Date: June 30, 2008
Source: News Room
Detroit Mayor Kwame Kilpatrick said that the city will not buy the waste-to-energy plant which has processed nearly two thirds of the city's 550,000 tons of waste per year since it was built in 1991. That decision follows last month's decision not to renew its lease with Covanta Energy which operates the plant. Instead, the city seems to favor increased recycling efforts and landfill disposal. However, there are many obstacles, not the least of which is the high cost of deploying recycling programs in a city that is only recycling an estimated 8% of its waste stream. Also, a contract provision exists that says the plant owner, Energy Investors Funds of Boston, which bought a majority interest in it this year, can require waste be brought to the plant if it can match or beat bids from local landfill operators. The rising cost of landfill disposal together with high fuel costs to transport waste there tips the balance in favor of the waste-to-energy plant.
For more information, visit: www.covantaholding.com/site/locations/covanta-michigan.html.
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