Enviva Holdings' off-take with Sumitomo becomes firm
US-based Enviva Holdings, LP (Enviva) the world’s largest producer of wood pellets, has announced that its previously disclosed take-or-pay off-take contract to supply Sumitomo Corporation with 250 000 tonnes per annum of wood pellets is now firm, as all conditions precedent to the effectiveness of the contract has been satisfied.
Last month, Enviva revealed that its sponsor had executed two new take-or-pay off-take contracts with Sumitomo Corporation to supply a total of 520 000 tonnes-per-annum to new biomass power plants in Japan.
These new contracts included a firm 15-year, 270 000 tonnes-per-annum contract commencing in 2022 and a second 15-year, 250 000 tonnes-per annum contract commencing in 2021, subject to certain conditions precedent, which Enviva expected to be met in 2018.
According to a statement on September 13, all the conditions of the second contract have now been “satisfied” with deliveries under the contract are scheduled to commence in 2021 and continue through 2036.