Enviva LP acquires wood pellet company with 650,000 mt annual production

Source:
IHB
Views:
2729
  • text size

Enviva LP through one of its affiliates has acquired Green Circle Bio Energy, Inc., a US-based company. Green Circle owns and operates a wood pellet production plant in Cottondale, Florida that has a production capacity of approximately 650,000 metric tons per year. The plant benefits from an abundant supply of locally procured raw material, principally pine softwood, and exports its product from the Port of Panama City, Florida.

Enviva currently owns and operates five wood pellet production plants located throughout the southeast United States and exports its product through terminals in Chesapeake, Virginia and Mobile, Alabama. Green Circle’s Florida-based production and logistics operations are expected to complement Enviva’s existing operating footprint.

Like Enviva, Green Circle supplies wood pellets under long-term contracts to major European power generators that replace coal with biomass in order to improve the environmental profile of energy generation. Additionally, Green Circle supplies the European market for wood pellets to heat homes and commercial buildings and to produce process heat at industrial sites.

The acquisition is expected to close by the first quarter of 2015 and is subject to customary closing conditions. No financial details were disclosed. 

Previous to this acquisition, Enviva had an annual production capacity of approximately 1.6 million metric tons. This means that with the new acquisition, Enviva will reach a production capacity of more than 2 million mt of wood pellets. 

Post comment