Covanta Energy and Camden County Energy Recovery Associates LP applied May 2 at the Federal Energy Regulatory Commission for approval of a sale of a 32-MW, biomass-fired power plant in New Jersey.
Under the proposed deal, two wholly owned direct or indirect subsidiaries of Covanta Energy will acquire 100% of the ownership interests in Camden, which is owned by Camden County Energy Recovery Corp. (CCERC) and Foster Wheeler Inc. (FWI). Camden owns and operates a 32-MW small power production facility located in Camden County, N.J., within the PJM Interconnection region. The plant is interconnected with transmission facilities owned and controlled by Public Service Electric and Gas (PSEG). As a result of the proposed transaction, control over Camden and its jurisdictional assets will transfer from CCERC and FWI to Covanta Energy.
The primary fuel source for the facility is biomass in the form of municipal solid waste, which is combusted on reciprocating stoker grates.
Camden is owned by CCERC and FWI, which are indirect, wholly owned subsidiaries of Foster Wheeler AG, a Swiss holding company whose shares are publicly traded on the NASDAQ stock market. Through its subsidiaries, Foster Wheeler AG is primarily engaged in global engineering and construction contracting and power equipment supply businesses.
Covanta Energy is a wholly owned subsidiary of Covanta Holding, which is listed on the New York Stock Exchange and is engaged in the energy and insurance businesses through its subsidiaries. Covanta Holding’s indirect energy subsidiaries are engaged in the business of developing, constructing, owning and/or operating projects for the conversion of waste to energy and independent power production both domestically and abroad and providing related infrastructure services. Within the PJM balancing authority area, Covanta Energy already has interests in various entities that own and/or operate generation facilities, including:
- Covanta Alexandria/Arlington, which owns and operates an approximately 21 MW (net) waste-to-energy qualifying small power production facility in Alexandria, Va.
- Covanta Delaware Valley LP, which leases and operates an approximately 79.5 MW (net) waste-to-energy qualifying small power production facility, located in Chester, Pa.