Enviva completes Colombo Energy pellet plant acquisition
US-based Enviva Holdings, LP has announced that it, through its joint venture, Enviva JV Development Company, LLC, has completed the acquisition of a wood pellet production plant in Greenwood, South Carolina (SC) and related assets from The Navigator Company, S.A., a Portuguese paper and pulp company. Enviva intends to make investments in the plant to improve its operational efficiency and add additional emissions control equipment that it expects will increase its production capacity.
According to a statement, Enviva has completed the acquisition through its previously announced joint venture (JV). The deal marks the first investment by the new JV, which was recently created by Enviva to “acquire, develop and construct” wood pellet production plants and deep-water marine terminals in the Southeastern United States.
Previously called Colombo Energy, the Greenwood plant was acquired from The Navigator Company that built and commissioned the facility. Strategically located in a deep natural resource basin, it employs nearly 80 full-time employees.
Enviva is very excited to formally welcome the Greenwood team to the Enviva family. Together, we look forward to growing this facility in partnership with the Greenwood community and our sustainable supply chain that includes forest landowners, loggers, truckers and the mechanical, and other service providers essential to keeping a world-class manufacturing operation running smoothly, said Royal Smith, Enviva’s Executive Vice President of Operations.
Capacity increase planned
Enviva also revealed that it intends to make investments in the Greenwood plant to improve its operational efficiency and add additional emissions control equipment that it expects will increase its annual production capacity by around 100 000 tonnes to 600 000 tonnes by 2019, subject to receiving the necessary permits.
The Greenwood plant is an ideal addition to our portfolio of manufacturing and export terminal facilities, and we are excited to formally welcome this team to the Enviva family. This latest investment is a testament to the strength of the global biomass market and will ensure Enviva is well positioned to meet its long-term contracted demand from customers seeking renewable energy alternatives to coal in Europe and Asia, said John Keppler, Chairman and CEO of Enviva.
In a note sent to Enviva, South Carolina Senator Lindsey Graham welcomed the company into the “South Carolina family of manufacturers” and looked “forward to growing our mutually beneficial relationship in the years to come”.
Enviva’s combined plant operations now include seven manufacturing sites in Virginia, North Carolina, South Carolina, Mississippi, and Florida, with an eighth under construction in Richmond County, North Carolina. In total, these facilities will represent more than 4 million tonnes per annum of production capacity consolidating Enviva’s position as the world’s largest wood pellet producer.