Krystal Martin, right, co-founder of Greater Greener Gloster, attended the October Mississippi DEQ hearing with many of her neighbors, who say they were disappointed with the outcome. She stands beside Kadin Love, a social justice organizer with the Dogwood Alliance, an environmental nonprofit. Image courtesy of Krystal Martin.
What Mississippi gives to a poor, Black community in the state it can just as quickly take away. That’s what this story details. In May, I reported that a permitting committee of the Mississippi Department of Environmental Quality voted to deny wood-pellet maker Drax its request for a new classification to enable it to exceed air pollution standards.
In October, after a Drax appeal, the same committee sided with the company and against the small community — which has been telling anyone who will listen that the air pollution from one of the largest wood-pellet mills in the country is damaging their health and quality of life.
As my story explains: Pellet mills have increasingly come under fire from rural communities who accuse large-scale manufacturers like the U.K.’s Drax and Enviva in the U.S. of air pollution, dust and noise violations. A 2023 study found that pellet mills in the U.S. Southeast release 55 hazardous pollutants.
Moreover, the Drax plant has been fined more than $2.75 million since 2016 for exceeding toxic emissions limits. While Drax says it has invested millions in pollution mitigation technology to prevent future pollution, those living in Gloster told me they’ve seen no difference in their air quality.
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.
