Enviva Thanks VA DEQ for the Opportunities to Hear from Stakeholders in Permitting Process

BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP, the world’s largest producer of wood pellets, which provide low-carbon, renewable power, issued a statement today thanking the Virginia Department of Environmental Quality (DEQ) for their work to ensure that residents’ and other interested parties’ voices were heard during an extensive public comment period as well as at tonight’s public hearing held at the Paul D. Camp Community College. The comment period, which concludes on September 27^th, and tonight’s hearing, are part of a permit modification process initiated by Enviva’s request to voluntarily increase air quality controls at its Southampton wood pellet production plant in connection with its planned production increase and increase in softwood utilization.

Enviva Chairman & CEO John Keppler issued the following statement:

“On behalf of the entire company, I want to express genuine gratitude to the Virginia DEQ for their overwhelming commitment to ensuring that stakeholders in and around our Southampton wood pellet plant had ample opportunities to express their views about our permit request which goes above and beyond the current air quality standards.”

“This is a critical time for renewable wood energy. The UN Intergovernmental Panel on Climate Change has stated definitively that biomass is a required part of an all-in renewable energy solution on climate change.”

“As we grow to meet the increasing global demand for sustainable low-carbon biomass fuel, we will continue to make substantial investments in environmental control technology, reflecting our strong commitment to the communities where we live and work. This permit application is part of that investment. Enviva will continue to not only meet the requirements of the Clean Air Act and state and local standards – we will work to exceed those standards.”

Economic analysis data indicates that Enviva’s presence in the state of Virginia contributes over $125.5 million annually in regional economic impact and supports approximately 450 direct and indirect jobs. According to the United States Census Bureau, the number of families in Southampton County living below the poverty rate has decreased by over 12 percent since Enviva’s Southampton plant opened.

About the Southampton permit:

In consultation with the Virginia DEQ, Enviva requested modifications to the air permit for the Southampton plant that will allow it to:

• Install additional air emission controls equipment to further minimize air emissions;
• Increase the permitted production volume by about 245,000 metric tons of pellets per year; and
• Increase the permitted percentage of softwood (pine).

Additional background information on the permits and Enviva’s operations:

• We have made a commitment to voluntarily install additional air emissions control equipment that we believe is above and beyond what is required under the Clean Air Act for this type of permit.
• The new air quality control measures will ensure the company meets or exceeds all regulations while improving the efficiency of the plant. The Southampton plant will be subject to stringent testing on a regular basis by a third-party auditor.
• Enviva conducted due diligence to confirm that the plant’s sourcing area has commercially available low-value wood that meets its strict sustainability requirements in sufficient qualities to supply the plant at the proposed increased production level.
• Enviva’s Responsible Sourcing Policy requires that the company only source low-value fiber from tracts that will be replanted.
• The request to increase the percentage of pine will provide greater flexibility in Enviva’s sourcing while allowing it to meet customer demands for wood pellets with higher energy value.

Additional Background on Enviva and Renewable Wood Energy

• Bioenergy is part of an all-in strategy to reduce carbon emissions and limit dependence on fossil fuels. Biomass energy offers a 74-85% lifecycle reduction of greenhouse gas emissions compared with coal. Power generation using biomass also provides a reliable, clean source of energy that complements the intermittency of wind and solar energy, enabling a stable grid without having to rely on fossil powered backup.
• Global demand for wood pellets is growing as countries around the world seek to fight climate change and meet their renewable energy and carbon reduction targets by reducing the use of coal and other fossil fuels for power generation. From 2012-2017, the European energy market saw a 55 percent decrease in coal consumption and a 98 percent increase in wood pellet demand. Working to meet this demand, Enviva’s pellet deliveries to Europe have increased by 400 percent in that same time period.
• American forest inventories are increasing every year. Today, in the U.S. Southeast private forest owners are growing 40% more wood than they remove every year. Only 2% of the working forests in the Southeastern U.S. are harvested each year, while the remaining 98% continue to grow and store carbon. Working forests thrive when managed sustainably. Our business plays a crucial role in helping ensure the protection and growth of forests. Enviva does not source from forests that will be converted to another land use.
• U.S. Forest Service data shows that both forest area and inventory are increasing in the sourcing regions for Enviva’s Southampton plant, and in fact there is a clear upward trend during the period since we started operations.
• The key to keeping forests as forests is strong demand for forest products – including the additional value of being able to sell low-value wood for bioenergy. Additional demand raises the value landowners can get from keeping their land as managed forests. Absent strong demand, landowners have the incentive to convert their land for a higher return. That could mean a farm, a housing development, or a strip mall.
• Enviva provides landowners with a key market for their low-value wood – including “thinnings,” limbs, tops, or crooked and knotted trees that would otherwise not get used for lumber or other higher value products. Our business plays a crucial role in helping ensure the protection and growth of forests.
• Enviva is certified to the stringent standards of the world’s foremost forestry organizations, such as the Sustainable Biomass Partnership (SBP), Forest Stewardship Council (FSC), the Program for the Endorsement of Forest Certification (PEFC), and the Sustainable Forestry Initiative (SFI). These independent forest certification programs provide a consistent, verifiable, and transparent framework for evaluating the sustainability of a company’s operations, from forest to product. We believe that landowner certification of forestland is a good thing, and so we pay more for fiber from certified forests. We engage in ongoing landowner outreach and education, and we make direct investments to support certifications of forestlands. As we continue working to increase the total percentage of lands certified, we also ensure that non-certified fiber comes from responsible sources.
• Enviva has also developed “Track & Trace®,” a leading-edge sustainable sourcing program, which provides transparent, publicly available data about Enviva’s sourcing. Track & Trace® allows us to specifically identify the source of our fiber to its origin in the forest or sawmill and to further monitor and audit our procurement activities. As part of this program we pay particular attention to land use change, use and effectiveness of Best Management Practices, wetlands, biodiversity, and certification status.

About Enviva Partners, LP

Enviva Partners, LP (NYSE: EVA) 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 seven plants with a combined production capacity of over 3.5 million metric tons of wood pellets per year in Virginia, North Carolina, 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 Mobile, Alabama and Panama City, Florida.

To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com.