Enviva Partners, LP ("Enviva"), a leading renewable energy company specializing in sustainable wood bioenergy, today announced that its first shipment of sustainable wood pellets is on its way from Port Panama City in Florida to Japan's Iwakuni Port.
"Worldwide demand for renewable solutions that can help mitigate climate change right now continues to grow immensely," said John Keppler, Enviva Chairman and Chief Executive Officer. "We are very proud of our operations in the Southeast and our export terminals that enable us to safely, stably, and reliably deliver a product that displaces coal and helps countries like Japan meet their climate change goals in the most cost-efficient way while ensuring reliable and dispatchable energy generation."
"We are honored by the trust and responsibility our Japanese customers have placed in us to be the core supplier of renewable fuels to such an important project mitigating climate change and are privileged to be a part of their success," Keppler added.
Enviva's first shipment carried approximately 28,000 metric tons of wood pellets made from low-value wood sourced in the U.S. Southeast. Sustainable bioenergy provides a viable solution to reducing greenhouse gas emissions that is available today and will enable Japan to meet its recently announced goal of being carbon-neutral by 2050. By using sustainable wood pellets instead of coal, heat and power producers in Japan will be able to reduce carbon emissions by more than 85% on a lifecycle basis, providing a significant reduction in emissions for the world's fifth-largest greenhouse gas emitter while also providing grid stability.
"The Port of Panama City and Enviva's first shipment of sustainable biomass to Japan is a major milestone for Florida's Second Congressional District," said Florida Congressman Neal Dunn, M.D. "This partnership between Enviva and the Port of Panama City will not only boost the local and state economy; it will provide alternatives to conventional power sources internationally."
"The Port of Panama City is proud to be a part of Enviva's sustainable supply chain, which takes low-value wood from private landowners in Florida and ships it to customers around the world who use it to generate clean, renewable energy for tens of thousands of homes and businesses," said Wayne Stubbs, executive director of the port.
This week's shipment marks the first of many to a global economic powerhouse where demand for a long-term supply of sustainable biomass continues to grow as the economy moves away from fossil fuels. Japan's feed-in tariffs (FiTs) for renewable energy, along with the government's commitment to shut down or decarbonize 100 coal plants, have enabled more than 3 million tons of long-term demand for wood pellets to be contracted by Enviva. Most of such agreements with the company's Japanese customers extend to 2040 and beyond.
To learn more about the voyage of a Southeastern U.S. wood pellet, take a look at our video, Lifecycle of a wood pellet, here.
About Enviva Partners, LP
Enviva Partners, LP (EVA) - Get Enviva Partners LP Report is a publicly traded master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets. The Partnership sells a significant majority of its wood pellets through long-term, take-or-pay off-take contracts with creditworthy customers in the United Kingdom and Europe. The Partnership owns and operates nine plants with a combined production capacity of approximately 4.9 million MTPY in Virginia, North Carolina, South Carolina, Georgia, Mississippi, and Florida. In addition, the Partnership exports wood pellets through its marine terminals at the Port of Chesapeake, Virginia and the Port of Wilmington, North Carolina and from third-party marine terminals in Savannah, Georgia, Mobile, Alabama, and Panama City, Florida. To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com and follow us on social media @Enviva.
Cautionary Note Concerning Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward‑looking statements are based on the Partnership's current expectations and beliefs concerning future developments and their potential effect on it. Although management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Partnership will be those that it anticipates. All comments concerning the Partnership's expectations for future revenues and operating results are based on the forecasts for its existing operations and do not include the potential impact of any future acquisitions. The Partnership's forward-looking statements involve significant risks and uncertainties (some of which are beyond the Partnership's control) and assumptions that could cause actual results to differ materially from the its historical experience and its present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: (i) the volume and quality of products that it is able to produce or source and sell, which could be adversely affected by, among other things, operating or technical difficulties at the Partnership's wood pellet production plants or deep-water marine terminals; (ii) the prices at which the Partnership is able to sell the its products; (iii) the Partnership's ability to successfully negotiate and complete and integrate drop-down and third-party acquisitions, including the associated contracts, or to realize the anticipated benefits of such acquisitions; (iv) failure of the Partnership's customers, vendors, and shipping partners to pay or perform their contractual obligations to it; (v) the Partnership's inability to successfully execute its project development, expansion, and construction activities on time and within budget; (vi) the creditworthiness of the Partnership's contract counterparties; (vii) the amount of low-cost wood fiber that it is able to procure and process, which could be adversely affected by, among other things, disruptions in supply or operating or financial difficulties suffered by the Partnership's suppliers; (viii) changes in the price and availability of natural gas, coal, or other sources of energy; (ix) changes in prevailing economic conditions; (x) unanticipated ground, grade or water conditions; (xi) inclement or hazardous environmental conditions, including extreme precipitation, temperatures, and flooding; (xii) fires, explosions, or other accidents; (xiii) changes in domestic and foreign laws and regulations (or the interpretation thereof) related to renewable or low-carbon energy, the forestry products industry, the international shipping industry, or power, heat or combined heat and power generators; (xiv) changes in the regulatory treatment of biomass in core and emerging markets; (xv) the Partnership's inability to acquire or maintain necessary permits or rights for the Partnership's production, transportation, or terminaling operations; (xvi) changes in the price and availability of transportation; (xvii) changes in foreign currency exchange rates or interest rates, and the failure of the Partnership's hedging arrangements to effectively reduce its exposure to the risks related thereto; (xviii) risks related to the Partnership's indebtedness; (xix) the Partnership's failure to maintain effective quality control systems at its production plants and deep-water marine terminals, which could lead to the rejection of the Partnership's products by its customers; (xx) changes in the quality specifications for the Partnership's products that are required by its customers; (xxi) labor disputes; (xxii) the Partnership's inability to hire, train, or retain qualified personnel to manage and operate its business and newly acquired assets; (xxiii) the effects of the exit of the United Kingdom from the European Union on the Partnership's and its customers' businesses; (xxiv) the Partnership's inability to borrow funds and access capital markets; and (xxv) viral contagions or pandemic diseases, such as the recent outbreak of a novel strain of coronavirus known as COVID-19.
For additional information regarding known material factors that could cause the Partnership's actual results to differ from projected results, please read our filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Annual Report on Form 10-K and the Quarterly Reports on Form 10-Q most recently filed with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Partnership undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information or future events or otherwise.
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