<article><p class="lead">US wood pellet producer Enviva has taken a step forward with developments for its planned <a href="https://direct.argusmedia.com/newsandanalysis/article/1991517">700,000 t/yr Epes pellet production facility</a> in Alabama, announcing that the plant will be operational in early 2023.</p><p>The company also purchased 307 acres of land at the port of Epes industrial park in December, signalling positive intent towards taking a final investment decision (FID). Enviva estimated that it will invest $175-200mn in the project.</p><p>The proposed biomass fired plant "will be a near-carbon copy of Enviva's Lucedale, Mississippi, plant, which is currently under construction," Enviva told <i>Argus</i>.</p><p>Enviva secured a permit from the <a href="https://direct.argusmedia.com/newsandanalysis/article/2026303">Alabama Department of Environment Management</a> in December 2019, allowing the construction of the Epes pellet plant.</p><p>The producer has signed about 3.4mn t/yr worth of long-term take-or-pay wood pellet contracts with Japanese offtakers, with deliveries scheduled to start in 2021-25.</p><p>Enviva has an estimated production capacity of 5mn t/yr of wood pellets globally, making up about 70pc of total US wood pellet exports last year. Enviva's total global contracted wood pellet supply is expected to grow to almost 7mn t/yr by 2025.</p><p class="bylines"><i>By Gabriella Twining</i></p></article>
