01/02/2018
INDUSTRY NEWS: Enviva Holdings, LP announced today that its development subsidiary, Enviva Development Holdings, LLC, entered into a new joint venture, Enviva JV Development Co., LLC, with affiliates of The John Hancock Life Insurance Co. to acquire, develop and construct wood pellet production plants and deep-water marine terminals in the Southeastern U.S. The new joint venture will be managed by Enviva and supported by the Hancock Renewable Energy Group. In addition, the new joint venture has agreed to acquire a wood pellet production plant in Greenwood, SC, subject to certain customary closing conditions.
The new joint venture’s first investment is expected to be acquisition of the Greenwood plant and related assets from The Navigator Company, S.A., a Portuguese paper and pulp company. Acquisition is expected to close in the first half of 2018. The new joint venture expects to complete the production ramp and invest incremental capital in the Greenwood plant to improve operational efficiency and increase facility production capacity. Production of the Greenwood plant initially will be sold to Enviva Partners, LP under a take-or-pay off-take contract and exported from the Partnership’s deep-water marine terminal in Wilmington, NC.
“The Greenwood plant is well-constructed, strategically located in a deep natural resource basin and has a strong manufacturing base to build on,” said John Keppler, Enviva President and CEO. “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. As the Partnership has continued to extend its contracted position, high-quality, low-cost pellets from Greenwood will be an important part of meeting its growing customer demand.”