Covanta ‘economically dispatches’ bioenergy facilities
April 29, 2016 – The announcement of the first quarter financial results included a few points noting the ‘economic dispatch’ of Covanta Holding Corporation’s biomass facilities.
From the release: “Energy revenue from non-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 U.S., combined with anabundance 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.