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Norden signs nine-year contract with American Enviva

Norden has signed one of its ten biggest cargo contracts ever, a nine-year contract with American Enviva, to transport wood pellets from Virginia in the United States to Europe. The deal alone raises the company's dry bulk coverage by six percent.

Photo: Rederiforeningen

The market for biomass fuel transportations has long been a niche market relied on by several Danish dry bulk shipping companies. Now, Norden has signed a nine-year contract to transport biomass fuel in the form of wood pellets for US-based company Enviva LP, according to Norden's newsletter Norden News, published tomorrow, Thursday.

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The contract is one of the ten largest cargo contracts ever for the company, and means that Norden will handle the transportation from Virginia in the US to ports in both Great Britain and the European mainland.

Increases coverage by six percent

”This contract reflects our strategy for the Dry Cargo Department. Our target is to increase the volume, and we aim at securing growth in the contractually secured cargo volumes by entering into contracts with good, solid commodity and mining companies, industrial groups and energy producers. We look very much forward to the cooperation with Enviva, which has a strong position on the global biomass market,” says Ejner Bonderup, head of dry bulk at Norden.

The contract includes the transportation of wood pellets from the Enviva port in Chesepeake, Virginia to, among other destinations, the biggest powerplant in Britain, Drax Power Station in North Yorkshire, which is in the process of adapting its boilers to burn biomass instead of coal.

The Enviva contract increases the dry bulk segment's total coverage by six percent, and the total coverage of Handymax in dry bulk is increased by 20 percent in the same period.

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