Enviva's operations have not been significantly impacted by the outbreak of Covid-19, according to the company. In a letter to stakeholders, John Keppler, chairman and CEO of Enviva Partners announced that the company's liquidity remains robust.
"As critical baseload and dispatchable renewable energy producers, our customers require our product now more than ever," Keppler commented. "Although the current Covid-19 environment remains fluid and uncertain, we believe the flexibility and resiliency of our operations, the designation of our business as a critical infrastructure by government and authorities, and the decisions we are making to protect our people and our communities, will enable us to continue to safely, stably and reliably maintain production levels and deliveries.
"Our business is built on long-term contracts with fixed volumes and fixed pricing that are not impacted by crude oil, natural gas, or other energy commodity prices. We believe our operations and business model remain well-positioned to continue our track record of sustainably growing distributions to our unitholders."
In the US, government-issued guidance recognises biomass energy, forestry and wood products as "industries essential to continued critical infrastructure viability", according to Enviva. To ensure operations continue to run smoothly, Keppler said: "If needed, we have contingency and business continuity plans in place we believe would mitigate the impact of potential business disruptions."
Discussing changes to distribution or capital investments, Keppler said that while some companies have had to make cuts in these areas due to "global instability", he does not believe Enviva will have to take such measures, given the "fully contracted nature" of the business. He said: "We do, however, remain vigilant about the unfolding global crisis and continue to monitor and manage the impact on our business of potential health, safety and other risks associated with the Covid-19 pandemic."
In addition to focusing on maintaining operations, Enviva is also supporting communities during the pandemic. As a result of school closures, the company is providing meals to underserved students and funding local food banks. It is also providing meals and boxed food deliveries to support hospital personnel, and, in its rural communities, Enviva is providing additional connectivity to "facilitate telework and online school activities" for families.
Closing the letter, Keppler said: "I am proud and grateful for the incredible work of the Enviva team and I want to personally thank each one of our associates for their hard work and education. The work we do ensures our customers receive the fuel they need to keep their critical operations going. Our role has never been more important. That is a privilege and a responsibility."