Tag Archives: Fenna Swart

Mongabay: Enviva, the world’s largest biomass energy company, is near collapse. Here’s why.

Forest biomass protestors outside Enviva’s Raleigh, North Carolina, offices. Across the UK, EU and Japan, forest campaigners have consistently protested the local and global impact of the world’s largest producer of forest biomass — wood pellets — for industrial-scale burning in former coal-fired power plants. Ultimately, the company’s own grave operational problem at its plants appear to be behind its financial collapse. Image by Kimala Luna courtesy of the Dogwood Alliance.

I was in the air on a Delta flight to Bozeman, Montana, on November 9, 2023, when I received a text message from a source: Enviva‘s stock was collapsing and the company had warned in a financial disclosure what it “may not be able to continue as a going concern.” I didn’t exactly see this coming, but ultimately, having written in May about Enviva’s unexpected financial tanking in the first quarter, I wasn’t fully surprised.

As I read the breaking news coverage from the environmental and business press about the near fall of the world’s largest producer of wood pellets for industrial-scale burning for energy instead of coal, I saw an enormous gap — even in The Wall Street Journal. All the stories recited the staggering losses and the new, interim CEO’s positive spin on a desperate situation. But none of the stories could explain why a billion-dollar company with long-term contracts around the world, and where demand for pellets is at a record high, had lost more than $250 million this year and exhausted a $570 million line of credit.

That’s the only story I wanted to write, and it’s linked here. Enviva’s travails are acknowledged — in carefully shrouded accounting language — in its public filings with the Securities and Exchange Commission. But I am fortunate to have as a source a former Enviva maintenance manager at two of its 10 Southeastern US mills. I interviewed him once I got settled in Montana and again when I returned to North Carolina. Based solely on his experience at Enviva over two years — 2020-20222 — he was able to explain the plausible whys and hows behind the staggering losses. This source, still unnamed for reasons of privacy and security, was my whistleblower in December 2022 in a story that reverberated globally.

This story quickly attracted international attention, too. In fact, it ranked as the No. 1 best-read story on the Mongabay website in November with more than 85,000 readers; that’s a lot. Better still, by year-end, my report made the list of 10 Most Read Stories of 2023, ranking sixth. As yet, though, it’s not clear yet what the ultimate ramifications of this downfall will be on the highly subsidized global market for forest biomass and the countries that have come to rely on this scientifically denounced form of energy in a climate crisis.

Enviva’s stock collapse this year: The company’s stock was trading above $51 per share on January 13, 2023, and gradually slid to half that until the May 3 plunge. It dived again on November 9, bottoming out at 62 cents per share that day, and has not recovered much value since. It is now trading as a penny stock. Source: November 16 end of day trading screenshot from Google.com.

Mongabay: EU woody biomass final policy continues threatening forests and climate: Critics

Logged trees for biomass in Bischofsheim, Germany. Image by 7C0 via Flickr (CC BY 2.0)

This story describes the final revisions to a multi-year process in the European Union that led to a largely status quo rendering of the European Union’s Renewable Energy Directive, especially as it applies to burning forest biomass for energy and heat as a means of reducing coal burning.

Before the debates in Brussels even got started in earnest in 2021, hoped was raised in Madrid, Spain, at the end of the United Nations climate summit, COP25, when Frans Timmermans, the Dutch politician who is the EU’s top environmental minister, answered a question of mine regarding biomass energy and whether not counting emissions at the smokestack was skewing emission-reduction accounting. Timmmermans’ response — that it was time to take a close look at regulations regarding biomass because new science had emerged — sent a wave of hope through European forest advocates.

If Timmermans was willing to follow the science, they reasoned, certainly changes were possible that would protect native forests, reduce or eliminate subsidies for purchasing wood pellets, and most importantly, reverse the science-challenged definition of woody biomass as a renewable energy source equal to zero-carbon wind and solar. Australia made this definition change policy in December 2022.

After two years of intense lobbying, special documentaries, investigative reporting, overwhelming public opposition, letters signed by hundreds of EU scientists and clear evidence that exchanging coal for wood is not only adding to deforestation globally but adding to emissions as well, the changes in the third iteration of RED are minimal — at best. My story explains the details. This quote captures the alarm and disappointment:

“The revised RED is not based on advancing scientific or even pragmatic insights as we fought and hoped for years,” Fenna Swart, a forest advocate with The Netherlands’ Clean Air Committee, told Mongabay. “It is only a political solution for key stakeholders… for an unsolved global problem.” Stakeholders who benefit, she said, include northern European member states with large harvestable forests such as Sweden and Finland, and the forestry and energy industries.

As I witnessed during a reporting trip to the North Carolina coast in November 2022, native forests are falling at a constant and growing rate to enable Marylond-based Enviva, the world’s largest maker of wood pellets, to meet accelerating demand for wood pellets in Europe, the United Kingdom and Asia — all because of deeply flawed national policies at the worst possible time in the climate crisis. Deforestation in harvest areas of North Carolina is estimated at 6 percent a year and will only increase an Enviva’s wood pellet production doubles by 2027. This photo of mine is of Enviva’s smallest plant in Ahoskie, NC.

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: Australia rejects forest biomass in first blow to wood pellet industry

What Is The Role Of Koalas In The Ecosystem? - WorldAtlas
As 2022 came to a close, Australia did something no other major economy has done. It changed an environmental policy that essentially stops the wood pellet industry from starting up at any measurable scale. Forest advocates used the image of “dead koalas” in lobbying energy companies to not turn to biomass.

This story demonstrates the significance of a definition, in this case: what exactly is renewable energy? In September, the European Union punted on an opportunity to correct what forest advocates and climate scientists stress is an erroneous definition, that burning forest biomass is a renewable energy source, as this story explains. But as I report here, the liberal Australian government, persuaded by a relentless pro-forest campaign, reversed its existing policy to note that burning forest biomass is not a renewable energy source.

With that definition change, Australia virtually halted the ever-growing biomass industry — which is thriving in the United Kingdom , EU and Asia — from getting started Down Under. It represents a rare global win for environmentalists who have been battling the industry for years. And it raises a vexing question: how can major economies have polar opposite definitions of renewable energy during a climate crisis? And how can the United Nations’ governing body on climate change stay silent on this discrepancy?

This story posted on Wednesday, December 21, a time when people are distracted by the holidays and other grim world news. Yet this story drew more readers around the world than perhaps any I’ve written for Mongabay. Just one tweet by Mongabay drew more than 5000 likes, 1350+ retweets and 115+ comments — numbers I’ve never come close to with previous stories. Mongabay social media coordinator Erik Hoffner tells me the story ranked as the 6th best-read Mongabay story of 2022 and it posted just days before Christmas. It also got a big boost from tweets by noted environmentalist Bill McKibbon, which attracted even more global attention, as did tweets in Dutch posted by forest advocate Fenna Swart.

Mongabay: As EU finalizes renewable energy plan, forest advocates condemn biomass

Wood chips piled in mounds more than 6 meters (20 feet) high cover the lot of an Enviva wood pellet plant in Ahoskie, North Carolina. Enviva claims it uses wood waste and doesn’t use large whole trees in the making of its wood pellets and that it only accepts wood from sites that will be replanted with trees — greenwashing that was discounted this week by a whistleblower who worked for Enviva and also confirmed by a Mongabay onsite investigation. Image by Justin Catanoso for Mongabay.

As I was preparing my exclusive whistleblower story, a commentary was released in the journal Nature that sought to weigh in on the late-stage negotiations in the European Union on its Renewable Energy Directive (RED) as it applied to biomass harvest and burning. The headline pretty much summed up the message: EU climate plan boosts bioenergy but sacrifices carbon storage storage and biodiversity.

I interviewed the lead author, Tim Searchinger of Princeton, sought comments from sources in The Netherlands and Germany regarding the state of the negotiations, got one German member of parliament to answer a few questions without attribution, and layered in context regarding European politics and bioenergy industry lobbying.

The result: this story that updates readers on the state of RED negotiations and the latest scientific arguments for limiting biomass harvest and burning, and eliminating billions in subsidies. A reference to my whistleblower story fit into the story as well.

Mongabay: EU votes to keep woody biomass as renewable energy, ignores climate risk

In addition to forest loss, wood pelletization uses significant energy in the transport of logs harvested in the U.S., Canada and elsewhere, in the processing of wood to make the pellets, and for transportation overseas to the EU where the pellets are burned. Image by #ODF at Visualhunt.com

This story follows up on a one I wrote last spring (2022) regarding the negotiations around possible revisions to the European Union’s Renewable Energy Directive (RED), which is evaluated every three years. Of peak interest has been whether members of parliament would change their view toward the continent’s use of woody biomass for heat and energy and its impact on global forests.

Biomass accounts for more than 60 percent of the EU’s renewable energy portfolio — but legions of scientists continue to argue there is nothing renewable about burning biomass, at least at it compares to zero-carbon wind and solar.

While parliamentary committees for the first time recommended changes in subsidies for woody biomass and increased protections for Europe’s forests — which provide the bulk of the EU’s pellet production — the outcome appears far different. Yes, it calls for phasing down of subsidies, estimated at $13 billion annually. It also calls for protection of natural forests, saying only lumber residue and damaged trees can be used for pellets. But forests advocates explained to me that the amendments that were approved are vague enough to not change EU woody biomass consumption — or the emissions they produce — at least for the next three years.

This view was essentially supported by a statement by US-based Enviva, the world’s largest pellet maker, that hailed the RED amendments as a victory for the bioenergy industry.

Here’s the big thing: an amendment that would declassify woody biomass as a renewable energy source, on par with wind and solar (a well-reported error that began with the 1997 Kyoto Protocol) was rejected. This, too, was cheered by the bioenergy industry.

Mongabay: EU Parliament’s Environment Committee urges scale back of biomass burning

Fenna Swart, the campaign manager for the Dutch Clean Air Committee, holds a bag of wood pellets during a protest outside the building where EU Commissioners regularly meet in Brussels. Image by Daniel Djamo.

Forest advocates in Europe, led by Fenna Swart and Maarten Visschers of The Netherlands, have lobbied against the growing use of biomass across the continent for several years now. They’ve been joined by a host of NGOs from the United Kingdom to the Baltic states, all raising public opposition to wood-burning-for-energy-and-heat. Citizen petitions have been signed by the hundreds of thousands.

Collectively, though, their efforts, combined with forest ecologists using their science to speak up as well, hasn’t made a dent in European Union biomass policy. This story explains, however, that among the Environment Committee of the European Parliament, there is a now majority of members who have been persuaded enough to recommend unprecedented policy changes to biomass usage under the EU’s Renewable Energy Directive, RED.

As I note in my story, forest advocates are cautiously optimistic and highly skeptical. Another parliament committee can derail the recommendations. The Russian war with Ukraine, and the rush to stop the flow of Russian fossil fuels to Europe, complicates matters. And the most influential climate politician in the EU, Frans Timmersmans of The Netherlands, still backs biomass as the primary way for the EU to stop burning coal, as it is legally mandated to do. A final decision is expected in September 2022.

Forest advocates protest against Frans Timmermans, the European Commission’s vice president and its leader on climate policy. before a ceremony on May 12 in The Netherlands where he was honored with a Nijmegen Peace Prize, a high European honor. The banner reads: “Frans Timmermans protect our forests! #StopBiomass Combustion.” Image by Cain Scorselo, Dutch Clean Air Committee.

Mongabay: COP26: E.U. is committed to forest biomass burning to cut fossil fuel use

Frans Timmermans, the European Commission’s executive vice president (right), speaks during the COP26 press conference. E.U. minister Andrej Viziak of Slovenia is on left.

The last time I got to question Frans Timmermans, the executive vice president of the European Commission and easily the most influential politician in the EU, was at COP25 in Madrid, Spain, in December 2019, just weeks before the pandemic took hold. It was the last day of a dismal summit. I asked him about the future of biomass in the EU, and his answer was so surprising that it led to a story that quite literally stunned anti-biomass activists around from the US to Belgium to Australia.

In this story, my third from Glasgow, I got to question Timmermans again. This time, his answer was far more predictable, and to those same anti-biomass advocates, an enormous disappointment. I did get more than one question, though, as I asked Mr. Timmermans if he could talk further after the 30-minute EU press conference, which took place at exactly the same time former US President Barack Obama was addressing a packed plenary hall a few hundred yards away.

Aside from a range of reactions from forest defenders around the globe, I also received a detailed and thoughtful response from Christian Rakos of Vienna, Austria, president of the World Bioenergy Association. Rakos surprised me by offering an open dialogue with those who oppose everything about the industry he represents. I included it in my story and he reiterated his interest during a 90-minute meeting I had with him over Italian beer at the summit venue. Later, post-COP26, at dinner in Amsterdam with the EU’s leading biomass opponent, Fenna Swart, I mentioned to her Rakos’ interest in talking with her — even volunteering to travel to Holland to meet in person.

Swart and Rakos exchanged emails and a meeting between them is planned in Amsterdam.

Christian Rakos, president of the World Bioenergy Association, which is based in Stockholm. The EU burns an estimated 31 million metric tons of woody biomass annually for energy and heat. Rakos believes this burning of wood is far better than burning coal as well as environmentally sustainable — in the EU. His is less familiar with the industry’s impact on forests in the Southeastern U.S. and British Columbia.