Image courtesy of Covanta
EQT Infrastructure has announced plans to carve out Covanta’s European operations from Covanta Holding Corp., London, creating a standalone waste-to-energy platform called Covanta Europe. The European platform will own and operate waste-to-energy facilities, including three operational facilities and three in construction in the UK, Ireland and Italy.
EQT says the separation of Covanta and Covanta Europe is a key step to unlock significant growth potential and enable further value creation across both platforms. The new structure will allow management to focus on leveraging local insights, experiences and operational capabilities to accelerate as leading sustainable providers of waste and materials management services in their respective markets.
EQT Infrastructure, which acquired Covanta Holding Corp. in 2021, will retain its ownership of Covanta Europe and continue to support the business in its next growth phase. Under the new structure, the company will leverage EQT's global reach and expertise in the market. Both Covanta Europe and Covanta will benefit from increased flexibility to pursue value-enhancing opportunities unique to their respective geographies and strategic priorities.
The standalone platform in Europe will be led by its current President and CEO, Owen Michaelson. The company says he will be supported by a new board of directors chaired by Philip Nolan. As chairperson, Nolan brings extensive experience on the boards of various public and private companies. He is currently chairperson of Associated British Ports, a UK ports group, and most recently as chairperson of John Laing, Ulster Bank Limited and Affinity Water.
"Building on this positive momentum and the successful handover of the Rookery South Energy Recovery Facility, safely delivered on time and on budget despite the challenging conditions resulting from COVID-19, we continue to see great opportunity in Europe with several sites in construction and more sustainable development ahead,” says Michaelson.
Covanta Europe has three operating facilities and three facilities in construction:
Operational:
Dublin Waste-to-Energy, Dublin;
Rookery South Energy Recovery Facility, Bedford, United Kingdom; and,
Trezzo sull'Adda, Milan.
In Construction:
Newhurst Energy Recovery Facility, Leicestershire, United Kingdom;
Protos Energy Recovery Facility, Cheshire, United Kingdom; and,
Earls Gate Energy Centre, Grangemouth, United Kingdom.
This announcement follows EQT's acquisition in February of the Green Investment Group's 50 percent stake in a joint venture with Covanta Europe across four facilities in the UK.
"The division of Covanta into two exclusive geographical sets presents us with an incredible opportunity to focus on market growth in the respective regions," says Azeez Mohammed, president and CEO of Covanta North America. "In North America, we now look ahead to expanding our new sustainable waste solution service offerings and enhanced operations of our assets, such as metals recovery and Covanta Environmental Solution business lines."
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