Covanta Durham York Renewable Energy Limited Partnership, a unit of Covanta Holding Corp. (NYSE: CVA), received a notice to proceed for the construction of a C$250 million ($255 million), 17.5 MW waste-to-energy project in Ontario.

Covanta will design, build and operate the project. It will use 140,000 tonnes per year of household waste left over from recycling and composting and burn it for electricity. Future plans call for steam generated at the facility to be used for district heating in an industrial park adjacent to the facility.

Design work on the project has already begun and construction is expected to begin fall of 2011. Operations are expected beginning in 2014. The project received a certificate of approval from the Ontario Ministry of the Environment in June 2011.

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