Enviva to build USD-250m wood pellet plant in Mississippi

US wood pellets maker Enviva Inc (NYSE:EVA) plans to invest some USD 250 million (EUR 229m) to build a production plant in Bond, Mississippi to cater to the growing international demand for renewable resources, it announced on Tuesday.

The new facility will be built in Stone County and will have the capacity to produce more than 1 million metric tonnes of wood pellets per year, using low-value and low-grade softwood and hardwood fiber that is sustainably sourced within 75 miles of the site. It will be Enviva’s third such plant in Mississippi, where the company also has a deep-water marine terminal at the Port of Pascagoula.

Construction work is seen to start early next year and to be completed within 18 months. The plant is already fully contracted under long-term take-or-pay supply contracts with customers around the world.

“Markets for our renewable products have been growing rapidly as countries look for new ways to reduce their dependence on coal, natural gas, and other fossil fuels for heat and power generation. Demand from manufacturers driving to reach ‘net-zero’ by decarbonizing industrial production of steel, cement, lime, and sustainable aviation fuel is also growing rapidly for us,” said John Keppler, Enviva’s chairman and CEO.

The newly announced project is part of Enviva’s growth strategy to double production capacity from the current 6.2 million tonnes to about 13 million tonnes annually over the next five years.

(USD 1.0 = EUR 0.915)

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