Covanta confirms shutdown of biomass plants
Covanta, a US waste management firm, has announced that the company’s biomass assets have been idled and this has negatively impacted on its first quarter revenue results for its energy division.
In a statement, Covanta said: “Energy revenue from non-energy-from-waste (EfW) operations decreased by $13 million, primarily driven by an $11 million decrease in biomass revenue as a result of economically dispatching facilities and lower market pricing.”
The economic dispatch of these facilities is a result of warm weather conditions in the northeast US, combined with an abundance of low-cost natural gas. There is no word yet from the company as to the future for these facilities.
In January, Covanta announced that it was closing both of its bioenergy plants in central Maine. A few weeks ago, government officials approved a $13 million bailout of the bioenergy industry in the state, allowing the state to buy bioenergy at above market value in order to support the struggling industry.