Enviva announces feedstock agreement with SAF producer

By Erin Voegele | March 01, 2023

U.S.-based wood pellet producer Enviva Inc. announced on March 1 it has signed a new take-or-pay off-take contract with an unnamed U.S.-based bioenergy facility to provide feedstock for the production of biofuels, including sustainable aviation fuel (SAF).

Enviva announced the contract as part its fourth quarter earnings release. According to Enviva, the contract is with an existing global customer, and is related to providing feedstock to a U.S.-based bioenergy facility, with deliveries of approximately 60,000 metric tons per year expected to begin in 2025.

Within the past year and a half, Enviva said it has signed three SAF-related contracts that represent approximately 1.9 million metric tons per year of biomass supply at peak run rates. In addition, the company has delivered test deliveries to two major oil companies in Europe that are constructing biorefineries and coprocessing biobased feedstock in their existing refineries.

Enviva said it expects that meaningful SAF volumes will materialize in Europe slightly later than in the U.S. In addition, the company said it is also in discussions with interested biofuel producers in Asia.

“The global addressable market for SAF and other biofuels is immense, and with the incremental opportunities that Enviva is currently pursuing, there is a visible path forward for significant future capacity additions and expansions driven by this use case alone,” Enviva said in a statement.

In January 2022, Enviva announced it signed a memorandum of understanding (MOU) with an unnamed U.S.-based customer that plans to convert Enviva’s woody biomass into crude oil used to produce SAF.  

Several months later, in September 2022, Enviva announced an agreement with Alder Fuels to supply up to 750,000 metric tons per year of woody biomass to a green crude production facility under development by Alder Fuels in the southeastern U.S. Green crude produced by the proposed facility would be converted into SAF.