Covanta Holding Corporation is a private energy-from-waste and industrial waste management services company headquartered in
Morristown, New Jersey
Morristown () is a town and the county seat of Morris County, in the U.S. state of New Jersey. ...
. Most of its revenue comes from operating power plants that burn trash as fuel. Covanta charges a fee for waste disposal, sells electricity produced in the process, and recovers metal for recycling.
Covanta was founded in 1939 as the Ogden Corporation. After starting as a public utility
holding company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
it became a diverse conglomerate which had holdings in manufacturing, horse racing, real estate, food, maritime transportation, arena management, and entertainment until its 2001 restructuring into a strictly energy business.
Early history
In 1939, Ogden Corporation was founded as a successor to Utilities Power and Light, a
Chicago
(''City in a Garden''); I Will
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-based utilities holding company that had been under a court-ordered trusteeship since 1937. Its subsidiaries included the
Laclede Gas Company Laclede Gas Company is the largest natural gas distribution utility in Missouri, serving about 632,000 residential, commercial and industrial customers in the city of St. Louis and ten counties in eastern Missouri. As an adjunct to its gas distrib ...
, Interstate Power Company, Missouri Natural Gas Company, Missouri Electric Power Company, Central State Utilities Corporation, and Central States Power and Light Corporation. The
Atlas Corporation
The Atlas Corporation is an American investment firm that was formed in 1928. Atlas invested in and managed a number of major US companies during the 20th century and has a number of investments in natural resources.
History
Atlas corporation wa ...
controlled the Ogden Corporation from its founding until it was sold to the Allen family in 1951. Benjamin G. Brewster, general auditor for the Atlas Corporation, served as Ogden's first president. He was succeeded by Maurice L. Sindeband.
As part of the reorganization of the Utilities Power and Light, Ogden was obligated to divest its utility interests so that it would comply with the
Public Utility Holding Company Act of 1935
The Public Utility Holding Company Act of 1935 (PUHCA), also known as the Wheeler-Rayburn Act, was a US federal law giving the Securities and Exchange Commission authority to regulate, license, and break up electric utility holding companies. It l ...
. By 1948, Ogden's only remaining utility holding was the Interstate Power Company.
Diversified interests
Manufacturing
In 1953, Ogden entered the manufacturing field when it acquired W.A. Case & Son Manufacturing Company, a manufacturer and distributor of plumbing and heating supplies, from Allen & Company. That same year the company purchased Teleregister from
Western Union
The Western Union Company is an American multinational financial services company, headquartered in Denver, Colorado.
Founded in 1851 as the New York and Mississippi Valley Printing Telegraph Company in Rochester, New York, the company chang ...
. In 1955, Ogden purchased Commercial Filters Corporation, an electronics and plumbing firm, and Luria Brothers & Co., an iron and steel scrap business. In 1957 the company purchased the Eimco Corporation and the American Foundry & Machine Company of
Salt Lake City
Salt Lake City (often shortened to Salt Lake and abbreviated as SLC) is the Capital (political), capital and List of cities and towns in Utah, most populous city of Utah, United States. It is the county seat, seat of Salt Lake County, Utah, Sal ...
. Eimco manufactured filtration equipment and American Foundry & Machine made iron and steel castings. In 1959, Ogden acquired Avondale Marine Ways Inc., a
New Orleans
New Orleans ( , ,New Orleans Merriam-Webster. ; french: La Nouvelle-Orléans , es, Nuev ...
shipbuilding company.
In 1962, former Luria Brothers president Ralph E. Ablon became president and chairman of Ogden.
Foods
In 1966, Ogden acquired Tillie Lewis Foods, a California-based fruit and vegetable canner.
Tillie Lewis
Tillie Ehrlich-Weisberg Lewis (born Myrtle Ehrlich; July 13, 1901 - April 30, 1977), was a highly successful entrepreneur and leader in the mid 20th century food packing industry. She was an early promoter of the Italian San Marzano tomato to the ...
was appointed to Ogden’s board of directors, becoming the company’s first female director. The following year, Ogden entered the frozen food business when it purchased Prosser Packers of
Prosser, Washington
Prosser () is a city in and the county seat of Benton County, Washington, United States. Situated along the Yakima River, it had a population of 5,714 at the 2010 census.
History
Prosser was long home to Native Americans who lived and fished ...
. That same year it purchased ABC Consolidated, a food and refreshment firm that owned cafeterias, restaurants, snack bars, and the
Nedick's
Nedick's was an American chain of fast-food restaurants that originated in New York City in 1913."Title to Nedick's Will Pass Today: Orange-Drink Chain That Took In $10,000,000 in 7 Good Years to Be Continued", ''The New York Times'', April 13, 19 ...
fast food chain. Ogden's food division became one of the three biggest arena concession vendors in the United States. In 1968, Ogden purchased Mack Brothers, a company that manufactured frozen meats for airlines. In 1979, Ogden bought
Progresso
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Progresso, a brand of General Mills, is an American food company that produces canned soups, canned beans, broths, Chili con carne, chili, and other food products.
History ...
for $35 million. In 1986 Ogden Foods was sold to Pet, Inc. for $320 million.
Real estate development
In 1968, Ogden formed the Ogden Development Corporation after it purchased
Charles Luckman
Charles Luckman (May 16, 1909 – January 26, 1999) was an American businessman, property developer, and architect known for designing landmark buildings in the United States such as the Theme Building, Prudential Tower, Madison Square Garden, ...
Associates, a real estate, engineering, and architectural firm. Luckman was named president of Ogden Development.
Maritime transportation
In 1968, Ogden acquired Soros Associates, which designed and developed bulk handling and port facilities. That same year it purchased Bulk Transport Inc., which operated 18 bulk carriers. In 1979 Ogden purchased two 37,800-ton tankers from United Tanker Corporation for $31 million.
Waterford Park
Mountaineer Casino, Racetrack and Resort is a thoroughbred racetrack and casino resort located on the Ohio River north of New Cumberland, West Virginia. It is owned by Vici Properties and operated by Century Casinos. It is notable for being the ...
,
Scarborough Downs Scarborough Downs Race Track was a horse-racing track located in Scarborough, Maine, United States. It was Maine's largest race track. It was home to The Downs Club restaurant as well as a grandstand for race viewing, and includes 2 track-side lou ...
, Fairmount Park, and Wheeling Downs. In 1972 the company purchased Suffolk Downs. Ogden Recreation formed a security subsidiary, Ogden Security, which was headed by former Boston Police Commissioner
Edmund McNamara
Edmund Leo McNamara (1920-2000) was an American law enforcement officer and professional football player who served as commissioner of the Boston Police Department.
Early life
McNamara was born on April 13, 1920 in Boston. He grew up in Clinton, ...
.
Shift from manufacturing to services
In the 1980s, Ogden shifted from primarily a manufacturing business to a services company. Its first investment in the services industry was the $118 million acquisition of Allied Maintenance Corporation in 1982. Ogden undertook 19 acquisitions and mergers between 1983 to 1991. In 1986 Suffolk Downs was sold to
Buddy LeRoux
Edward Guy "Buddy" LeRoux Jr. (August 17, 1930 – January 7, 2008) was an American businessman, best known for his time as a general partner of the Boston Red Sox from May 1978 through March 1987.
Early life
A native of Woburn, Massachusett ...
. By 1987, substantially all of Ogden's revenues were from services it didn't previously provide, like warehousing, running concession stands at stadiums, and janitorial services. In 1990, Ralph E. Ablon was succeeded as president and CEO by his son Richard. In 1991, it acquired a professional services company called ERC Environmental and Energy Services for $80 million.
Ogden Entertainment
Ogden's entertainment division provided concession, merchandise, maintenance, cleaning, security, parking, and facility management services as well as concert promotions. Its clients included the Capital Centre,
Rosemont Horizon
Allstate Arena is a multi-purpose arena in Rosemont, Illinois, United States. It is located near the intersection of Mannheim Road and Interstate 90, adjacent to the city limits of Chicago and O'Hare International Airport. The facility opened in ...
,
Palacio de los Deportes
() is an indoor arena located in Mexico City, Mexico. It is within the Magdalena Mixhuca Sports City complex, near the Mexico City International Airport and in front of the Foro Sol, in which sports and artistic events are also celebrated. It i ...
,
Target Center
Target Center is a multi-purpose arena located in Minneapolis that opened in 1990. It hosts major family shows, concerts, sporting events, graduations and private events. Target Corporation, founded and headquartered in Minneapolis since 1902, ...
Anaheim Stadium
Angel Stadium of Anaheim is a baseball stadium located in Anaheim, California. Since its opening in 1966, it has served as the home ballpark of the Los Angeles Angels of Major League Baseball (MLB), and was also the home stadium to the Los Angel ...
, and
Rich Stadium
Highmark Stadium is a stadium in Orchard Park, New York, in the Southtowns of the Buffalo metropolitan area. The stadium opened in 1973 as Rich Stadium and is the home venue of the Buffalo Bills of the National Football League (NFL). It was ...
. Ogden was a major investor as well as the manager of the
Corel Centre
Canadian Tire Centre (french: links=no, Centre Canadian Tire) is a multi-purpose indoor arena in Ottawa, Ontario, Canada, located in the western suburb of Stittsville. It opened in January 1996 as the Palladium and was also known as Corel Cen ...
in
Ottawa
Ottawa (, ; Canadian French: ) is the capital city of Canada. It is located at the confluence of the Ottawa River and the Rideau River in the southern portion of the province of Ontario. Ottawa borders Gatineau, Quebec, and forms the core ...
.
In 1994, Ogden purchased
Phoenix Park Racecourse
Phoenix Park Racecourse is a former horse racing venue in Ireland. It was located in the townlands of Ashtown and Castleknock in the civil parish of Castleknock on the northern edge of the Phoenix Park in Dublin. The course was founded by JHH ...
in
Dublin
Dublin (; , or ) is the capital and largest city of Republic of Ireland, Ireland. On a bay at the mouth of the River Liffey, it is in the Provinces of Ireland, province of Leinster, bordered on the south by the Dublin Mountains, a part of th ...
. The company planned on constructing a 2,500-seat conference center, a 65,000-seat stadium, a 12,000-seat indoor arena, and a hotel/casino on the site of the abandoned horse track, however, lack of support led to Ogden selling the property in 1998.
Ogden Entertainment produced ''
Victor/Victoria
''Victor/Victoria'' is a 1982 musical comedy film written and directed by Blake Edwards and starring Julie Andrews, James Garner, Robert Preston, Lesley Ann Warren, Alex Karras, and John Rhys-Davies. The film was produced by Tony Adams and sco ...
'', ''
The Old Man and the Sea
''The Old Man and the Sea'' is a novella written by the American author Ernest Hemingway in 1951 in Cayo Blanco (Cuba), and published in 1952. It was the last major work of fiction written by Hemingway that was published during his lifetime. ...
'', ''
Amazon
Amazon most often refers to:
* Amazons, a tribe of female warriors in Greek mythology
* Amazon rainforest, a rainforest covering most of the Amazon basin
* Amazon River, in South America
* Amazon (company), an American multinational technology c ...
'', and '' Mark Twain's America''.
In 1998, Ogden began construction on Jazzland, a 140-acre theme park located in New Orleans. In 1999, it acquired several water parks, including Wet'n Wild Inc.
Beginnings in energy-from-waste
Ogden entered the energy-from-waste business in 1983, when it acquired intellectual property rights to the Martin GmbH incinerator technology commonly used in Europe, as well as a method of hazardous waste disposal. The company formed Ogden Martin Systems as a subsidiary for its energy-from-waste business. By 1986, Ogden had five energy-from-waste plants under construction and agreements in place to build four more. In 1993, Ogden subsidiary Ogden Projects, Inc. acquired
ABB
ABB Ltd. is a Swedish- Swiss multinational corporation headquartered in Zürich, Switzerland. The company was formed in 1988 when Sweden's Allmänna Svenska Elektriska Aktiebolaget (ASEA) and Switzerland's Brown, Boveri & Cie merged to crea ...
’s energy-from-waste business. This increased Ogden’s energy-from-waste business from 21 plants with a capacity of 20,675 tons-per-day to 24 plants with a capacity of 28,135 tons-per-day.
Sale of non-energy assets
By 1995, half of Ogden's revenues were from energy-from-waste projects. That year, Ogden was restructured into three divisions: aviation, energy, and entertainment. In December 1995, Ogden sold its bioservices unit to the McKesson Corporation. In 1997 it sold its building-maintenance and engineering-services operations in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
to
ABM Industries
ABM Industries Inc. is a facility management provider in the United States. ABM was founded in 1909 by Morris Rosenberg in San Francisco, California, as a single-person window washing business. As of 2013, the company has over 130,000 employees, ...
. In 1998 Ogden sold its aviation catering business to SC International Services, an Onex Corporation subsidiary that also owned SkyChefs and Caterair.
In 1999, Richard Ablon resigned as CEO. He was replaced by Scott Mackin. Mackin sought to sell off all of Ogden’s non-energy assets. In 2000 the company sold its theme and water parks to Alfa Holdings for $148 million, its concessions, food, uniform, and child-care interests to
Aramark
Aramark Corporation, known commonly as Aramark, is an American food service, facilities, and uniform services provider to clients in areas including education, healthcare, business, prisons, and leisure. It operates in North America (United St ...
for $225 million, its aviation ground services company to
John Menzies
John Menzies plc ( , ) is the holding company of Menzies Aviation plc, an aviation services business providing ground handling, cargo handling, cargo forwarding and into-plane (ITP) fuelling, based in Edinburgh, Scotland.
History
The compa ...
for $117.8 Million, and its
fixed-base operator
A fixed-base operator (FBO) is an organization granted the right by an airport to operate at the airport and provide aeronautical services such as fueling, hangaring, tie-down and parking, aircraft rental, aircraft maintenance, flight instruction, ...
business to Consolidated Lamda Holdings for $27 million.
Covanta
In 2001, Ogden's name was changed to Covanta, a
portmanteau
A portmanteau word, or portmanteau (, ) is a blend of words Covanta and its 155 subsidiaries filed for bankruptcy in 2002. The bankruptcy was prompted by the
California electricity crisis
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
and the economic downturn following the
September 11 attacks
The September 11 attacks, commonly known as 9/11, were four coordinated suicide terrorist attacks carried out by al-Qaeda against the United States on Tuesday, September 11, 2001. That morning, nineteen terrorists hijacked four commercia ...
.
In 2004, Anthony Orlando was appointed CEO. That same year, 20 banks agreed to provide $463 million in financing to help the company get out of bankruptcy, restructure, and sell itself. Covanta came out of bankruptcy in 2004, when it was purchased by Danielson Holding Corporation. In 2005, Danielson sold Ogden's interests in casinos, hockey stadiums, and other areas to focus on its energy-from-waste business. Later that year, Covanta acquired an energy-from-waste business called American Ref-Fuel for $2 billion.
In 2009, Covanta bought the energy-from-waste business of Veolia Environment for $450 million. This was followed by acquisitions of environmental services companies Advanced Waste Services and GARCO for undisclosed sums in 2014.
In 2015, Covanta appointed Stephen J. Jones as its new CEO.
As of October 2020, Michael Ranger has succeeded Stephen J. Jones as Covanta's CEO.
In December 2021, the investment firm EQT Group announced the completion of its $5.3 billion acquisition of Covanta Holding Corporation and announced its new CEO, Azeez Mohammed.
Operations
Covanta develops and operates facilities that burn trash to produce electricity, recover metals from the waste stream for recycling, and provide other industrial waste management services. As of 2013, about 60% of Covanta's revenue came from selling trash disposal services and 25% from selling electricity produced by burning trash. The remainder of its revenue was from metal recycling, construction, and other services.
As of 2018, Covanta operated more than 40 waste-to-energy plants in North America, China, and Europe. Most of Covanta's revenue came from long-term contracts with local governments or utility providers. It also benefits from tax incentives for green energy projects.
As of 2018, the company burned 20 million tons of trash annually and recycled 550,000 tons of metal. A majority of the trash is organic substances. It also burns a smaller amount of pharmaceutical byproducts, like expired medicines. Each ton of garbage contains about 50 pounds of metal that is removed with magnets, then sold for recycling.
At its plants, Covanta feeds trash into a furnace burning at 1,800 degrees Fahrenheit. The furnace produces steam that rotates a turbine, powering a generator. The remaining ash is rapidly cooled to prevent the formation of toxic compounds, then goes through additional processing. Government agencies regulate and monitor Covanta emission stacks for harmful toxins. Filters and other equipment are in place to remove most of the harmful particulates, and activated carbon removes most of the mercury. Steam is then released into the atmosphere.
Environmental and social impact
Covanta supporters say burning trash to produce energy is an environmentally-friendly way to produce power and dispose of garbage that would otherwise fill landfills. Environmental critics are concerned about mercury, lead, and other toxins produced from burning garbage. Covanta has simultaneously received awards for its positive impact on the environment, while being sued and seeing protests for its environmental impacts.
A 2008 study by the U.S. Environmental Protection Agency found that waste-to-energy plants were better for the environment than landfills, in part because they reduced the methane garbage produced in landfills and reduced reliance on other fuels like coal. A study by
Columbia University
Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manhatt ...
said if waste-to-energy was as popular in the United States as it is in Europe, the U.S. would reduce carbon emissions by 264 million tons annually. However, many environmentalists are skeptical about Covanta's claim that the steam emitted from a plant's furnace does not contain excess toxins. Some environmentalist distrust government monitoring of Covanta's emission stacks, and have lobbied for more regulation.
Additionally, Covanta has been cited numerous times for exceeding air pollution standards. For example, one Covanta plant in Newark was cited for violating emission standards; in 2010, a related lawsuit was settled for $875,000, which was used for a local green space program. Similar problems have led to fines and settlements for mercury emissions in Florida, dioxin in Connecticut, and for hydrated lime in
Dublin, Ireland
Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 cen ...
.
An academic from Columbia University has said most energy-from-waste emission criticisms are related to dated technology or misinformation. Covanta said its facilities are compliant with emission standards 99.9% of the time.
Covanta works with local governments to safely dispose of prescription drugs. In 2014, there was a controversy about whether an Oregon Covanta facility was burning aborted fetuses and other human body parts as part of its medical waste. Covanta said its plant never received aborted fetuses as fuel.
See also
*
Essex County Resource Recovery Facility
The Essex County Resource Recovery Facility, also known as Covanta Essex, is a waste-to-energy incineration power station in Essex County, New Jersey, United States. Opened in 1990, it is owned by the Port Authority of New York and New Jersey (P ...
*
Delaware Valley Resource Recovery Facility
The Delaware Valley Resource Recovery Facility is a trash incineration plant located in Chester, Pennsylvania. The waste-to-energy plant, which incinerates waste to generate power, was built and operated by Westinghouse from 1991 to 1997. It is ...