Enviva Development Holdings, LLC, an affiliate of Enviva, LP , and JCE Group Aktiebolag, the sole owner of Green Circle Bio Energy, Inc., announced recently that they have signed a contract pursuant to which Enviva will acquire all issued and outstanding shares of Green Circle.
The acquisition is expected to close by the first quarter of 2015 and is subject to customary closing conditions.
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.
