EQT completes acquisition of Covanta

By Erin Voegele | November 30, 2021

Covanta Holding Corp. on Nov. 30 announced the completion of its $5.3 billion acquisition by the EQT Infrastructure V fund and released a new sustainability report that includes an overview of 2020 achievements.

Covanta first announced the planned acquisition by EQT in July. Shareholders approved the transaction in October.

As part of the Nov. 30 acquisition announcement, Covanta reported that Azeez Mohammed has been named president and CEO. “I am excited to lead Covanta during this very transformational time,” Mohammed said. “Covanta has been a mainstay in the industry due to its talented team with deep domain experience in the sustainable waste disposal space, robust portfolio of sustainable negative-carbon Waste-to-Energy assets, and growth platform in Covanta Environmental Solutions that provides premium disposal and recycling solutions to broader industrial wastes. Coupled with society’s growing momentum toward decarbonization and pursuit of circular alternatives for managing waste, this creates a compelling value creation story. I look forward to working with our talented team, stellar board, and a growth and sustainable-minded owner in EQT to capitalize on our potential that ensures the preservation of our planet for future generations.”

Following the acquisition, EQT said it plans to build on Covanta’s strong foundation in the waste to energy (WTE) industry by increasing investments across the business to leverage its existing asset base to move higher up the waste value chain by further incorporating recycling, beneficial reuse and other forms of sustainable waste disposal into its service offering. This includes building materials and energy feedstocks. The company also plans to upgrade equipment at existing plants to reduce emissions and invest in host communities, including vocational training programs and environmental undertakings.

In its sustainability report, Covanta reported that the company diverted 21.2 million tons of waste away from landfills in 2020 and converted it to energy. The company reduced greenhouse gas (GHG) emissions by 18.8 million tons during the year, equivalent to taking nearly 4 million cars off the road, and made progress on the development of four new WTE projects in the U.K.

“Covanta’s progress, even during the disruptions and uncertainty of the pandemic, underscored our mission to protecting tomorrow, the core tenet of our sustainability pledge,” Mohammed said. “As we forge ahead, we cannot forget the lessons or take for granted the growing value of sustainable strategies and services have for our communities. Waste-to-energy facilities play an important role in these efforts as they are the only form of energy generation that reduces greenhouse gases and address climate change by avoiding the production of methane from landfills.”

A full copy of the sustainability report can be downloaded from Covanta’s website