Covanta Metals Management Metals and Ash Reuse

NY Solid Waste and Recycling Conference

May 21st, 2019

Agenda

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• Introduction: Covanta Metals Management

• Timeline of accomplishments

• Vertical integration of non-ferrous

• Total Ash Processing System (TAPS)

Covanta Metals Management Areas of Responsibility

Business Management and Development: • Project development at EFW facilities and mobile assets • Total Ash Processing System development and deployment • Aggregate product testing and market penetration • Ash test plan to determine remaining value propositions

Strategy and Marketing Efforts: • EFW generated metal sales for +600,000 tons • Commodity sales for regional ferrous and central non-ferrous operating assets • Off-take agreements for aggregate products • Strategic Plan for European IBA and FA disposal options

Continuous Improvement and Optimization: • Improve recovery efficiency at energy-from-waste assets • Achieve fleet goal of 2% non-ferrous by end 2020

Engineering/Project Execution: • Regional operations; EFW plant retrofits; Total Ash Processing installations and operations

Covanta Metals Management Since 2012, CVA has invested in over 70 individual metal enhancement projects

Ferrous – Ferrous (Fe) drum installations/upgrades – Shredder and air classification systems – Regional ferrous processing facilities (non-shred)

Non-Ferrous – Nonferrous (NFe) separation systems (ECSs) focused on +/- 10mm fraction sizes – Sensor sorter test installations and ECS rotor upgrades – Bottom and fly-ash separation for improved metal recovery – Central non-ferrous processing facility

Landfill – Mobile landfill metal recovery operations for fresh and mined ash – Installation of permanent system in Peabody, Ma.

Total ash processing system (TAPS) – Wash plant for combined ash – Beneficial reuse products for resale

Improved metal recycling (and avoided landfilling) by nearly 200,000 tons per year

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2012 - 2013 CMM is formed; Focus on Fe & NFe Metals Recovery

2014 Ash Reuse Evaluations

2015 Ash Pilot Plant built @ 3rd Party Research Facility

2016 & 2017 Ferrous Processing Facility and Non-Ferrous Facility Start Ups – Fairless Hills

2018 and Beyond PADEP issues Ash Reuse Permit; CVA builds Total Ash Processing Facility at Fairless; Operates first Mobile Ash Processing system

Covanta Metals Management Overview and Accomplishments

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CMM: MODERN DAY PROSPECTING

Covanta gross metal tons recovered from EFW operations

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415,264 418,583

456,316

495,264

538,218 524,559

[VALUE]

16,814 22,322

33,004

37,025

41,923 44,707

[VALUE]

400,000

425,000

450,000

475,000

500,000

525,000

550,000

575,000

600,000

625,000

2012 2013 2014 2015 2016 2017 2018

Gross Tons Recovered: EFW Facilities

Ferrous Non-Ferrous

Improved metal recycling (as a % of ash) by over 35%

Metal Recovery Efficiency 2019 & EFW Metal Recovery Runway

Volume and Recovery Efficiency Improvements

– Recovery records established for 7 consecutive years on both ferrous and non-ferrous

– Field engineers focused on seasonal adjustments of equipment, product enhancements and project execution

EFW Facilities EFW Facilities 0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

Non-Ferrous Metal Recovery Actual % of Combined Ash

YTD 2019 February

Ash (%) YTD 2019 Average 2013 Avg

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Ferrous Metal Recovery Actual % of Combined Ash

YTD 2019 February

Ash (%) YTD 2019 Average 2013 avg

Covanta Metals Management Fe Processing / Enhancement Facility – Fairless Hills, PA

• Operational Summary – Operational since November 2015

– Services up to 15 plants in 6 states

– Processed over 600,000 tons to date

– Removes ash and fractionalizes Fe

– Separates Non-ferrous & sealed units from the Fe

• Benefits of Internalized Ferrous – Reduces dependency on 3rd Party processors

– Assures receivable in all markets

– Higher quality control leads to more quality outlets

– Environmental control of ash and storm water

– Easy to replicate in other markets

• Upgraded Credit Worthiness of Buyers – Ability to sell to domestic steel mills

– Rail shipments to the Ohio Valley steel mills

– Ocean containers for armatures and sealed units

– Baled wire sold to local processors

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Covanta Metals Management Non-ferrous Separation Facility – Fairless Hills, PA

• Operational Summary – Separates heavy from light non-ferrous metal units

– Operational since May 2017

– Services over 30 plants across 15 states

– Processed over 125,000 tons to date

– Removes ash and creates several particle sizes to maximize density separation

• Benefits of Internalized Non-Ferrous – Traditional buyers did not pay for metal units <6mm

– Broker model isolated us from compositional make-up of metals

– Maximum value creation through commodity separation

– Diversified portfolio of buyers including international smelters

– Coin value captured as part of separation

– Environmental control of ash and storm water

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Material testing

Aluminum “Twitch” Ready for Shipment

Coins recovered-post cleaning

Covanta Metals Management Total Ash Processing System (TAPS) : Pilot Plant

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2014: CVA commenced an ash reuse initiative – Evaluation of chemical & geotechnical properties,

processing technologies, potential use in different products

– Consulted with several European companies regarding aggregate production and road use

– Bottom ash reuse as road base in Pasco County, FL (regulatory approval)

Findings: – Ash contains positive attributes for reuse – Remaining metal content would be a limiting factor – Remaining “fines” will requires innovative

technology for recovery & removal – Wet screening and separation would seemingly

provide improved results

Results: – Successfully demonstrated wet technology to

process combined ash – All waste products passed non-hazardous

leaching tests – Mineral fractions (with further processing)

could meet construction specifications for aggregate

– Next step: full scale facility for enhanced metal recovery and aggregate production

Covanta Metals Management Pilot plant results: ash constituents

CEMENT

CONCRETE

GLASS

POTENTIAL MARKETS

ASPHALT

Fe NFe Low-grade Fe

Metal Concentrate

Medium [CATEGORY

NAME]

Large Aggregate Fine

Aggregate (sand)

[CATEGORY NAME]

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Clean Ferrous Metal

Clean Non-Ferrous Metal

STEEL

LANDFILL

Ash

Total Ash Process System Aggregate

Aggregate

Filter Cake

SMELTING

Ash

Ash

Total Ash Processing System (TAPS): What is it?

Modular batch feed system comprised of: • Washing and crushing circuit for effective particle separation and fine fraction removal • High intensity magnets & eddy currents to separate and polish large aggregates • Specialty equipment to remove organics from fine metal particles and sand • Water treatment and decanting equipment

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Covanta Metals Management Reuse Applications

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Covanta Metals Management Aggregate Research

• Physical property evaluations conducted in partnership with local universities

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Physical Property Specification Test

Standard

Gradation Meets ASTM C33 ASTM C136

Bulk Specific Gravity >2.40 ASTM C128

Absorption <2.0% ASTM C128

Soundness <5.0% ASTM C88

Clay Lumps and Friable Particles <5.0% ASTM C142

Organic Impurities Lighter than Standard 11 ASTM C40

Fine Aggregate Angularity >45% ASTM C1252

Sand Equivalent >45% ASTM C2419

Testing indicates that our products can meet Department of Transportation specification requirements for asphalt applications

Covanta Metals Management Course Aggregate in Cement Applications

• Cement – low grade ferrous as iron replacement

– Raw materials used for cement: limestone, sand, bauxite/clay, iron oxide – Certain solid fractions contains iron oxide – Successful full-scale test completed at cement plants in PA and FL – Letter of Intent and working on commercial agreement

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• Iron oxide content hit mix design targets • Silica content was favorable • Alkalis were “in-line”

Cement Plant QC Manager statement: “As far as I’m concerned, the test was a success.”

Covanta Metals Management PADEP Permitting – Total Ash Processing Project at Fairless Hills

• PA General Environmental Permit issued: March 23, 2018

– First of its kind in the United States

• Covanta permit application submitted June 1, 2018

– Allows for the beneficial use of aggregate recovered from EFW ash

• Fabrication and site construction timetable 6 months

• Planned start-up late 2019

• Replicate plant strategically (Long Island, New England, etc)

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Covanta Metals Management

Questions/Comments?

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