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The facility handles all the residential garbage for the city of Minneapolis.
August 22, 2016
1 Min Read
Covanta Energy Corp. has operated the Hennepin Energy Recovery Center (HERC) in Minneapolis for decades, but locally-based Great River Energy is making a bid to replace them.
The facility handles all the residential garbage for the city of Minneapolis, burning up to 1,000 tons of trash a day. Covanta earns about $1 million per month operating the facility.
The Minneapolis/St. Paul Business Journal has more:
When Hennepin County bought the facility in the early 1990s, it inherited a contract with Covanta that allows the company to match a competitor's offer. Covanta's original contract runs through March of 2018. Contract extension negotiations began roughly two years ago to no avail, so the county put the work out to bid and preliminarily selected Great River Energy.
A Hennepin County committee approved the bid Tuesday. It will go before the full Hennepin County Board of Commissioners next week. If it passes, Covanta has 30 days to keep the contract if it accepts the terms negotiated by Great River Energy.
"It is surprising to us that after providing what we believe to be fair market-based proposals, that the county would choose a vendor without experience operating the technology employed at the HERC," Covanta Director of Communications and Media Relations James Regan said.
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