Enviva and GreenGasUSA Announce A 10-Year Renewable Natural Gas Offtake Agreement to Decarbonize Enviva’s Scope 1 Emissions
BETHESDA, Md. and CHARLESTON, S.C., October 20, 2021 – Enviva Partners, LP (NYSE: EVA) (“Enviva”) and GreenGasUSA, an integrated renewable natural gas (RNG) solutions provider, announced today a 10-year RNG offtake agreement to decarbonize natural gas-related emissions in Enviva’s operations. The agreement is expected to eliminate more than 64,000 metric tons of carbon dioxide (CO2) equivalent from the atmosphere every year, which equates to 14,000 passenger cars being removed from the road.
Enviva’s commitment underwrites a stand-alone GreenGasUSA project to install equipment that captures and treats methane currently being released directly into the atmosphere at a food processing facility in rural South Carolina. As part of the agreement, GreenGasUSA will transport the RNG directly to Enviva’s Hamlet plant to be utilized in its industry-leading emissions control equipment in place of fossil natural gas in the beginning of the third quarter of 2022. The elimination of direct methane emissions at the food processing facility and conversion of these gases into RNG will be one of the first “food waste to RNG projects” conducted in the U.S. Southeast. In fact, the methane captured and emissions eliminated as a result of this offtake agreement are expected to offset approximately 75% of all Enviva’s direct emissions from its manufacturing operations, or Scope 1 emissions, on an annual basis for the duration of the 10-year agreement.
“We are proud to partner with GreenGasUSA to minimize the use of fossil fuels in our Scope 1 emissions and execute on highly effective carbon-neutral strategies,” said Thomas Meth, Co-founder and Executive Vice President of Sales & Marketing at Enviva. “Selecting GreenGasUSA for this project was a natural choice as several of their agricultural partners are in close proximity to our existing operational infrastructure. The environmental benefits they provide to the communities they serve and their potential to grow and expand with us as a service provider underscores our excitement about this new collaboration.”
Studies have shown that methane released into the atmosphere is a highly potent greenhouse gas that is 85 times more impactful than CO2 over a 20-year life cycle. Capturing fugitive methane from wastewater facilities, landfills, agricultural activities, and other sources has been identified by the EPA as a key strategy to reduce greenhouse gases and slow global warming. In addition, RNG projects provide much needed investment and income in rural agricultural communities disconnected from infrastructure.
“Through GreenGasUSA’s innovative work with established local agribusiness industries, South Carolina is leading the way in carbon mitigation through methane capture. This new partnership reinforces a strong commitment to our environment and to rural South Carolina,” added South Carolina Commissioner of Agriculture Hugh Weathers.
“GreenGasUSA is grateful to work with Enviva on projects like this. Methane capture from agricultural sources is one of the most impactful things we can do to combat climate change. We are thankful for the leadership of Commissioner Weathers and our farming community for embracing these efforts,” said Marc Fetten, founder and CEO of GreenGasUSA. “Eliminating greenhouse gas emissions and creating new income streams for farmers continues to be very gratifying work. Industry leadership, such as Enviva’s commitment to carbon neutrality, is an enabling driver for these types of projects. We sincerely appreciate Enviva’s selection of GreenGasUSA as a decarbonization partner.”
Earlier this year, Enviva announced a Net-Zero Commitment that will reduce, eliminate, or offset all of its direct emissions by 2030. As part of this ambitious plan to cut carbon emissions from fossil fuels and improve energy efficiency, Enviva agreed to adopt innovative and improved lower-emission processes through investments in projects that result in real, additional, and third-party verified net-carbon reductions.
About GreenGasUSA Holdings, LLC:
Formed in 2019 by Marc Fetten, GreenGas provides low- and zero-emitting energy solutions to industrial, commercial and residential users committed to reducing their environmental footprint. This includes supplying compressed natural gas (CNG) as an alternative to higher-cost and higher-emitting fuels such as oil or propane; operation of a virtual pipeline fleet for CNG and RNG across the U.S.; production of RNG from a variety of waste sources; as well as pipeline injection services. GreenGas currently owns a natural gas injection point in Georgetown, South Carolina that serves as a primary renewable energy aggregation hub enabling farmers to participate in the renewable gas industry and providing income to an important sector in the U.S. economy.
Enviva (NYSE: EVA) is the world’s largest producer of industrial wood pellets, a renewable and sustainable energy source that is produced by aggregating a natural resource, wood fiber, and processing it into a transportable form, wood pellets. Enviva sells a significant majority of its wood pellets through long-term, take-or-pay off-take contracts with creditworthy customers in the United Kingdom, the European Union, and Japan. Enviva owns and operates 10 plants with a combined production capacity of approximately 6.2 million metric tons per year in Virginia, North Carolina, South Carolina, Georgia, Florida, and Mississippi. In addition, Enviva exports wood pellets through its deep-water marine terminals at the Port of Chesapeake, Virginia, the Port of Wilmington, North Carolina, and the Port of Pascagoula, Mississippi, and from third-party deep-water marine terminals in Savannah, Georgia, Mobile, Alabama, and Panama City, Florida.
To learn more about Enviva please visit our website at www.envivabiomass.com. Follow Enviva on social media @Enviva.
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