Although the final text of the agreement has yet to be released publicly, the Company also understands that, encouragingly, the agreement does not impose restrictions on “primary woody biomass,” which will be counted as 100 percent renewable and zero-rated in the EU Emissions Trading System (EU ETS), provided sustainability criteria are fulfilled.
The agreement is also expected to include: assurances that electricity-only plants already receiving subsidies will continue to do so, meaning Enviva’s existing off-take contracts are not expected to be impacted; continuing availability of financial support to electricity-only installations where Bioenergy Energy Carbon Capture and Storage (BECCS) is used (this is a pivotal technology for reaching Net Zero and a key focus for many of Europe’s power generators); and the availability of financial support for all other end uses of woody biomass, which should provide further tailwinds to Enviva’s continued growth in combined heat and power, hard-to-abate sectors, and biofuels.
“Today’s REDIII agreement is the last major step towards the end of an 18-month process that is now drawing to a favourable conclusion for the environment,” said Thomas Meth, President and CEO of Enviva. “While there will be some conjecture over the coming weeks, based on information that we have received thus far, I am fully confident that the final text will enable our business to continue to support the EU’s journey to Net Zero and will strengthen the platform for Enviva’s growth, especially in light of current high carbon prices”.
“Reputable scientific organizations, including The Intergovernmental Panel on Climate Change (IPCC), show that bioenergy is integral to achieving global climate goals, and I am delighted to hear that this was acknowledged and reflected in the REDIII agreement,” concluded Meth.About Enviva
Enviva Inc. (NYSE: EVA) is the world’s largest producer of industrial wood pellets, a renewable and sustainable energy source produced by aggregating a natural resource, wood fibre, and processing it into a transportable form, wood pellets. Enviva owns and operates ten plants with a combined production capacity of approximately 6.2 million metric tons per year in Virginia, North Carolina, South Carolina, Georgia, Florida, and Mississippi, and is constructing its 11th plant in Epes, Alabama. Additionally, Enviva is planning to commence construction of its 12th plant near Bond, Mississippi.