Enviva Partners, LP has announced that it has completed the previously announced acquisition of the Sampson NC wood pellet plant and associated off-take contracts from Enviva Holdings.
US wood pellet major Enviva Partners, LP has announced that it has completed the previously announced acquisition of the Sampson wood pellet plant and associated off-take contracts from Enviva Holdings, LP’s joint venture with affiliates of John Hancock Life Insurance Company.
– We are pleased to announce that the Sampson acquisition, our second drop-down transaction since our IPO last year, was completed ahead of schedule. The acquisition adds a world-class asset to our production fleet and further diversifies our customer base, and the related financing activities provide significant financial flexibility as we plan for continued long-term growth, said John Keppler, Chairman and Chief Executive Officer of Enviva Partners.
The Sampson acquisition includes the recently completed 600 000 tonne per annum capacity wood pellet production plant in Sampson County, North Carolina (NC), a 10-year, 420 000 tonne per annum year off-take contract with an affiliate of Danish energy major Dong Energy Thermal Power A/S, a 15-year, 95 000 tonne per annum off-take contract with the Hancock JV, and matching third-party shipping contracts.
The acquired off-take contracts extend the weighted average remaining term of the Partnership’s portfolio of off-take contracts to 9.7 years and increase the product sales backlog to US$5.7 billion, each as of January 1, 2017.
The Sampson plant is expected to produce approximately 500 000 tonnes of pellets in 2017 and to reach its full production capacity of approximately 600 000 tonnes in 2019. With the Sampson plant Enviva Partners own and operate seven pellet plants with a combined annual production capacity of approximately 2.8 million tonnes making it the world’s largest producer.