Enviva Announces Off-Take Contracts with Mitsubishi Corporation are Firm
BETHESDA, Md.–(BUSINESS WIRE)–Enviva announced today that the conditions precedent to the organization’s previously announced take-or-pay off-take contracts to supply 630,000 metric tons per year (MTPY) 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 the Aioi Bioenergy Corporation, a joint venture between Mitsubishi Corporation Power Ltd. And Kansai Electric Power Co, Inc., which is converting an existing oil-fired power plant to biomass.
Under these contracts, Enviva Partners, LP (NYSE: EVA) (the “Partnership”) and Enviva JV Development Company, LLC, the Partnership’s sponsor’s joint venture with John Hancock Life Insurance Company (U.S.A.), will supply approximately 180,000 and 450,000 MTPY of wood pellets, respectively. Deliveries under the contracts are scheduled to commence in late 2022 and continue for at least 15 years.
“Our partners at Aioi Bioenergy and Mitsubishi Corporation are at the forefront of Japan’s commitment to reducing the impacts of climate change,” said John Keppler, Chairman and Chief Executive Officer of Enviva. “We are privileged and honored to be the sole source of supply of sustainable wood pellet fuel to the Aioi facility, one of the largest dedicated biomass projects in Japan announced to date, and we look forward to helping Mitsubishi and Kansai deliver on the promise of renewable energy.”
Enviva Partners, LP and its sponsor have now finalized long-term off-take agreements with counterparties in Japan that will total 1.5 million MTPY by the end of 2022.
About Enviva Partners, LP
Enviva Partners, LP (NYSE: EVA) is a publicly traded master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets. The Partnership sells a significant majority of its wood pellets through long-term, take-or-pay agreements with creditworthy customers in the United Kingdom and Europe. The Partnership owns and operates six plants with a combined production capacity of nearly three million metric tons of wood pellets per year in Virginia, North Carolina, Mississippi, and Florida. In addition, the Partnership exports wood pellets through its owned marine terminal assets at the Port of Chesapeake, Virginia, and the Port of Wilmington, North Carolina and from third-party marine terminals in Mobile, Alabama and Panama City, Florida. To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com and follow us on Twitter (@EnvivaBiomass).
About Enviva Holdings, LP
Enviva Holdings, LP is the world’s largest producer of wood pellets, a renewable and sustainable energy source used to generate electricity and heat. Through its subsidiaries, Enviva Holdings, LP owns and operates wood pellet processing plants and deep-water export terminals in the Southeastern United States. We export our pellets primarily to power plants in the United Kingdom and Europe that previously were fueled by coal, enabling them to reduce their lifetime carbon footprint by about 80 percent. We make our pellets using sustainable practices that protect Southern forests, and we employ about 800 people and support many other businesses in the rural South, where jobs and economic opportunity are sometimes scarce. Enviva Holdings, LP conducts its activities primarily through two entities: Enviva Partners, LP, a publicly traded master limited partnership (NYSE: EVA), and Enviva Development Holdings, LLC, a wholly-owned private company. To learn more about Enviva, please visit our website at www.envivabiomass.com.
Cautionary Note Concerning Forward-Looking Statements
Certain statements and information in this press release, including those concerning future deliveries under off-take contracts, may constitute “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effects. Although management believes that these forward-looking statements are reasonable when made, there can be no assurance that future developments will be those that management anticipates. These forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections.