US biomass producer Enviva has recently signed a take-or-pay off-take contract as to supply wood pellets to Lynemouth Power Limited, an Energetický a prumyslový holding (EPH) subsidiary, acquired from RWE in January 2016.
By the end of 2017, Lynemouth Power wants to convert its 420 MW coal facility in the UK to wood pellet fuel. Thus, the deliveries of wood pellets will begin in the Q3 of 2017, until reaching full supply of 800,000 metric tons per year in 2018, and continue through the Q1 of 2027.
“Our strategy is to fully contract our production capacity, and this contract provides additional length and diversification to our sales book,” said John Keppler, Chairman and Chief Executive Officer.
As reported by Argus, the contract represents more than half of Lynemouth's annual requirements, Enviva said. The plant will consume around 1.4mn t/yr of wood pellets, the plant's building contractor, engineering firm Doosan Babcock, said.
The work on converting the coal-fired facility has already begun and the date for the start of the production has been proposed by EPH for the 24th of September 2017.
RWE Supply & Trading GmbH sold its Lynemouth Power Limited to EP UK Investments Limited (EP UK), a subsidiary of EPH, back in January 2016. EPH is a leading Central European energy group operating mainly in the Czech Republic, Slovakia, Germany, Italy, UK, Hungary and Poland.
