Enviva Continues Growth Expansion
Industrial wood pellet producer Enviva reported several operational developments in its second quarter statement.
John Keppler, chairman and CEO, noted the company recently commenced construction of its plant in Epes, Ala.; is making swift progress on plans to start construction of a new plant in Bond, Miss.; and has recently filed for a permit for expansion of its Ahoskie, NC.
Enviva also emphasized that EU policymakers are currently updating the Renewable Energy Directive (RED III), which was put in place in 2009 and revised in 2018 (RED II), and establishes common rules and targets for the development of renewable energy across all sectors of the economy to help the EU reach its ambitious energy and climate goals. These were increased by the European Green Deal with the goal of reducing net greenhouse gas emissions by 55% by 2030.
RED III is part of a package amending or creating 15 climate and energy laws to increase and accelerate climate mitigation, which includes reviewing existing criteria for sustainable biomass. The final law will be a negotiated piece of legislation reflecting a compromise position of the “trilogue” which includes the EU Parliament, EU Council of Ministers (“Council”), and EU Commission. Both the Council and the Commission have published proposals and positions on RED III which outline which renewable energy sources qualify for subsidies and keep the biomass sustainability framework from RED II largely intact. The proposal from the EU Parliament will likely be finalized this fall in a plenary session.
According to leading scientific advisory panels and policy makers, in order for the EU to reach their objective of climate neutrality by 2050, biomass use in power and heat plants alone will need to double.
Enviva is making solid progress on its path to more than double production capacity over the next five years, from 6.2 million MTPY to approximately 13 million MTPY. Enviva’s Lucedale, Miss. plant, the first plant in Enviva’s “Pascagoula Cluster,” continues to ramp production, and is on track to reach nameplate capacity of 750,000 MTPY by the end of this year. Recently, Enviva commenced construction of the fully contracted 1.1 million MTPY plant in Epes, Ala., the second plant in the Pascagoula Cluster. The third plant will be built in Bond Miss., subject to receiving the necessary permits.
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