Enviva Partners LP has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed $100 million initial public offering (IPO). The Form S-1 registration was filed on Oct. 28.
Within its registration statement, Enviva sites a Hawkins Wright forecast that predicts global demand for utility-grade pellets will increase from 9.9 million tons per year in 2013 to 38 million tons per year in 2020, primarily as a result of increased demand in Northern Europe, South Korea and Japan. “Given the limited current supply available, a substantial amount of new production capacity and related infrastructure will be required to meet this demand,” said Enviva in the filing. “
According to the filing, the IPO pertains to Enviva Partners LP. Enviva Holdings LP is referred to as Enviva Partners’ sponsor, along with its wholly owned subsidiary Enviva MLP Holdco LLC. Enviva Partners GP LLC, a wholly owned subsidiary of Enviva Holdings LP, is referred to as the general partner of Enviva Partners LP.
While Enviva operates five pellet plants, including those in Wiggins Mississippi; Amory, Mississippi; Ahoskie, North Carolina; Northampton, North Carolina; and Southampton, Virginia, the S-1 form indicates Enviva Holdings LP will retain ownership of the Southampton facility.
In addition, Enviva Holdings LP is in the process of acquiring Green Circle Bio Energy Inc., which operates a plant in Florida. Enviva Holdings is expected to contribute that facility to Enviva Partners LP in connection to the IPO. According to the filing, following the close of the acquisition, the name of Green Circle Bio Energy will be changed to Enviva Pellets Cottondale LLC. As such, Enviva Partners LP is expected to own the Amory, Wiggins, Ahoskie, Northampton and Cottondale facilities upon the close of the IPO.
Enviva Holdings will give Enviva Partners right of first offer to acquire the Southampton plant, the Wilmington projects, and any other wood pellet production plants and associated deep-water marine terminals that it may develop in the future. The Wilmington projects refers to three new 500,000 metric ton per year pellet projects under development in near Wilmington, North Carolina.
Riverstone the main investor
Main investor in Enviva is Riverstone Holding. Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $27 billion of equity capital raised. We conduct buyout and growth capital investments in the exploration & production, midstream, oilfield services, power, and renewable sectors of the energy industry.
Riverstone manages the largest private equity fund dedicated exclusively to private renewable energy investment in the world. The company has committed $4.1 billion of equity capital to 18 companies, and Riverstone’s renewable energy management teams, many of which involve new start-up companies, all have a common theme: to develop incremental production of renewable energy resources on a global scale.
Carl L. Williams, (standing) is one of four representatives from Riverstone in the board of Enviva. John Keppler is a co-founder and the President and CEO of Enviva.