Enviva to supply biomass for Alder Fuels' SAF production

US wood pellets producer Enviva Inc (NYSE:EVA) has signed a contract for the long-term supply of woody biomass to greencrude-focused company Alder Fuels.

Under the agreement, announced today, Enviva will be an exclusive supplier of up to 750,000 tonnes of sustainably sourced woody biomass per year to the first Alder Greencrude (AGC) plant that will soon be under construction in the southeastern US. Supplies are expected to begin in 2024.

AGC can be refined into low-carbon to carbon-negative sustainable aviation fuel (SAF), the companies say.

Alder Fuels already has a commitment from United Airlines for the purchase of a massive 1.5 billion gallons (5.7 billion litres) of SAF over 20 years.

Demand for SAF is fueled by airlines’ net-zero carbon emissions targets and policy initiatives, including the recent enactment of the Inflation Reduction Act, which provides tax credits for every gallon of SAF based on lifecycle greenhouse gas emission reduction percentages.

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