Enviva announced 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 (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.
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.
Enviva Partners, LP is a publicly traded master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets.
