Enviva Partners, LP announced the execution of a new take-or-pay off-take contract to supply wood pellets to Lynemouth Power Limited, a subsidiary of Energetický aprůmyslový holding (EPH).
Lynemouth Power plans to convert its 420 megawatt coal facility in the UK to wood pellet fuel by the end of 2017.
Deliveries under this contract are expected to commence in the 3Q 2017, ramp to full supply of 800,000 metric tons per year in 2018, and continue through the 1Q 2027.
The contract volumes are denominated in U.S. Dollars except 160,000 metric tons per year denominated in British Pound Sterling. This transaction significantly extends the weighted average remaining term of the Partnership’s off-take contracts to 8 years as of June 1, 2016.
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.