Enviva wants to more than double its production capacity from the present 6.2m t to roughly 13m tpy in the next five years and extend its activities in the biofuels segment. According to a release, Enviva has signed a memorandum of understanding (MoU) with a non-disclosed US cleantech company. The MoU states that the two partners want to collaborate in the USA to create systems and supply chains in the biofuels sector, including sustainable aviation fuel (SAF). The emphasis of the activities is to be on the southeast of the USA and possibly in California as well. As yet there are no plans for setting up an independent division for the biofuels segment. Enviva did imply, however, that it would adapt the form of products to suit the needs of its requirements outside the present core business. Enviva had already announced in November a first contract for pellet and raw material deliveries to a biofuels manufacturer.
The issue of 4.3m new ordinary shares was also announced on 19 January. At an issue price of US$70/share, the issue had a volume of US$301m. Bookrunners were Goldman Sachs, Citigroup, and J.P. Morgan. Enviva also granted the consortium leaders the option of purchasing up to 645,000 additional ordinary shares within 30 days. For pre-funding the company’s future growth, besides the capital increase, Enviva had already changed and revised its senior secured revolving credit facility in mid-December. In doing so, the scope of the facility was raised from US$525m to US$570m.
