Enviva Inc. announced the signing of a new 12-year, take-or-pay off-take contract with an existing European customer to provide wood pellets to be used for industrial heat generation. Deliveries are expected to commence in 2026, with Enviva supplying 60,000 metric ton per year (“MTPY”), subject to certain conditions precedent.
In addition, Enviva is progressing site selection alternatives and binding supply contracts with its U.S.-based sustainable aviation fuel (“SAF”) partner, and Enviva expects to be in a position to announce the contract’s first phase of development by the 4Q of this year.
Negotiations on recently announced memorandums of understanding (“MOU”) in Europe are also continuing to progress smoothly. Over the next three to six months, Enviva expects to convert several of these MOUs into more than 2 million MTPY of new, binding, long-term take-or-pay off-take contracts principally supplying industrial sectors and heat markets around the globe. Many of these contracts are being prepared for final execution and are expected to start deliveries as early as 2023, ramping to peak delivered volumes by late 2025 or early 2026. On average, these contracts are expected to have durations between 10 and more than 15 years and contemplate deliveries to jurisdictions including the Netherlands and Germany.
Enviva is a leading global energy company specializing in sustainable wood bioenergy.
