Fairfield, N.J.-based Covanta Holding Corp. has agreed to purchase a 40 percent stake in China's Chongqing Sanfeng Environmental Industry Co., a subsidiary of Chongqing Iron & Steel (Group) Ltd. Sanfeng holds minority interests in two waste-to-energy facilities in the municipalities of Chongqing and Fuzhou.

China generates an estimated 280 million tons of municipal solid waste annually, most of which is currently being landfilled. The Chinese Ministry of Construction has outlined a plan to increase the amount of MSW used for waste-to-energy to 30 percent by 2030.

“We are very excited about our new partnership with Chongqing Iron & Steel and about Sanfeng as a solid platform for growth in this dynamic market,” said Anthony Orlando, president and CEO of Covanta.

Financial terms of the transaction were not disclosed.