Enviva bankruptcy fallout ripples through biomass industry, U.S. and EU

By Justin Catanoso
Mongabay
April 2, 2024
Category: Carbon, Climate & Bioenergy
Region: United States, US East, International

In March, Enviva, the world’s largest woody biomass producer for industrial energy, declared bankruptcy. That cataclysmic collapse triggered a rush of political and economic maneuvering in the US, and in Europe. …While Enviva publicly claims it will survive the bankruptcy, a whistleblower in touch with sources inside the company says it will continue failing to meet its wood pellet contract obligations, and that its production facilities — plagued by chronic systemic manufacturing problems — will continue underperforming. Enviva and the forestry industry appear now to be lobbying the Biden administration, hoping to tap into millions in renewable energy credits under the Inflation Reduction Act — a move environmentalists are resisting. …Meanwhile, some EU nations are scrambling to find new sources of wood pellets to meet their sustainable energy pledges under the Paris agreement. The UK’s Drax, an Enviva pellet user, is positioning itself to greatly increase its pellet production in the U.S. South.

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