1. Energy-from-Waste … part of the solution October 1, 2008

2. 2 About Covanta

3. 3 Covanta Overview Covanta is the world’s largest Energy-from-Waste company –Operate in 8 countries and 15 states throughout the U.S. –Headquarters in Fairfield, New Jersey –More than 3,000 employees worldwide Provider of long-term renewable energy and environmentally safe waste disposal –Recipient of numerous state and federal awards for safety and environmental excellence

4. 4 Financial Strength NYSE Company (CVA) Enterprise value exceeds $6 billion Revenue exceeds $1.4 billion 2008 Financial Guidance (1) ● $550 - 575 million adjusted EBITDA ● $380 - 420 million cash flow from operations (1) As of April 24, 2008. This information is not being reaffirmed or updated as of the current date. Covanta Market Capitalization ($Billion)

5. 5 Energy from Waste - Vital roll in U.S. Renewable Energy and Waste Management Annual U.S Waste Generation = 388,000,000 Tons Annual U.S Renewable Generation = 87,213,000 megawatt hrs Source: 2004 Joint Study by Biocycle and Earth Engineering Center of Columbia University Source: US Department of Energy, Energy Information Administration 2005 Report Covanta owns and/or operates 38 Energy from Waste facilities and 6 biomass to electric facilities with many more in planning and development Covanta produces almost 10% of America’s non-hydro renewable electricity – enough to power over a million homes Covanta converts over 5% of the nation’s post-recycled waste into energy

7. 7 Covanta’s Consistent Performance

8. 8 Environmental Health and Safety Programs 24 Facilities in OSHA’s elite VPP STAR Program –Covanta’s Alexandria facility received the VPP STAR award and our Fairfax facility has been recommended for the VPP STAR as well. Environmental Leadership –23 EPA performance track facilities –First to install mercury control –New patented low NO x technology –Numerous industry, environmental, and community awards Virginia Environmental Excellence Sustainable Florida Leadership Michigan Clean Corporate Citizen

9. 9 About Energy from Waste (EfW)

10. 10 Safe, reliable waste disposal Reduces greenhouse gas emissions Clean, renewable electricity 24/7 Recover metal for recycling Clean Energy from Waste Population growth Climate change Dependence on fossil fuels Resource management Metal: 50 lbs Power: 560 kWh Ash: 10% of original volume Municipal Solid Waste (MSW): 2000 lbs EfW is a specially designed energy generation facility that uses household waste as fuel. Waste is combusted to produce valuable energy and help solve some of society’s big challenges

11. 11 Typical EfW Facility Layout

12. 12 Recycling 0.5 billion tons EfW 0.2 billion tons Recycling 0.5 billion tons Landfill 1.0 billion tons U.S. ~ 90 EfW facilities ~ 30 million TPY Western Europe ~ 400 EfW facilities ~ 65 million TPY Asia ~ 325 EfW facilities ~ 55 million TPY Landfill Recycling/ Composting EfW EfW roll in Global Waste Management

13. 13 Covanta in Virginia

14. 14 COVANTA FAIRFAX – Partnership/ Business Model

15. 15 The I/95 Energy/Resource Recovery Facility in Fairfax County Began commercial operation in 1990 Processes approximately 3,000 tons of MSW each day while producing more than 90 megawatts of renewable energy Service Agreement Deal – Client delivers waste and pays Covanta an O&M fee to operate the facility In 2000, completed CAAA retrofit of the facility to lower emission and meet new Federally enforced air emission guidelines

16. 16 The I/95 Energy/Resource Recovery Facility in Fairfax County All debt is paid off in 2011. The facility provides 13.7% of Virginia’s Renewable Power (22% excluding Hydro). Since 1990, the facility has: ● Produced 10 million MWhs for the region— enough to power 75,000 homes each year ● Safely disposed of approximately 19M tons of MSW, avoiding the use of 19M barrels of oil ● Recycled 375,000 tons of Ferrous metal and 3,500 tons of Non-Ferrous metals

17. 17 The Alexandria/Arlington Resource Recovery Facility Began commercial operation in 1988 Processes 975 tons of MSW a day while generating up to 23 megawatts of renewable energy Tip Fee Deal – Client pays a tip fee ($/ton) on all jurisdiction tonnage (2/3 of plant volume) In 2000, Covanta completed a $40M CAAA retrofit of the facility to lower emission and meet new Federally enforced air emission guidelines

18. 18 The Alexandria/Arlington Resource Recovery Facility In 2007, installed a new ferrous separation system for metal recycling All debt is paid off in 2013 Provides enough energy to power 20,000 homes each year Since 1988, the facility has: –Produced 4 million MWhs for the region- enough to power 20,000 homes each year –Safely disposed of approximately 7,000,000 tons of MSW, avoiding the use of 7,000,000 Barrels of oil

19. 19 Permit Limit/Unit 2004 – 2006 Actual Results % Below Limit Particulate (mg/dscm)271.9812/Unit (avg)92.7% Dioxin/Furan (ng/dscm)301.1466/Unit (avg)96.2% Mercury (mg/dscm)0.0800.0006/Unit (avg)99.3% Lead (mg/dscm)0.440.0061/Unit (avg)98.7% Cadmium (mg/dscm)0.0400.0002/Unit (avg)99.5% SO2 (ppm)291.78/Unit (avg)93.9% HCl (ppm)291.08/Unit (avg)96.3% Actual vs. Allowable Emissions Alexandria Upgrade Stellar Emission Results

20. 20 EfW - Benefits to the Local VA Host Communities Long Term Stable Waste Disposal Pricing Clean Renewable Power – Less Demand for Fossil Fuel Power (Oil & Coal) Recycling: –Recycling Credits: Ferrous and Non-Ferrous Metals Recovery –NOx Credits Reduces - Landfill Usage and Greenhouse Gases Minimize Truck Traffic Community Relations Programs / Charitable Contributions Provides Local Employment – approximately 135 jobs More than $3M spent on local businesses annually

21. 21 Recycling Rates EfW plants work together with community’s recycling program. –Fairfax County - 35% –Alexandria - 29% (5% inc. in 07 – Fe Metal) –Arlington - 42.7% –Commonwealth of Virginia – 32.2% * * 2005 data

22. 22 EfW Regulatory & Policy Landscape

23. 23 The Best Option After Recycling—Energy-from-Waste 250 million tons of garbage dumped in landfills Renewable energy generated from landfills - 6 billion kWh 30 million tons of garbage is processed into renewable energy Renewable energy generated from EfW facilities - 15 billion kWh Preserves land; offsets greenhouse gases; provides energy recovery five times greater than landfill gas to energy Energy-from-Waste Landfills A misuse of valuable land; generates methane gas – a leading contributor to global warming; inefficient energy recovery For every ton of waste processed in an Energy-from-Waste facility, we offset one ton of carbon dioxide equivalent by reducing the amount of methane generated by landfills and decreasing our dependence on fossil fuels.

24. 24 Adopting environmentally sustainable waste disposal practices –EfW is the most attractive, sustainable solution for waste disposal after recycling Generating clean energy from renewable fuels –U.S. Environmental Protection Agency states EfW “produces electricity with less environmental impact than almost any other source” –Baseload power – 24 hours a day, 7 days a week –EfW can be important contributor to overall renewable portfolio Potential to produce about 5% of U.S. electricity needs Home grown electricity benefits energy security Reducing greenhouse gas emissions to combat global warming –Offsets up to one ton of carbon dioxide equivalent for each ton of waste processed –Reduces need for landfills, which generate methane, a potent greenhouse gas –Reduces dependence on fossil fuel power: one ton of waste ~ ¼ ton of coal Environmental Benefits of Energy-from-Waste One solution helps address 3 challenges

25. 25 United States Recognized as renewable in 23 states and current Federal policy Federal legislation – outcome uncertain –Renewable electricity tax credits currently included – likely extension –Renewable Portfolio Standard (RPS) and Climate Change being debated –Whether or not EfW should benefit from these policies is specifically being debated Europe EU Landfill Directive – –65% reduction in landfilling of biodegradable Municipal Solid Waste –Significant Landfill taxes & other incentives to recycle and recover energy Not subject to CO2 emission caps China Preferential electricity tariff Target 30% EfW by 2030 EfW Regulatory & Policy Landscape

26. 26 One billion tons/yr of waste buried in landfills  EfW Opportunity U.S. and Canada –EfW re-emerging with higher fossil fuel prices –Pending regulation on renewable energy and climate change will be the driver Europe –EU Landfill Directive – significant impact on the U.K. in particular –Increasing demand for renewable power generation –Significant focus on Climate Change China –Growing middle class and urbanization – increasing waste generation –Land at a premium, making landfills less attractive –Regulatory incentives for renewable power generation benefit EfW Global Growth Opportunity in Energy-from-Waste

27. 27

28. 28 Thank You Paul E. Stauder Senior Vice President Covanta America Pstauder@covantaenergy.com