Enviva

Enviva is a wood pellet manufacturer that processes timber into compressed biomass pellets primarily used as a substitute for coal in power plants. The company operates 10 manufacturing plants across the US Southeast, from Virginia to the Gulf Coast. In 2023, Enviva shipped 5 million metric tons of pellets overseas, down from 6.2 million metric tons in 2022. The company's pellet manufacturing process involves grinding whole trees, primarily consisting of 80% pine and 20% hardwood, into pellets. The pellets are then exported through port facilities to customers in Europe and Asia who burn them for electricity generation. In March 2024, Enviva filed for Chapter 11 bankruptcy protection with USD 2.6 billion in debt, amid significant production challenges and mounting losses. Production issues stemmed from using carbon steel equipment which degraded rapidly when processing pine wood due to its resin content. By November 2023, the company had reported USD 250 million in losses, with 25% attributed to equipment damage and repairs. Only two of its ten plants, located in Florida and Georgia, were operating at maximum production capacity as of early 2024.