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User:NKR2009/covantaholding

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Covanta Holding Corporation
Company typePublic company
NYSE: CVA
Russell 2000 Component
IndustryRenewable Energy/Waste Management
HeadquartersMorristown, New Jersey
Key people
Stephen J. Jones, President and Chief Executive Officer[1]
Samuel Zell, Chairman[1]
Revenue$1,868.0 million (2018)[1]
$63.0 million (2018)[1]
$152.0 million (2018)[1]
Total assets$3,843 million (2018)[1]
Total equity$487.0 million (2018)[1]
Number of employees
~4,000 (2018)[1]
Websitewww.covanta.com

Covanta Holding Corporation is a public company headquartered in Morristown, New Jersey. It provides energy-from-waste and industrial waste management services. Most of its revenue comes from operating power plants that burn trash as fuel. Covanta charges a fee for waste disposal, sells electricity produced in the process and recovers metal for recycling.

Corporate history

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Early history

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Ogden Corporation, which later became the parent corporation of Covanta, was founded in 1939.[2] Ogden was originally a holding company for investments in utility businesses.[3] In 1952, Ogden acquired W.A. Case & Son Manufacturing Company, shifting its focus to manufacturing.[4] Over time, it expanded into other industries, like entertainment and food, through acquisitions.[4][5] In 1955, Ogden acquired a metal scrap recycling company called Luria Brothers.[5] Luria's former CEO Ralph E. Ablon became the CEO of Ogden in 1962.[6]

In the 1980s, David Sokol was appointed CEO.[7] Ogden shifted from primarily a manufacturing business to a services company.[6] By 1987, substantially all of Ogden's revenues were from services it didn't previously provide, like warehousing, running concession stands at stadiums, and janitorial services.[8] Its first investment in the services industry was the $118 million acquisition of Allied Maintenance Corporation in 1982.[6] In 1984, Ogden spun-off seven of its industrial businesses, which became owned primarily by Ogden employees.[6]

Energy-from-waste

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Ogden first entered the energy-from-waste business in 1983, when it acquired intellectual property rights to German incinerator technology commonly used in Europe, as well as a method of hazardous waste disposal.[3][8][9] By 1986, Ogden had five energy-from-waste plants under construction and agreements in place to build four more.[6] By 1995, half of Ogden's revenues were from energy-from-waste projects.[10]

In 1991, Ablon's son Richard took over as CEO.[4] Ogden acquired 19 companies in eight years.[11] In 1991, it acquired a professional services company called ERC Environmental and Energy Services for $80 million.[11] In 1995, Ogden was restructured into three divisions: aviation, energy, and entertainment.[10] Some of its less profitable businesses, such as computer services and concession stands, were sold.[10] In 1999, Ogden acquired several water parks, including Wet'n Wild Inc.[4]

In 1999, Ablon resigned as CEO and Scott Mackin was appointed.[12] That year, Ogden planned a restructuring where its aviation and entertainment divisions would be spun-off as a separate public company.[13] However, instead Ogden sold its entertainment and aviation businesses to focus on energy and environmental services.[12][14][15] Its theme and water parks were sold to Alfa Holdings for $148 million.[14] Its concessions, food, uniform, and child-care interests were sold to Aramark Corporation for $225 million.[14]

Covanta

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In 2001, Ogden's name was changed to Covanta to represent its focus on energy.[3][16][17] Covanta and its 155 subsidiaries filed for bankruptcy in 2002.[3] The bankruptcy was prompted by the California electricity crisis and the economic downturn following the September 11 attacks.[3]

In 2004, Anthony Orlando was appointed CEO.[18] That same year, 20 banks agreed to provide $463 million in financing to help the company get out of bankruptcy, restructure, and sell itself.[16] Covanta came out of bankruptcy in 2004, when it was purchased by Danielson Holding Corporation.[3] In 2005, Danielson sold Ogden's interests in casinos, hockey stadiums, and other areas to focus on its energy-from-waste business.[3] Later that year, Covanta acquired a energy-from-waste business called American Ref-Fuel for $2 billion.[3]

In 2009, Covanta bought the energy-from-waste business of Veolia Environment for $450 million.[19] This was followed by acquisitions of environmental services companies Advanced Waste Services and GARCO for undisclosed sums in 2014.[20][21]

In 2015, Covanta appointed Stephen J. Jones as its new CEO.[22]

Operations

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Covanta develops and operates facilities that burn trash to produce electricity, recover metals from the waste stream for recycling and provide other industrial waste management services.[23] As of 2013, about 60% of Covanta's revenue came from selling trash disposal services and 25% from selling electricity produced by burning it.[24] The remainder of its revenue is from metal recycling, construction, and other services.[24]

As of 2018, Covanta operates about 42 waste-to-energy plants in North America, China, and Europe.[25][26] Covanta burns 20 million tons of trash annually and recycles 550,000 tons of metal.[23] Most of Covanta's revenue comes from long-term contracts with local governments or utility providers.[25][27] It also benefits from tax incentives for green energy projects.[6]

A majority of the trash Covanta burns is organic substances.[28] It also burns a smaller amount of pharmaceutical byproducts, like expired medicines.[29] Each ton of garbage contains about 50 pounds of metal that is removed with magnets, then sold for recycling.[30]

At its plants, Covanta feeds trash into a furnace burning at 1,800 degrees Fahrenheit.[30] The furnace produces steam that rotates a turbine, powering a generator.[30] The remaining ash is rapidly cooled to prevent the formation of toxic compounds, then goes through additional processing.[30] Government agencies regulate and monitor Covanta emission stacks for harmful toxins.[31] Filters and other equipment attempt to remove most of the harmful particulates[25] and activated carbon removes most of the mercury.[31] Steam is released into the atmosphere.[25]

Environmental and social impact

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Covanta supporters say burning trash to produce energy is an environmentally-friendly way to produce power and dispose of garbage that would otherwise fill landfills.[32] Environmental critics on the other hand are concerned about mercury, lead, and other toxins produced from burning garbage.[33][31] Covanta simultaneously receives awards for its positive impact on the environment, while being sued and protested for the opposite.[3]

A 2008 study by the U.S. Environmental Protection Agency found that waste-to-energy plants were better for the environment than landfills, in part because they reduce the methane garbage produced in landfills and reduce reliance on other fuels like coal.[33] A study by Columbia University said if waste-to-energy was as popular in the United States as it is in Europe, the U.S. would reduce carbon emissions by 264 million tons annually.[25] However, many environmentalists are skeptical about Covanta's claim that the steam emitted from a plant's furnace does not contain excess toxins.[25] Some environmentalist distrust government monitoring of Covanta's emission stacks and lobby for more regulation.[31]

Additionally, Covanta has been cited numerous times for exceeding air pollution standards.[15] One Covanta plant in Newark was cited for violating emission standards.[34] In 2010, the lawsuit was settled for $875,000, which was used for a local green space program.[35] Similar problems have led to fines and settlements for mercury emissions in Florida,[36] dioxin in Connecticut,[37] and for hydrated lime in Dublin, Ireland.[38]

An academic from Columbia University said most energy-from-waste emission criticisms are related to dated technology or misinformation.[25] Covanta said its facilities are compliant with emission standards 99.9% of the time.[34]

In 2014, there was a controversy about whether an Oregon Covanta facility was burning aborted fetuses and other human body parts as part of its medical waste.[39] Covanta said its plant never received aborted fetuses as fuel.[40] Covanta works with local governments to safely dispose of prescription drugs.[41][42]

References

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  1. ^ a b c d e f g h "Covanta 2018 10-K". SEC.gov. February 8, 2019. Retrieved September 12, 2019.
  2. ^ "Covanta Holding: A Brief Introduction". Market Realist. June 29, 2015. Retrieved December 3, 2019.
  3. ^ a b c d e f g h i "Company seeking to build trash port is trying new type of venture". The Virginia Pilot. October 9, 2006. Retrieved September 15, 2019.
  4. ^ a b c d Covanta Energy. Vol. 64. St. James Press. 2004. {{cite book}}: |work= ignored (help)
  5. ^ a b "Bright Outlook at Ogden Keyed to Diversification". Barron’s. May 29, 1967. p. 23.
  6. ^ a b c d e f Cuff, Daniel (January 26, 1986). "So long, Smokestacks". The New York Times. Retrieved September 15, 2019.
  7. ^ Dumaine, Brian (August 2, 2010). "Warren Buffett's Mr. Fix-It: Full Version". David Sokol: Warren Buffett's Mr. Fix-It. Retrieved November 6, 2019.
  8. ^ a b Cochran, Thomas (November 28, 1988). "Mutual Choice: Cleaning up with Ogden". Barron’s. p. 44.
  9. ^ Sheldon, Andrew (March 28, 2016). "At Eco-Friendly Covanta Nothing Goes to Waste". NJBIZ. Vol. 29, no. 13.
  10. ^ a b c Auerbach, Jonathan (November 10, 1995). "Ogden Corp. Plans Divestitures; Move to Cause Charge". The Wall Street Journal. p. B10.
  11. ^ a b Hinden, Stan (January 14, 1991). "Ogden Moving Ahead with Purchase of Eric Environmental". Washington Post. Retrieved September 15, 2019.
  12. ^ a b Welsh, Jonathan (September 20, 1999). "Ogden Announces Change in Strategy, CEO's Resignation, Earnings Shortfall". The Wall Street Journal. p. B9.
  13. ^ "Ogden to Break Up Three Businesses Into Two Publicly Traded Companies". WSJ. March 12, 1999. Retrieved September 15, 2019.
  14. ^ a b c "Ogden Agrees to Sell Concessions Business to Aramark". The New York Times. March 31, 2000. Retrieved September 15, 2019.
  15. ^ a b Strauss, Eric (August 19, 2008). "Covanta's waste-burning plants are controversial, but seen as energy solution". nj.com. Retrieved September 12, 2019.
  16. ^ a b "Covanta Energy Files for Chap. 11". Los Angeles Times. April 2, 2002. Retrieved September 14, 2019.
  17. ^ Kadleck, Chrissy (June 21, 2010). "Energy refocus was key move for Covanta". The Barron's.
  18. ^ Calia, Michael (January 5, 2015). "Former Air Products Executive to Become Covanta CEO". WSJ. Retrieved November 6, 2019.
  19. ^ Roychoudhury, Arup (July 6, 2009). "Covanta to buy facilities from Veolia subsidiary". U.S. Retrieved October 15, 2019.
  20. ^ "Waste-to-Energy Firm Covanta Buys Advanced Waste". Waste360. May 22, 2015. Retrieved October 16, 2019.
  21. ^ Bollinger, Luke (March 22, 2018). "Triad environmental firm to expand with new facilities and jobs". Triad Business Journal. Retrieved October 15, 2019.
  22. ^ Kraus, Scott (January 5, 2015). "Covanta appoints former Air Products exec its new CEO". mcall.com. Retrieved September 14, 2019.
  23. ^ a b "Covanta: Anything But A Waste (Of Time)". Seeking Alpha. July 30, 2018. Retrieved September 14, 2019.
  24. ^ a b Englander, David (November 2, 2013). "No Need to Hold Your Nose!". Barron's. Retrieved September 14, 2019.
  25. ^ a b c d e f g Kilgore, Tomi; Linnane, Ciara (April 20, 2018). "Covanta's green tech is a hit in Europe - is the U.S. next?". MarketWatch. Retrieved September 14, 2019.
  26. ^ Meeks, Karen Robes (September 30, 2013). "Terminal Island plant converts solid waste to energy for Long Beach residents". Press Telegram. Retrieved September 14, 2019.
  27. ^ Englander, David (May 2, 2015). "Covanta Turns Trash to Cash". Barron's. Retrieved September 14, 2019.
  28. ^ Wald, Matthew L. (February 19, 2008). "For Carbon Emissions, a Goal of Less Than Zero". The New York Times. Retrieved September 13, 2019.
  29. ^ Smith, Aaron (August 27, 2007). "Stericycle, Covanta burn drugs for money". CNN. Retrieved September 13, 2019.
  30. ^ a b c d Sullivan, Vince (August 17, 2014). "Covanta and waste by rail: Here's the plan". The Daily Times.
  31. ^ a b c d Knauss, Tim (November 20, 2009). "Mercury discharges drastically lower as Onondaga County's trash-to-energy plant owner asks NY to renew permit". syracuse.com. Retrieved September 13, 2019.
  32. ^ "Covanta Energy Under Fire Over Substance Raining Down On Long Island". CBS New York. February 19, 2014. Retrieved September 14, 2019.
  33. ^ a b Yehle, Emily (July 8, 2013). "SOLID WASTE: Congress fuels debate over burning trash for energy". E&E News. Retrieved September 14, 2019.
  34. ^ a b Murray, Brian (December 6, 2009). "Newark residents say garbage incinerator poses health risks". nj.com. Retrieved September 14, 2019.
  35. ^ Johnson, Tom (June 7, 2019). "Energy-from-Waste Facility Agrees to Clean Up its Act". NJ Spotlight. Retrieved September 14, 2019.
  36. ^ Connolly, Kevin P. (June 23, 2001). "Incinterator, State Strike a Deal". The Orlando Sentinel. Retrieved September 15, 2019.
  37. ^ Nearing, Brian (August 12, 2011). "Covanta, seeking N.Y. renewable nod, pays $400,000 dioxin fine at Conn. trash-burn plant". Times Union. Retrieved September 15, 2019.
  38. ^ Burns, Sarah; Power, Jack (March 21, 2013). "Eleven hospitalised after incident at Dublin's Poolbeg incinerator". The Irish Times. Retrieved September 15, 2019.
  39. ^ "Is fetal tissue from B.C. used to power Oregon homes?". The Associated Press. April 24, 2014. Retrieved September 14, 2019.
  40. ^ Francke, Tyler. "Covanta: 'We're not burning babies'". Pamplin Media Group. Retrieved December 3, 2019.
  41. ^ Ryburn, Stacy (January 16, 2016). "OBN, Covanta reach 100,000 milestone in disposal of prescription drugs". Tulsa World.
  42. ^ "Covanta partners with New York for pharmaceutical take-back program". Waste Dive. April 19, 2018. Retrieved December 3, 2019.
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