The joint venture has been formed to acquire, develop and construct wood pellet production plants and deep-water marine terminals across the Southeastern US.
The new joint venture will be managed Enviva and will be supported by the Hancock Renewable Energy Group (HREG), a unit of the Hancock Natural Resource Group.
Enviva JV Development has also agreed to acquire a wood pellet production plant in Greenwood, South Carolina, which is subject to customary closing conditions. The acquisition is expected to close in the first half of 2018.
Enviva president and CEO John Keppler said “We are very pleased to announce the extension of our development relationship with John Hancock and HREG. The new joint venture is expected to develop and construct new production plants and marine terminals required to serve the growing Asian and European markets.
“As the plants and terminal assets contemplated in the joint venture become fully contracted and reach commercial operation, we expect to offer them to Enviva Partners, LP, providing additional visibility into the partnership’s potential drop-down inventory.”
Through their affiliates, Enviva and John Hancock will inject capital in the new JV that is required to fund the purchase of the wood pellet production plant in Greenwood.
The investment will also be used to fund development of a deep-water marine terminal at the Port of Pascagoula, Mississippi and at least two more wood pellet production plants, based on meeting of certain terms and conditions.
Enviva Wilmington Holdings, the existing development JV of Enviva and John Hancock along with Enviva Development will contribute select wood pellet production plant and marine terminal development projects in the Southeastern US to the new JV.
