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Enviva starts production at Hamlet pellet plant

04.07.2019 − 

A few days ago, the US pellet producer Enviva Partners started pellet production in the newly built 600,000 t pellet plant of Enviva Pellets Hamlet LLC.

 



A drop-down process is currently underway for the Hamlet plant. Enviva will pay a total of US$ 165m to its joint venture partnerJohn Hancock Life Insurance. At the closing of the agreements at the beginning of April, US$ 75m was already due, which was settled in the form of 1,681,238 shares at US$ 29.74 each and US$ 25m in cash. With the start of regular production operations, a second tranche of US$ 50m in cash will now be due and the third and final tranche of US$ 40m is expected to be paid on January 2, 2020.

With the acquisition of Hamlet, the number of pellet plants at Enviva will increase to a total of seven and the associated production capacity to around 3.4m tonnes/year.

 

The pellets produced in Hamlet will be shipped via the storage and transshipment terminal of Enviva Port of Wilmington in Wilmington/North Carolina, which Enviva took over from its joint venture partner John Hancock Life Insurance in October 2017 also as part of a drop-down process.

 

 

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