Image

The world’s largest biomass energy company near collapse

30 November 2023
This year has been a financial disaster for Enviva, the world’s largest producer of wood pellets for the biomass energy industry. With more than $250 million in losses to date and worsening results expected in the fourth quarter, the once high-flying company’s viability, by its own admission, is in grave doubt.

Also in question is where Enviva’s European Union and Asian customers will source the pellets they burn in their converted coal power plants and — without those pellets — how nations will meet their energy needs and their pledged Paris Agreement carbon emission cuts.

To many financial analysts who closely follow company performance, Enviva’s near collapse this month appears to have happened rapidly and suddenly. But did it?

The problems have been there for years. There are lots of issues, but they stem from fundamental challenges Enviva faces in wood costs and keeping its manufacturing plants operating at full capacity,” a former Enviva maintenance manager told Mongabay. “It’s all coming home to roost in a kind of cumulative way.”

In exclusive interviews with Mongabay, the former Enviva employee detailed critical problems he witnessed and grappled with as a top operations manager at two of Enviva’s 10 Southeast U.S. plants between mid-2020 and mid-2022. His insights help explain why Enviva is now in dire financial straits.

More >>

Source: Mongabay

Read More
Image

€150 m LVL and I-beam plant underway

Construction, the first sustainable construction factory of its kind in the Baltics and only the third in Europe, has begun operations with plans to produce €150 million of products a year for Scandinavia, North America, Australia, and major European markets. ...
Read more
Image

Steam rises again from Pan Pac

Almost a year since Cyclone Gabrielle flooded Pan Pac’s mill site at Whirinaki, steam has begun rising from one of the stacks. For nearly 50 years, Hawke’s Bay residents have been able to locate Pan Pac’s mill site by the ...
Read more
Image

Carbotech acquires Sawquip

Carbotech Group has announced the acquisition of Sawquip, a manufacturing company specializing in sawmill equipment. This acquisition allows Carbotech Group to expand its product range and offer innovative solutions for lumber production. Sawquip’s products, including log turners, chipping canters, and ...
Read more
Image

Scion joins Australian Advance Timber Hub

Scion has announced its formal membership in The Australian Research Council (ARC) Advance Timber Hub. This five-year, $16.5 million research initiative was recently launched at The University of Queensland, Australia, on January 31st, in the presence of industry leaders, academic ...
Read more
Image

NZ forestry industry establishing pan sector body

Ten organisations have signed an accord establishing as a pan sector body. Called the NZ Forest & Wood Sector Forum (NZFWSF), NZ sector associations will engage on issues of common interest or concern to the national industry and act as a ...
Read more
Image

Investment in Chilean wood alternative start-up

Chilean pulp producer Empresas CMPC SA is betting on a local startup that is working to create a wood alternative for concrete and steel in the construction industry. CMPC Ventures, CMPC’s venture capital division, led a $5.2 million investment in ...
Read more