Enviva Wilmington Holdings, LLC (the “Hancock JV”), a joint venture between an affiliate of Enviva Holdings, LP and affiliates of John Hancock Life Insurance Company, today announced that its previously disclosed take-or-pay off-take contract (the “MGT Contract”) to supply MGT’s Tees Renewable Energy Plant (the “Tees REP”) with nearly 1 million metric tons per year (“MTPY”) of wood pellets is now firm as all conditions precedent to the effectiveness of the contract have been satisfied. Deliveries under the MGT Contract are expected to commence in 2019 and continue through 2034.
Enviva Holdings, LP is the sponsor of Enviva Partners, LP (the “Partnership”). The Partnership has a contract with the Hancock JV to supply 375,000 MTPY (the “EVA-MGT Contract”) of the contracted volume to the Tees REP. The EVA-MGT Contract is also now firm. The EVA-MGT Contract commences in 2019, ramps to full supply in 2021, and continues through 2034. This contract extends the weighted average remaining term of the Partnership’s off-take contracts to 9.6 years as of August 1, 2016.