The Rutland, Vt.-based Casella said in a news release that it has sold the waste-to-energy facility to the Maine city of Biddeford for $6.65 million over 20 years. The Biddeford city council also accepted 10-year waste handling and recycling collection agreements.
The sale is set to close Nov. 15. Among the pending conditions of the agreement is Casella receiving a final permit modification at the Juniper Ridge Landfill in Old Town, Maine, to accept municipal solid waste (MSW). Currently, the landfill may only accept MSW as a bypass stream from waste-to-energy facilities.
The facility’s future with Casella has been uncertain and impacted its financial results. In the company’s recent fourth quarter results it took a $40.7 million non-cash asset impairment charge, mostly related to the potential sale of the MERC operation.
"With the signing of this purchase and sale agreement I believe that we have reached a win-win outcome for both the company and the city of Biddeford," said John Casella, chairman and CEO of Casella Waste. "Biddeford had approached us several times over the past ten years to find a solution to shut down the 25-year old waste-to-energy facility to redevelop their downtown area. Given current low energy prices and our belief that a successful resource management strategy combines waste reduction, an effective recycling solution and waste disposal in a low-emission landfill, we have structured a transaction that is favorable for our shareholders, while helping the community to meet its long-term solid waste objectives.”