WBOct21pgs_cs.qxp_Wood Bioenergy Magazine 9/13/21 10:49 AM Page 8
■ in the news Graanul Receives Big Apollo Transfusion Apollo Global Management, Inc., through funds managed by its affiliates, is acquiring a majority stake in Graanul Invest, the Estonia-based largest producer of wood pellets in Europe and one of the largest producers globally. Since its inception in 2003, Graanul has been pioneering some of the most advanced processes and technologies in the biomass and bioenergy industry and providing a critical baseload renewable energy resource. The company operates 12 wood pellet production plants located in the Baltics and U.S. The company also operates six combined heat and power plants in Estonia and Latvia and is one of the largest producers of renewable energy in the Baltic region, having generated more than 17% of all renewable bioelectricity in Estonia in 2020. The CHP plants power the company’s manufacturing operations. “In Apollo we will have a sophisticated strategic investor who is not only intimately familiar with our business, but also understands the complexities and the unique value opportunities present in the bioenergy space today,” comments Raul Kirjanen, Chairman and CEO of Graanul. “Our operations and activities have always been—and will continue to be—designed for and dedicated to creating a globally sustainable and renewable energy system to replace fossil fuel emissions. Our team and people, as well as our corporate structure and operations, are a highly valued foundation to the exciting growth ahead with Apollo. New capital and global connectivity will provide new international opportunities for Graanul and its employees as we build on the company’s many achievements together.” “With the accelerating energy transition in Europe and globally, baseload renewable energy sources such as biomass are a critical and enabling piece of the puzzle by pro-
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viding dispatchable electricity and heat to must-run facilities,” says Apollo principal Brad Fierstein. “Raul and the Graanul team are best-in-class in this industry and have done an excellent job scaling and positioning the business to play a critical role supporting this energy transition as a reliable supplier to its customers, with proven sustainability.” Geoffrey Strong, Senior Partner and Co-Head of Natural Resources and Infrastructure at Apollo, adds, “We believe Graanul is a unique energy transition platform from which to build around the once-in-a-generation shift in the European energy mix. We look forward to building on that success together with Raul and the team and continuing to grow the business organically and through attractive development opportunities in the biomass market.” The transaction is expected to close later in 2021. Apollo is a high-growth, global alternative asset manager with a focus on three business strategies: yield, hybrid and opportunistic. As of March 31, 2021, Apollo had approximately $461 billion of assets under management. Graanul Invest employs more than 500 across its pellets plants and combined heat and power. It is currently upgrading the former Texas Pellets (formerly German Pellets) industrial wood pellet plant in Woodville, Texas.
SPI, Seneca Deal Includes Power Plant Sierra Pacific Industries (SPI) is acquiring Oregon-based Seneca, combining two family-owned forest products businesses with strong historical roots on the West Coast. Founded in 1953, Seneca operates a 175,000 acre sustainably managed tree farm, two sawmill sites, and a biomass fueled power plant in Oregon. SPI is a leading lumber producer that manages more than 2.1 million acres of timberland in California and Washington and also operates multiple co-
generation plants, which produce power used at the mills and that is sold to local public utilities and service providers. The acquisition includes Seneca Sustainable Energy, which operates a 19.8 MW cogeneration facility just north of Eugene and sits adjacent to the Seneca sawmill. The site is strategically located with an ideal connection to the local power grid. The woody biomass used to fuel the cogeneration facility comes from Seneca Sawmill’s bark, sawdust and shavings, as well as forest biomass “logging residuals or slash” from Seneca Jones Timber Co.’s sustainably managed tree farm, located nearby in Oregon’s Coast and Cascade Ranges. One hundred percent of the renewable electricity generated by Seneca Sustainable Energy is sold to the Eugene Water and Electric
Seneca’s 19.8 MW cogeneration facility near Eugene
Board (EWEB). The power generated from this facility provides the annual energy needs of more than 13,000 family homes. “Aaron Jones (Seneca) and Red Emmerson (SPI) are both icons of the wood products industry. They were also friends and had a deep mutual respect for each other as industry leaders,” says Seneca CEO Todd Payne in reference to the founders of the respective companies. “This proposed transfer makes so much sense given the companies provide complementary products, and have shared family values and company culture.” Both SPI and Seneca have a strong focus on sustainable tree
Wood Bioenergy / October 2021
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