Woody biomass set to remain a “renewable energy source” under REDIII
The biomass producer stated the agreement's final text has yet to be publicly released, but it understands the agreement will not impose restrictions on primary wood biomass.
Instead, it will be counted as 100% renewable and zero-rated in the EU Emissions Trading System (EU ETS), provided sustainability criteria are fulfilled, Enviva understands.
The company went on to say that the agreement is also expected to include assurances that electricity-only plants already receiving subsidies will continue to do so, (meaning Enviva’s existing off-take contracts are not expected to be impacted).
There is also likely to be continuing availability of financial support to electricity-only installations where bioenergy carbon capture and storage (BECCS) is used, and accessible financial support for all other end uses of woody biomass.
Enviva does not expect the agreed final text of the Directive to be available for a number of weeks, and the next step is for the agreement to be formally endorsed by the Council and Parliament before entering into EU law.
“Today’s REDIII agreement is the last major step towards the end of an 18-month process that is now drawing to a favourable conclusion for the environment,” said Thomas Meth, president and CEO of Enviva.
“While there will be some conjecture over the coming weeks, based on information that we have received thus far, I am fully confident that the final text will enable our business to continue to support the EU's journey to Net Zero and will strengthen the platform for Enviva’s growth, especially in light of current high carbon prices.
"Reputable scientific organisations, including The Intergovernmental Panel on Climate Change (IPCC), show that bioenergy is integral to achieving global climate goals, and I am delighted to hear that this was acknowledged and reflected in the REDIII agreement,” concluded Meth.