Enviva Partners, LP Strikes Long-Term Off-take Contract

Enviva Partners, LP

revealed the execution of a new take-or-pay off-take contract to supply wood pellets to Lynemouth Power Limited ("Lynemouth Power"), a subsidiary of Energetický a průmyslový holding (EPH). According to the company, Lynemouth Power intends to convert its 420 megawatt coal facility in the UK to wood pellet fuel before the end of the year 2017. Enviva Partners said that deliveries under this contract were expected to start in the third quarter of the next year, ramp to full supply of 800,000 metric tons per year in 2018, and continue through the first quarter of 2027. The company added that the contract volumes were denominated in U.S. Dollars except 160,000 metric tons per year denominated in British Pound Sterling. The company said that the transaction significantly extended the weighted average remaining term of the Partnership's off-take contracts to 8.0 years as of June 1. The company's Chairman and CEO, John Keppler, commented, "Our strategy is to fully contract our production capacity, and this contract provides additional length and diversification to our sales book. We are proud that a world-class energy group like EPH selected Enviva to supply more than half of the wood pellets required annually by its Lynemouth facility, further reinforcing our position as a preferred supplier to top-tier biomass projects." The stock traded 2.67 percent higher on Thursday.