Covanta Holding Corp. on Aug. 9 said it agreed to acquire Palm Beach Resource Recovery Corp. from Babcock & Wilcox Enterprises Inc. for $45 million.

Palm Beach Resource Recovery has operating and maintenance contracts for the Palm Beach Renewable Energy Facility No. 1 and Palm Beach Renewable Energy Facility No.2 waste-to-energy facilities in Palm Beach County, Fla. The contracts have generated approximately $60 million in annual revenues in the past.

The transaction is expected to close during the third quarter and would see Covanta assume operations of the facilities.

Facility No. 1 was originally built in 1989 and was completely refurbished in 2008. It is a refuse-derived fuel facility with a waste processing capacity of 795,000 tons per year and generating capacity of up to 60 MW. The facility's operating contract expires in 2029 and includes renewal options.

Facility No. 2 was completed in 2015. It is a 1 million-ton-per-year mass burn facility that generates up to 95 MW of electricity. The facility's operating contract expires in 2035.

The Solid Waste Authority of Palm Beach owns the facilities.