Jan 8 2018
The portuguese forest industrial company Navigator will sell it´s american pellets business including the 500 000 t/y pellets production facility Colombo Energy in Greenwood, South Carolina, Buyer is a joint venture between the development unit of the world largest pellets producer Enviva and the John Hancock Life Insurance Company, called Enviva JV Development Company, LLC.
In a statement the Navigator company said that “faced with a financially attractive divestment opportunity”, it decided to “sell the pellet business and related assets, thereby freeing up capital.”. The sale is, however, subject to certain conditions and regulatory authorizations, and Navigator anticipates that “the process will be completed during the first half of 2018”.
At the end of 2014, Navigator decided to invest in a pellet plant in Greenwood, South Carolina, with a production capacity of 500,000 tonnes per year, which was completed in the second half of 2016. At the time, the still designated Portucel announced the investment of about 110 million dollars to build a pellet factory in the US state of South Carolina.
January 2 Enviva LC announced that its development subsidiary, Enviva Development Holdings, LLC, entered into a new joint venture, Enviva JV Development Company, LLC, with affiliates of The John Hancock Life Insurance Company (U.S.A.) to acquire, develop and construct wood pellet production plants and deep-water marine terminals in the Southeastern United States. The new joint venture will be managed by Enviva and supported by the Hancock Renewable Energy Group, a unit of the Hancock Natural Resource Group (HREG). In addition, the new joint venture has agreed to acquire the above mentioned wood pellet production plant in Greenwood.
“We are very pleased to announce the extension of our development relationship with John Hancock and HREG. The new joint venture is expected to develop and construct new production plants and marine terminals required to serve the growing Asian and European markets,” said John Keppler, President and Chief Executive Officer of Enviva.
“As the plants and terminal assets contemplated in the joint venture become fully contracted and reach commercial operation, we expect to offer them to Enviva Partners, LP, providing additional visibility into the partnership’s potential drop-down inventory.”
New Joint Venture intends to build more pellets production plants
Through their affiliates, Enviva and John Hancock will provide the capital to the new joint venture needed to fund the acquisition of the Greenwood plant as well as the planned development of a deep-water marine terminal at the Port of Pascagoula, Mississippi and at least two additional wood pellet production facilities, subject to certain terms and conditions.
The new joint venture expects to complete the production ramp and invest incremental capital in the Greenwood plant required to improve the operational efficiency and increase the production capacity of the facility. The production of the Greenwood plant initially will be sold to Enviva Partners, LP under a take-or-pay off-take contract and will continue to be exported from the Partnership’s deep-water marine terminal in Wilmington, North Carolina.
“The Greenwood plant is well-constructed, strategically located in a deep natural resource basin and has a strong manufacturing base to build on,” said Keppler.
“Enviva is a proven acquirer and we are excited to bring this team into the Enviva family and to grow this plant into a world-class production facility. ”
Hamlet pellet production plant will open 2019
The existing joint venture between affiliates of Enviva and John Hancock will retain ownership of Enviva Pellets Hamlet, LLC, the entity constructing a 600,000 metric tons per year production plant in Hamlet, North Carolina. Enviva expects the Hamlet plant will be operational in the first quarter of 2019. Production from the Hamlet plant is contracted to supply MGT Power’s Teesside Renewable Energy Plant, which currently is under construction in the United Kingdom.
About Enviva Holdings, LP
Enviva Holdings, LP is the world’s largest producer of wood pellets, a renewable and sustainable energy source used to generate electricity and heat. Through its subsidiaries, Enviva Holdings, LP owns and operates plants in the Southeastern United States that produce nearly 3 million metric tons of wood pellets annually. Enviva export pellets primarily to power plants in the United Kingdom and Europe that previously were fueled by coal, enabling them to reduce their lifetime carbon footprint by about 80 percent. The pellets are produced using sustainable practices that protect Southern forests, about 600 people are employed and support many other businesses in the rural South, where jobs and economic opportunity are sometimes scarce. Enviva Holdings, LP conducts its activities primarily through two entities: Enviva Partners, LP, a publicly-traded master limited partnership (NYSE: EVA), and Enviva Development Holdings, LLC, a wholly-owned private company.
@This article is published by business.conbio.info 2019-01-08, edited by Lennart Ljungblom and is based on a press release. BcB Business.conbio.info is since 2014 a leading news site for bioenergy related business. It is part of a family of web sites please also visit conbio.info, novator.se and inbio.biz