Through their affiliates, Enviva Development Holdings, LLC ("Enviva") and Hancock Natural Resource Group, Inc. ("HNRG"), the companies have committed to invest up to an aggregate of $320 million in equity capital in Enviva Wilmington Holdings, LLC (the "Joint Venture").
The Joint Venture plans to construct an industrial wood pellet production plant in Sampson County, North Carolina, a marine export terminal at the Port of Wilmington, North Carolina, and potentially other wood pellet plants and marine terminals in the southeastern U.S. Enviva will serve as the managing member and operator of the Joint Venture.
The Joint Venture expects to commence construction of the Sampson plant and Wilmington terminal later this month. Wood pellet production from the Sampson plant will be exported through the Wilmington terminal under long-term contracts with major European power generators. The Joint Venture's customers are replacing coal with wood pellets to improve the environmental profile of energy generation.
Enviva's affiliates currently own and operate five wood pellet production plants throughout the southeastern U.S. and export its product through terminals in Chesapeake, Virginia and Mobile, Alabama. The Joint Venture's projects are expected to complement this existing operating footprint.
