Tag Archives: Dogwood Alliance

Mongabay: Enviva bankruptcy fallout ripples through biomass industry, U.S. and EU

Tractor-trailers each loaded with 40 tons of wood chips waiting at Enviva’s pellet mill in Ahoskie, North Carolina, which opened in 2011. “There’s no way Enviva is coming out of Chapter 11, [bankruptcy]” a former Enviva employee and whistleblower told Mongabay. “Their manufacturing equipment is not fit for the service it’s required to deliver. Only two of its 10 plants (one in Florida, one in Georgia, neither built by Enviva) are hitting their maximum achievable targets for pellet production.” Image courtesy of Bobby Amoroso.

In this story, I continue my coverage of Enviva, the Maryland-based company that claims to be the world’s largest producer of wood pellets for industrial-scale energy. The pellet maker has been a dominant force in the industry in the Southeastern United States, especially my home state of North Carolina, since it opened its first pellet mill more than a decade ago. A couple of years ago, it topped $1 billion in annual revenue, its stock price rising above $87 a share. Enviva boldly planned major expansions in the Deep South and predicted pellet production to go from 6 million metric tons annually to 13 million metric tons by 2027.

That was then.

In the spring of 2024, Enviva found itself in Chapter 11 bankruptcy, having lost hundreds of millions of dollars in 2023 from a variety of circumstances — some beyond its control, many of its own making. It’s stock price is below 50 cents a share and Wall Street analysts, once bullish on forest biomass energy, are now warning investors away. This story continues my explanation of why Enviva is failing, with additional insight from an exclusive source who continues to provide an invaluable look beyond Enviva’s public statements and required disclosures as a public company.

A new angle to my coverage is how forest advocates have been shifting their attention to Washington, D.C., because of the Biden Administration’s Inflation Reduction Act and the billions provided to incentivize renewable energy. Enviva, in desperation, is eager to convince the Environmental Protection Agency and other government offices, that is produces an legit renewable energy source and climate mitigation strategy amid the climate crisis. No rigorous, independent research supports that claim in the timeframes needed to slow the rate of global warming. But Enviva is angling for millions in US tax subsidies to help it pay for new plants in Alabama and Mississippi.

As my story explains, there is a lot at stake not only in Enviva’s future as a major supplier of wood pellets to the UK and EU, but also the future of forests desperately needed to remain standing as yet our best and most effective defense against erratic weather and accelerating global warming.

Mongabay: The EU banned Russian wood pellet imports; South Korea took them all

The Samcheonpo power plant in South Korea co-fires with coal and woody biomass, allowing it to claim it is reducing emissions under a carbon accounting loophole. Image courtesy of Solutions for Our Climate.

This story, my first of 2023, came from NGO sources I developed in Spring 2022 when writing about the explosive growth of woody biomass for energy in Japan and South Korea. At the time, Russia’s unprovoked and devastating war with Ukraine was just starting and Europe was still importing tons of wood pellets from Russia, providing billions of dollars to the Russian war effort.

NATO countries decided in July to ban Russian imports as part of escalating sanctions. Little known at the time, but revealed in late December by three different organizations, South Korea — ignoring its Western allies — took advantage of the Russian surplus and allegedly took all the pellets Russia would ship. NGOs is South Korea, Europe and the United States are livid, as my story explains. Moreover, it appears Russia has figured out how to get around the European ban by laundering its pellets through neighboring countries. All to help pay for the most egregious war crimes in Europe since World War II.

As my source in South Korea told me: “We are deeply ashamed that our government is allowing the purchase of products associated with both a humanitarian and climate crisis…” 

Mongabay: Dutch to limit forest biomass subsidies, possibly signaling EU sea change

he Netherlands is known for its photogenic windmills. But when it comes to renewable energy, wind accounts for only 23% of the country’s mix compared to 61% of renewable energy from burning biomass in coal-fired power plants.* The vast majority of Dutch energy still comes from burning oil, natural gas and coal. Photo credit: Ignacio Ferre on Visualhunt.com / CC BY-NC-ND.

This story of mine from The Netherlands appears to illustrate a small crack in the near-universal political support for biomass usage in the European Union. Is it a harbinger of more change in biomass policy as the EU moves in June 2021 to consider revisions to its Renewable Energy Directive II?

For a small country, just 17.3 million people, The Netherlands holds an outsized influence in the EU, and the new make up of its parliament (national elections were held March 17, 2021) could determine the fate of biomass subsidies in a country that is one of the largest importers of wood pellets from the US Southeast.

Small victories like this are celebrated by environmentalists, but the biomass industry continues to grow rapidly in scale and revenue. For all the science that illustrates the importance of keeping forests intact, and how burning wood pellets is more polluting than burning coal, the industry presses a different point of view and interpretation of the science that continues to hold sway with policy makers. Consider this response in my story from the president of the World Bioenergy Association:

“My take on the Dutch decision is that it is as wrong and poorly informed as the Brexit decision in the U.K.,” said Christian Rakos, responding from Austria. “It is based on campaigns that have not told the truth. The fact is, the Netherlands is currently among the worst-performing countries in Europe when it comes to renewable energy use and this [biomass] decision will further deteriorate its performance in terms of climate protection.”

He added: “Our position is to do everything possible to ensure [forest] sustainability, but to keep in mind that climate change is the greatest threat to ecosystems at present, and that it will be impossible to mitigate it without extensive use of bioenergy.”

Rakos is correct about The Netherlands and renewable energy usage. It still gets as much as 90 percent of its energy from fossil fuels. But most of its “renewable” energy comes from burning wood. As leading biomass expert Mary Booth told me: “We’re not going to burn our way out of the climate crisis.”

Mongabay: Will new US EPA head continue his opposition to burning forests for energy?

President Biden’s choice to head the US Environmental Protection Agency, Michael S. Regan. In the past, he has made strong statements criticizing the burning of wood pellets to make energy. Image courtesy of North Carolina Governor’s Office.

Here’s how this story came about. In November 2019, I interviewed Michael Regan, then secretary of North Carolina’s Department of Environmental Quality, following his appearance on a panel at Wake Forest University, where I am on the faculty. My colleague Stan Meiburg, who heads our graduate program in sustainability and retired from the Environmental Protection Agency in 2016 as deputy administrator after 39 years at the agency, helped me secure 30 minutes with Regan.

At the time, I was part of a three-reporter team working on a series of stories for The News & Observer of Raleigh about the impact of the biomass industry on North Carolina’s forests and air quality. A generous grant from the Pulitzer Center underwrote the project. Anyway, Regan was surprising blunt in his criticism of woody biomass as an energy source and sided with the science that concluded that burning biomass was not carbon neutral. Those views had already been translated into North Carolina policy under the state’s Clean Energy Plan.

When President Biden nominated Regan as his new EPA administrator, I reviewed a transcript of my interview with him, understood from previous reporting that biomass was an unsettled issue at EPA, and thought Mongabay readers would be want to know where he unambiguously stands on this issue. My editor, Glenn Scherer, agreed. I added additional reporting and interviews, and we got the story posted.

Update: In a bipartisan vote and support from both Republican senators from North Carolina, Regan won easy Senate-approval to this cabinet position in early March 2021. He becomes the first Black male to head the EPA.

Mongabay: Are forests the new coal? Global alarm sounds as biomass burning surges

In this stunning graphic created by the Southern Environmental Law Center is the size and scope of the massive wood pellet production industry in the US Southeast, one of the world’s largest producers of wood pellets for energy generation in the UK and EU. The biomass production is concentrated here because nearly all forested land is privately owned with cheap, easy access to forests for clear-cutting, destroying species habitats and weakening climate mitigation in a region beset by hurricanes and flooding.

This multimedia story — the most complex of any I’ve written for Mongabay — was months in the making. In late spring, my editor Glenn Scherer and I talked about a kind of global supply-and-demand story regarding the biomass industry. In early June, I created a Google alert for “biomass” and “wood pellets” and started gathering links to stories about the industry. It became obvious after a few weeks that despite this incessant lobbying of scientists and NGOs, despite mountains of science over a decade demonstrating that biomass is not carbon neutral like wind and solar and should not have the same legal designation, despite the loss of so many badly needed carbon-sequestering forests in the US, Canada, Russia, Eastern Europe and now Asia, the biomass industry is only growing — rapidly — in size, scale, profitability and as a natural offshoot, political influence. All this at a time when climate change is only accelerating.


A load logging truck pulls into the Enviva biomass wood pellet plant in Northampton, North Carolina. Image courtesy of the Dogwood Alliance / NRDC.

To tell this story, Glenn and I recognized we needed more than a long, involved narrative — though I produced one. We needed visuals: interactive graphics, photographs, another video produced by the super-talented Manon Verchot. It’s all here. Including this YouTube video. It’s a compelling package and a rather grim reality. There is a potential bright spot in The Netherlands where public support against biomass for energy and heat is high, and the Dutch government — a major user of biomass instead of coal — has been urged by an independent advisory commission to phase out its use of biomass. Some advocates hope that if the Dutch government acts, other EU nations may just follow suit.

In the meantime, the biomass industry continues to pile up whole trees for pelletizing along with record profits.


In 2017 demand for industrial wood pellets exceeded 14 million tons. By 2027, demand is expected to more than double to over 36 million tons. The biggest increases in biomass burning by 2027 are expected in Europe, Japan and South Korea, with newly targeted source forests in Brazil, Mozambique and Australia. Image courtesy of Environmental Paper Network

Mongabay: As investment giant BlackRock pulls back from coal, NGOs urge the same for biomass energy

Drax coal-fired power station

The four eastern cooling towers at the Drax coal-fired power station in North Yorkshire, United Kingdom. Image: Jono Brennan, CC BY-SA 2.0

This story came to me directly as a result of my coverage of the biomass-for-energy story over the past two years. Biofuelwatch, an environmental group, had organized a global group of NGOs to appeal to the world’s largest asset manager, BlackRock, to pull its 5 percent stake in the world’s largest energy-generating plant using wood pellets. Millions of tons of pellets are produced annually largely Southeastern US forests.

The underlying goal? If the world is going to dramatically reduce its use of fossil fuels, large investment companies like BlackRock need to divest hundreds of billions of dollars in oil, gas, coal and biomass, and ramp up investment in genuine zero-carbon wind and solar energy.

The company in question is one of I’ve about often; Drax, the United Kingdom’s largest energy provider. I interviewed its CEO at COP25 in Madrid, Spain, in mid-December in a fairly contentious encounter following a presentation in which no questions from the audience were allowed.

Thanks to Mongabay editor Morgan Erikson-Davis for her careful attention to detail. And thanks to my Mongabay colleague Erik Hoffner for arranging for the story to be republished here with the environmental news site Eco-Business.

Those stacks and stacks of tree trunks collected from eastern North Carolina private land and tree farms before being turned into wood pellets bound for the UK? Most were once part of thriving forests and intact, biodiverse ecosystem.