The facility will provide a sustainable waste solution to the county and nearby jurisdictions.

Waste360 Staff, Staff

December 13, 2019

2 Min Read
Covanta to Build EfW Facility in China’s Zhao County
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Covanta Holding Corporation announced the signing of a concession agreement with Zhao County, China, for the construction and operation of a new energy-from-waste (EfW) facility. The facility will provide a sustainable waste solution to the county and nearby jurisdictions. The project is being jointly developed by Covanta and a strategic local partner.

“I am excited to announce our participation in the Zhao County EfW project and Covanta’s return to the Chinese market,” said Stephen Jones, Covanta’s president and CEO, in a statement. “As a global leader in sustainable waste solutions, we look to leverage our capabilities in attractive markets that meet our investment criteria, and no market in the world offers a greater opportunity for EfW growth than China.”

China has established very ambitious sustainable waste treatment and landfill avoidance goals. Its 13th Five-Year Plan calls for approximately 600,000 tonnes per day of EfW capacity by the end of 2020—a doubling of the installed capacity as of the end of 2015. China’s EfW capacity targets are supported by a preferential tariff on the purchase of electricity from EfW facilities and other beneficial regulations that prioritize development of EfW infrastructure. In light of these policies, more than 200 new EfW facilities are expected to be built between 2020 and 2030.

“Zhao County is a well-developed project, offering attractive returns and providing a great opportunity to re-enter a market where we have a successful historical track record,” continued Jones. “We expect to pursue additional projects in this robust and dynamic market that meet our target return and risk criteria, and Zhao County gives us a strong foundation to build on.”

Additional project details:

  • Located in Zhao County, a subdistrict of the Hebei provincial capital city of Shijiazhuang, approximately 200 miles south of Beijing

  • 30-year concession agreement guarantees waste supply under a build-own-operate-transfer structure

  • 1,200-tonnes-per-day waste processing capacity with potential for expansion

  • Facility construction to be project financed, with total capital cost of approximately $100 million USD-equivalent

  • Covanta will be a project equity partner and will provide construction oversight services

  • Engineering, procurement and construction to be performed by a leading Chinese multinational construction contractor

  • Construction is expected to begin in early 2020 with completion in less than two years

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