-from-Waste projects, and provide solutions for solid waste and recyclable households besides various hazardous wastes.
Notably, Covanta's modern Energy-from-Waste facilities safely convert approximately 21 million tons of waste from municipalities and businesses into clean, renewable electricity to power one million homes. Currently, the company operates four Waste-to-Energy facilities on Long Island, which collectively processes 1.8 million tons of waste, thereby generating electricity to power 100,000 homes. The latest deal signed with the Town of North Hampstead will therefore boost Covanta’s strategy to provide renewable energy solutions from wastes. Zacks Rank & Price Performance
Covanta currently carries a Zacks Rank #4 (Sell).
You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here In the past three months, the stock has rallied 75.3%, outperforming the industry’s rise of 20.2%. Stocks to Consider
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