Transcript Document

Energy-from-Waste … part of the solution
October 1, 2008
About Covanta
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Covanta Overview
• Covanta is the world’s largest Energy-from-Waste
company
– Operate in 8 countries and 15 states throughout the
U.S.
– Headquarters in Fairfield, New Jersey
– More than 3,000 employees worldwide
• Provider of long-term renewable energy and
environmentally safe waste disposal
– Recipient of numerous state and federal awards for
safety and environmental excellence
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Financial Strength
• NYSE Company (CVA)
Covanta Market Capitalization
($Billion)
$4.3
• Enterprise value exceeds $6 billion
$3.3
• Revenue exceeds $1.4 billion
• 2008 Financial Guidance(1)
●
$550 - 575 million adjusted EBITDA
●
$380 - 420 million cash flow from operations
$2.2
$0.6
1/1/05
1/1/06
1/1/07
1/1/08
(1) As of April 24, 2008. This information is not being reaffirmed or updated
as of the current date.
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Energy from Waste - Vital roll in U.S.
Renewable Energy and Waste Management
Annual U.S Renewable Generation =
87,213,000 megawatt hrs
Energyfrom-Waste
18%
Wood &
Other
Biomass
44%
Solar
1%
Wind
20%
Geothermal
17%
Source: US Department of Energy, Energy Information
Administration 2005 Report
Annual U.S Waste Generation =
388,000,000 Tons
Recycling
26%
Landfill
66%
Energyfrom-Waste
8%
Source: 2004 Joint Study by Biocycle and Earth
Engineering Center of Columbia University
•
Covanta owns and/or operates 38 Energy from Waste facilities and 6 biomass
to electric facilities with many more in planning and development
•
Covanta produces almost 10% of America’s non-hydro renewable electricity –
enough to power over a million homes
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Covanta converts over 5% of the nation’s post-recycled waste into energy
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Covanta’s Consistent Performance
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Environmental Health and Safety Programs
• 24 Facilities in OSHA’s elite
VPP STAR Program
– Covanta’s Alexandria facility received the VPP STAR award and our
Fairfax facility has been recommended for the VPP STAR as well.
• Environmental Leadership
– 23 EPA performance track facilities
– First to install mercury control
– New patented low NOx technology
– Numerous industry, environmental,
and community awards
• Virginia Environmental Excellence
• Sustainable Florida Leadership
• Michigan Clean Corporate Citizen
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About Energy from Waste (EfW)
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Clean Energy from Waste
EfW is a specially designed energy generation facility that uses household waste as fuel.
Waste is combusted to produce valuable energy and help solve some of society’s big challenges
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Population growth
Safe, reliable waste disposal
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Climate change
Reduces greenhouse gas emissions
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Dependence on fossil fuels
Clean, renewable electricity 24/7
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Resource management
Recover metal for recycling
Municipal Solid Waste
(MSW): 2000 lbs
Power: 560 kWh
Metal: 50 lbs
Ash: 10% of original volume
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Typical EfW Facility Layout
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EfW roll in Global Waste Management
EfW 0.2 billion tons
Recycling 0.5 billion tons
Landfill
Landfill 1.0 billion tons
Recycling/
Composting
U.S.
~ 90 EfW facilities
~ 30 million TPY
Western Europe
Asia
~ 400 EfW facilities
~ 65 million TPY
~ 325 EfW facilities
~ 55 million TPY
China
Singapore
Taiwan
Japan
Ireland
U.K.
Italy
Average
Germany
Sweden
Denmark
U.S.
EfW
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Covanta in Virginia
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COVANTA FAIRFAX – Partnership/ Business Model
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The I/95 Energy/Resource Recovery Facility in Fairfax
County
• Began commercial operation in 1990
• Processes approximately 3,000 tons
of MSW each day while producing
more than 90 megawatts of renewable
energy
• Service Agreement Deal – Client
delivers waste and pays Covanta an
O&M fee to operate the facility
• In 2000, completed CAAA retrofit of the facility to lower emission and
meet new Federally enforced air emission guidelines
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The I/95 Energy/Resource Recovery Facility in Fairfax
County
• All debt is paid off in 2011.
• The facility provides 13.7% of
Virginia’s Renewable Power (22%
excluding Hydro).
• Since 1990, the facility has:
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Produced 10 million MWhs for the region—
enough to power 75,000 homes each year
Safely disposed of approximately 19M tons of MSW, avoiding the use of
19M barrels of oil
Recycled 375,000 tons of Ferrous metal and 3,500 tons of Non-Ferrous
metals
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The Alexandria/Arlington Resource Recovery
Facility
• Began commercial operation in 1988
• Processes 975 tons of MSW a day
while generating up to 23 megawatts
of renewable energy
• Tip Fee Deal – Client pays a tip fee
($/ton) on all jurisdiction tonnage
(2/3 of plant volume)
• In 2000, Covanta completed a $40M CAAA retrofit of the
facility to lower emission and meet new Federally
enforced air emission guidelines
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The Alexandria/Arlington Resource Recovery
Facility
• In 2007, installed a new ferrous
separation system for metal recycling
• All debt is paid off in 2013
• Provides enough energy to power
20,000 homes each year
• Since 1988, the facility has:
– Produced 4 million MWhs for the region- enough to power
20,000 homes each year
– Safely disposed of approximately 7,000,000 tons of MSW, avoiding the
use of 7,000,000 Barrels of oil
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Alexandria Upgrade Stellar Emission Results
Actual vs. Allowable Emissions
Permit
Limit/Unit
2004 – 2006
Actual Results
% Below
Limit
Particulate (mg/dscm)
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1.9812/Unit (avg)
92.7%
Dioxin/Furan (ng/dscm)
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1.1466/Unit (avg)
96.2%
Mercury (mg/dscm)
0.080
0.0006/Unit (avg)
99.3%
Lead (mg/dscm)
0.44
0.0061/Unit (avg)
98.7%
Cadmium (mg/dscm)
0.040
0.0002/Unit (avg)
99.5%
SO2 (ppm)
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1.78/Unit (avg)
93.9%
HCl (ppm)
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1.08/Unit (avg)
96.3%
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EfW - Benefits to the Local VA Host Communities
• Long Term Stable Waste Disposal Pricing
• Clean Renewable Power – Less Demand for Fossil Fuel Power (Oil
& Coal)
• Recycling:
– Recycling Credits: Ferrous and Non-Ferrous Metals Recovery
– NOx Credits
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Reduces - Landfill Usage and Greenhouse Gases
Minimize Truck Traffic
Community Relations Programs / Charitable Contributions
Provides Local Employment – approximately 135 jobs
More than $3M spent on local businesses annually
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Recycling Rates
• EfW plants work together with
community’s recycling program.
– Fairfax County - 35%
– Alexandria - 29% (5% inc. in 07 – Fe Metal)
– Arlington - 42.7%
– Commonwealth of Virginia – 32.2%*
* 2005 data
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EfW Regulatory & Policy Landscape
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The Best Option After Recycling—Energy-from-Waste
Landfills
Renewable energy generated from
landfills - 6 billion kWh
250 million
tons of
garbage
dumped in
landfills
A misuse of valuable land; generates
methane gas – a leading contributor to
global warming; inefficient energy recovery
Energy-from-Waste
30 million
tons of
garbage is
processed into
renewable
energy
Renewable energy generated from
EfW facilities - 15 billion kWh
Preserves land; offsets greenhouse gases;
provides energy recovery five times greater
than landfill gas to energy
For every ton of waste processed in an Energy-from-Waste facility, we offset
one ton of carbon dioxide equivalent by reducing the amount of methane generated by landfills
and decreasing our dependence on fossil fuels.
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Environmental Benefits of Energy-from-Waste
One solution helps address 3 challenges
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Adopting environmentally sustainable waste disposal practices
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EfW is the most attractive, sustainable solution for waste disposal after recycling
Generating clean energy from renewable fuels
– U.S. Environmental Protection Agency states EfW “produces electricity with less
environmental impact than almost any other source”
– Baseload power – 24 hours a day, 7 days a week
– EfW can be important contributor to overall renewable portfolio
• Potential to produce about 5% of U.S. electricity needs
• Home grown electricity benefits energy security
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Reducing greenhouse gas emissions to combat global warming
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Offsets up to one ton of carbon dioxide equivalent for each ton of waste processed
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Reduces need for landfills, which generate methane, a potent greenhouse gas
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Reduces dependence on fossil fuel power: one ton of waste ~ ¼ ton of coal
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EfW Regulatory & Policy Landscape
United States
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Recognized as renewable in 23 states and current Federal policy
Federal legislation – outcome uncertain
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Renewable electricity tax credits currently included – likely extension
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Renewable Portfolio Standard (RPS) and Climate Change being debated
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Whether or not EfW should benefit from these policies is specifically being debated
Europe
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EU Landfill Directive –
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65% reduction in landfilling of biodegradable Municipal Solid Waste
Significant Landfill taxes & other incentives to recycle and recover energy
Not subject to CO2 emission caps
China
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Preferential electricity tariff
Target 30% EfW by 2030
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Global Growth Opportunity in Energy-from-Waste
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One billion tons/yr of waste buried in landfills  EfW Opportunity
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U.S. and Canada
– EfW re-emerging with higher fossil fuel prices
– Pending regulation on renewable energy and climate change will be the driver
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Europe
– EU Landfill Directive – significant impact on the U.K. in particular
– Increasing demand for renewable power generation
– Significant focus on Climate Change
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China
– Growing middle class and urbanization – increasing waste generation
– Land at a premium, making landfills less attractive
– Regulatory incentives for renewable power generation benefit EfW
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Thank You
Paul E. Stauder
Senior Vice President
Covanta America
[email protected]
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