Enviva signs 10-year take-or-pay off-take fuel supply contract

Enviva announced the signing of a new 10-year take-or-pay off-take fuel supply contract with an existing European customer, extendable for up to five years. Enviva expects to supply 800,000 metric tons of industrial-grade wood pellets per year, with deliveries expected to commence during 2027, subject to certain conditions precedent. Terms and conditions related to this new contract reflect the strong pricing environment for woody biomass and are generally in line with other recently executed long-term contracts. Enviva’s total weighted-average remaining term of take-or-pay off-take contracts is approximately 14 years, with a total contracted revenue backlog of now over $23B. This contracted revenue backlog is complemented by a customer sales pipeline exceeding $50B, which includes contracts in various stages of negotiation.