Enviva off-takes with Mitsubishi Corporation become firm
In the United States (US), Enviva Holdings, LP (Enviva) the world’s largest producer of wood pellets, has announced that it will be the sole supplier of imported wood pellet fuel to Aioi Bioenergy, currently the largest dedicated biomass power plant project under development in Japan.
Enviva has announced that the conditions precedent to the organization’s previously announced take-or-pay off-take contracts to supply 630 000 tonnes of wood pellets to a major Japanese customer have been satisfied and the agreements are now firm.
Under the terms of the agreements with Mitsubishi Corporation, Enviva will be the exclusive, long-term imported biomass fuel supplier to Aioi Bioenergy Corporation, a joint venture between Mitsubishi Corporation Power Ltd. and Kansai Electric Power Co, Inc., which is converting an existing 375 MW oil-fired unit at the Aioi Power Station in Hyogo Prefecture, western Japan to a 200 MW biomass-fired unit.
Under these contracts, Enviva Partners, LP, and Enviva JV Development Company, LLC, the Partnership’s sponsor’s joint venture with John Hancock Life Insurance Company will supply approximately 180 000 and 450 000 tonnes per annum, respectively. Deliveries under the contracts are scheduled to commence in late 2022 and continue for at least 15 years.
Enviva Partners, LP, and its sponsor have now finalized long-term off-take agreements with counterparties in Japan that will total 1.5 million tonnes-per-annum by the end of 2022.