Biomass Giant Enviva Buying Two Pellet Plants in U.S. Southeast

Enviva Partners LP, the world’s biggest producer of wood pellets for power plants, has agreed to buy three facilities in the U.S. Southeast in deals that also include five long-term contracts to supply customers in Japan.

The company is investing $375 million to acquire a pellet plant and an export terminal in Georgia from Germany’s Innogy SE and another pellet facility in South Carolina from its sponsor Enviva Holdings, according to a statement Thursday.

The deals reflect the increasing global demand for wood biomass that can be burned to produce electricity. In Europe, where the fuel is considered carbon ...