Dampskibsselskabet NORDEN A/S, a global independent shipping company founded in 1871, has contracted with the Enviva family of companies to transport 11 million tons of wood pellets from the U.S. to Europe over a 15-year period, one of the largest shipping agreements in NORDEN’s 145-year history.
NORDEN recently concluded two separate contracts with the Enviva family of companies to ship wood pellets from Enviva’s production facilities in the Southeast U.S. to electric power generating facilities in Europe, which use the pellets as fuel. One contract is a nine-year agreement with Enviva, LP, an affiliate of Enviva Partners, LP (NYSE: EVA), that begins in 2018. The other is a 15-year agreement with Enviva Wilmington Holdings, LLC that begins in 2019.
NORDEN began offering transatlantic shipping services to the Enviva family of companies in 2012. The two recent contracts mark a significant expansion of this relationship.
”Enviva is the world’s largest producer of wood pellets and we are proud that they have trusted us to deliver even more of their products to customers across the Atlantic,” said Jan Rindbo, Chief Executive Officer of NORDEN. “The global market for sustainable wood bioenergy is growing as more electric power generating plants convert from coal to wood pellets in order to reduce their lifetime carbon emissions. Our successful collaboration with Enviva has enabled us to play a leading role in this market.”
NORDEN has eight offices around the world and operates a fleet of 255 dry cargo vessels and 40 tankers. The Enviva contracts are expected to be lifted on Supramax-class dry cargo ships, of which NORDEN operates about 90.