justin tait, manager sustainability europe · startup: 3rd party agreement storage: flat warehouse...

US Supply and Sustainability, market outlook and opportunities

Justin Tait, Manager Sustainability Europe

• Enviva

• The US SE wood basket

• Our approach to sustainable sourcing in the US

• What this means for market development

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CONTENT

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Amory

Location: Amory, MS

Startup: August 2010 (acquired)

Annual Production: 120K MTPY

Ahoskie

Location: Ahoskie, NC

Startup: November 2011

Annual Production: 375K MTPY

SouthamptonLocation: Southampton, VA

Startup: October 2013

Annual Production: 515K MTPY

NorthamptonLocation: Northampton, NC

Startup: April 2013

Annual Production: 525K MTPY

Sampson

Location: Sampson, NC

Startup: November 2016

Annual Production: 500K MTPY

Cottondale

Location: Cottondale, FL

Startup: May 2008 (acquired January 2015)

Annual Production: 720K MTPY

Greenwood (JV) Location: Greenwood, SC

Startup: 2018 (acquired)

Annual Production: 600K MTPY expected by 2019

Current Production Plants

Port of Mobile

Location: Mobile, AL, Cooper Marine & Timberlands ChipCo Terminal

Startup: 3rd Party Agreement

Storage: Flex barge storage with 45K+ MT of capacity

Port of Chesapeake

Location: Chesapeake, VA

Startup: November 2011

Storage: Dome storage with 90K MT of capacity

Port of Panama City

Location: Panama City, FL, Port Panama City

Startup: 3rd Party Agreement

Storage: Flat warehouse storage with 32K MT of capacity

Port of Wilmington

Location: Wilmington, NC, Enviva Port of Wilmington

Startup: 2016, under agreement with our Sponsor

Storage: Dome storage with 90K MT of capacity

Storage and Terminaling Assets

ENVIVA: LARGE FACILITY FOOTPRINT

Plants Currently Under Construction

Hamlet (JV)Location: Hamlet, North Carolina

Start up: H1 2019

Annual Production: 600K MTPY expected

Expected to begin operations H1 2019

ENVIVA CUSTOMERS

• Coal-to-biomass conversion projects

– Ørsted (formerly DONG Energy) coal-to-biomass

CHPs, Denmark

– Drax, UK

– Lynemouth, UK

– Engie Max Green & Les Awirs projects, Belgium

• Other customers include:

– MGT CHP, UK

– Dutch co-firing projects

– Martinique dedicated biomass electricity plant

• This represents total demand of around 3 million

metric tonnes of wood pellets

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US SE WOOD BASKET - PERSPECTIVE

WOOD PELLETS: A SMALL FRACTION OF U.S. WOOD USAGE

In 2017, wood

pellets accounted

for 2.7% of total

removals in the

U.S. South

Data provided by Forest2Market, March 2018

Inventory is still increasing. Southern

forests are growing faster than they

are being harvested

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THE THREE PILLARS OF BIOMASS SUSTAINABILITY

Certification Forest StewardshipTransparency

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TRACK & TRACE FOLLOWS EVERY TON OF PRIMARY WOOD BACK TO ITS ORIGIN IN THE FOREST OR AT A SAWMILL

TRANSPARENCY: 100% VISIBILITY INTO BIOMASS SUPPLY AND

SOURCING PRACTICES

What does that enable?

✓ Unparalleled detailed knowledge of

supply chain

✓ Proactive demonstration of how our

sourcing supports forest stewardship

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TRANSPARENCY: 100% VISIBILITY INTO BIOMASS SUPPLY AND

SOURCING PRACTICES.

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e

CERTIFICATION ENSURES MARKET ACCEPTANCE

Sustainable Forestry

Initiative (SFI)

▪ SFI Certified Sourcing

Certification

▪ SFI Chain of Custody

Certification

ENVIVA’S MANUFACTURING FACILITIES ARE CERTIFIED TO INDUSTRY-LEADING

FOREST AND BIOMASS SUSTAINABILITY PROGRAMS

Forest Stewardship

Council (FSC)

▪ FSC Chain of Custody

Certification

Sustainable Biomass Program+

American Tree Farm System

(ATFS)▪ Independently Managed Group

Programme for the

Endorsement of Forest

Certification (PEFC)

▪ PEFC Chain of Custody

Certification

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FOREST STEWARDSHIP DEMANDS VALUES-DRIVEN CORPORATE

SOCIAL RESPONSIBILITY

▪ Conserving working forests and sensitive bottomland ecosystems in VA and NC

▪ A $5 million,10-year grant program

▪ Grants delivered to conserve over 17,000 acres of bottomlands in first 2 years

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WOOD PELLET DEMAND CONTINUES TO GROW GLOBALLY

FUTURE MARKETS ARE LOCATED IN EUROPE AND ASIA

Source: Hawkins Wright Source: Hawkins Wright

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EUROPEAN MARKETS

Source: Aurora Energy Research1hydro, non renewable wastes, geothermal, oil

Current electricity and

heat production, TWh, and

energy technology mix

Geothermal

Oil

Hydro

Others1

Biomass & RES wastes

Solar

Wind

Gas

Coal

Nuclear

Germany

Poland

France

Italy

Netherlands

Power

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Powe Heat

Power Heat

Power Heat

Power Heat

Power Heat

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OVERVIEW OF JAPAN

Increasing demand in

Japan

Opportunities

Source: Hawkins Wright

▪ Japan’s operating biomass power generation capacity approved

under its feed-in-tariff (FiT) scheme reached 2.4 GWs in the

fiscal year ended March 31, 2018.

▪ Many FiT approved long-term projects are still looking for fuel

supply.

▪ Long-term demand of imported wood pellets continues to grow

as the government targets 6.0 to 7.5 GWs of biomass-fired

capacity by 2030, or demand for 15 to 20 million MTPY of

biomass.

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Justin TaitManager of Sustainability, EuropeMobile: +44 (0) 7904 224397Direct Dial: +44 1904 917352

Enviva Management UK LimitedClifton ParkMaple House, First FloorYORK, YO305PBwww.envivabiomass.comJustin.Tait@envivabiomass.com