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