May 11 (Renewables Now) - US wood pellets supplier Enviva Holdings LP said on Thursday it has offloaded certain limited partner interests in its unit Enviva Partners so as to finance projects.
Through two of its subsidiaries, Enviva Holdings has sold 1,265,453 common units representing limited partner interests in Enviva Partners to accounts managed by ValueAct Spring Fund, HITE Hedge Asset Management LLC and Kayne Anderson Capital Advisors LP for an undisclosed amount. Proceeds from the sale will be used to support the construction of its Hamlet wood pellet production plant in North Carolina’s Richmond County and the expansion of an existing facility in Greenwood, South Carolina.
“We expect one plant to be made available as a drop-down transaction to Enviva Partners in 2019 and the other in 2020,” said John Keppler, Enviva’s chairman and CEO. He added that the deal indicates the “growing interest in renewable energy and infrastructure investments.”
According to its website, Enviva has wood pellet manufacturing bases at several locations across the US, including Virginia, North Carolina, South Carolina, Mississippi and Florida.