Zacks_Analysts' Blog : Veolia to Develop Renewable Power - Analyst Blog

In an effort to reduce the use of fossil fuels in energy generation Veolia Environnement S.A. (VE) announced that its unit Veolia Energy North America has decided to develop its first landfill gas-to-energy project in the United States at the Veolia Environmental Services North America Hickory Meadows landfill, located in eastern Wisconsin.

This 4.8 Megawatt (MW) power project will have three landfill reciprocating engine generator sets with a capacity of 1.6 MW each, fueled exclusively by landfill gas. This project is scheduled to be in operation from the summer of 2011, with estimated annual production capacity of 42,000 MW hours.

The unit of Veolia has already negotiated a deal with Wisconsin Public Service. As per the deal the latter will purchase all the energy produced from this power plant once it is completed.

Veolia is working globally on renewable energy facilities to produce environment friendly power. The company operates 2,400 MW of alternate and renewable energy facilities all over the world; thus successfully reducing the emission of greenhouse gas by 6.6 million tons in 2009. This new 4.8 MW power project upon completion will reduce the emission of green house gas by 25,000 tons per year.

In sync with the company's alternate energy projects, Veolia ES Solid Waste, a Veolia business wing, entered into a recent agreement with the Milwaukee Metropolitan Sewerage District to develop an alternative energy project. This project is expected to come online by 2013.

Veolia Environnement currently retains a Zacks #2 Rank (short-term Buy rating).  Veolia’s peers Connecticut Water Service Inc. (CTWS) and York Water Co. (YORW) also retain a Zacks#2 Rank (short-term Buy rating).

Veolia Energy North America is an operator and developer of sustainable energy systems. Based in France, Veolia Environnement is a provider of environmental management services to its worldwide consumers. It operates through four segments, which are Water, Environmental Services, Energy Services, and Transportation.