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Enviva announce wood pellet deal with Mitsubishi

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In a statement released on Wednesday, Enviva announced it is to be the sole supplier of imported wood pellets to Mitsubishi’s Japanese biomass plant.

As one of the world’s largest producers of wood pellets, Enviva owns and operates wood pellet processing plants and deep-water export terminals in the South-eastern United States.

Enviva announced that it is set to start work with global automotive company Mitsubishi in late 2022 and will continue for at least 15 years. After previously working together on a take-or-pay off-take contract to supply 630,000 metric tons per year (MTPY) of wood pellets, Mitsubishi agreed to a firm deal. The new agreement makes Enviva the exclusive, long-term imported biomass fuel supplier to the Aioi Bioenergy Corporation, a joint venture between Mitsubishi Corporation Power and Kansai Electric Power Co. The venture sees both companies working together to convert an existing oil-fired power plant to biomass.

The new contracts state that Enviva will supply approximately 180,000 and 450,000 MTPY of wood pellets to the Japanese plant.

Chairman and Chief Executive Officer of Enviva John Keepler states, “Our partners at Aioi Bioenergy and Mitsubishi Corporation are at the forefront of Japan’s commitment to reducing the impacts of climate change. We are privileged and honoured to be the sole source of supply of sustainable wood pellet fuel to the Aioi facility, one of the largest dedicated biomass projects in Japan announced to date, and we look forward to helping Mitsubishi and Kansai deliver on the promise of renewable energy.”