Enviva announces off-take contracts with Mitsubishi Corporation
November 2, 2018
Nov. 2, 2018 - 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 and Enviva JV Development Company, LLC, the partnership’s sponsor’s joint venture with John Hancock Life Insurance Company (U.S.), 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.
“Our partners at Aioi Bioenergy and Mitsubishi Corporation are at the forefront of Japan’s commitment to reducing the impacts of climate change,” said John Keppler, chairman and chief executive officer of Enviva. “We are privileged and honored to be the sole source of supply of sustainable wood pellet fuel to the Aioi facility, one of the largest dedicated biomass projects in Japan announced to date, and we look forward to helping Mitsubishi and Kansai deliver on the promise of renewable energy.”
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