Enviva plans to double pellet capacity to 13 million tons a year

Article by Philipp Matzku (adapted for; translated by Eva Guzely) | 31.01.2022 - 10:04

Enviva wants to invest US-$200 to US-$250 million (€180 to 224 million) in the construction of six new pellet mills. Each mill is going to have an annual production capacity of 1.1 million tons, which is 45% more than the current output of 750,000 tons a year.

Enviva already owns eight pellet mills on the East Coast. In the first mill, in the so-called Pascagoula Cluster in Lucedale, Mississippi, output is to be raised by 300,000 tons to 1 million tons a year by 2023. In the first half of this year, Enviva plans to start building the mill in Epes, Alabama. In 2024, the company wants to put the third and fourth mills of the Pascagoula cluster into operation. By 2025, all mills in the cluster are scheduled to be at full capacity.

Production is to start in another pellet mill in Savannah, Georgia in 2025. One year later, the mills in Wilmington, North Carolina and Chesapeake, Virginia are scheduled to start producing pellets.

Furthermore, the US company wants to extend its business in the biofuel segment and plans to sign long-term contracts (14.5 years) with industrial segments for which decarbonization is more challenging (steel, cement, lime and biofuels). Enviva’s main export markets are Great Britain, the EU (Germany and Poland) and Asia (Japan, Taiwan, South Korea).