Waste management company Covanta Holding Corporation (CVA - Free Report) entered into a partnership with Clean Energy Fuels Corp. (CLNE - Free Report) to jointly develop compressed natural gas (‘CNG’) stations at select facilities of the former. The partnership will leverage the existing facilities of Covanta, and the agreement will be mutually beneficial as the usage of compressed natural gas is on the rise in U.S.
Covanta Holding Corporation’s Energy-from-Waste facilities provide communities with an environmentally sound solution to their solid waste disposal needs by using it to generate clean and renewable energy.
Covanta presently operates 53 facilities, which are managing waste efficiently and turning it into energy. Now the new CNG facilities will complement the existing operations and offer more benefits to consumers.
Each CNG station will provide compressed natural gas for a minimum of 30 refuse trucks a day, and depending on the location will also supply CNG for public usage. People are choosing CNG over fossil fuel to run their vehicles given its lower price. Not only will CNG usage lower the cost of operating vehicles, it will also substantially reduce the emission of green house gas.
The companies have settled on Covanta’s Essex County Resource Recovery Facility in Newark, New Jersey for the first CNG station. The locations for other stations are yet to be finalized.
The approach of these two companies is appreciable as they are working towards providing a cleaner and pollution-less future. Covanta Holding currently retains a short-term Zacks # 3 Rank (Hold).
The work done by Covanta Holding over the last year to provide a clean energy solution has not gone unnoticed. Over the past twelve months, the share value has gone up by 43.2% to $18.66. This fact indicates that the investing community has appreciated the performance of the company.
Covanta Holding Corporation owns and operates large-scale Energy-from-Waste and renewable energy projects. With a market cap of $2.44 billion, the company has 3,700 employees.