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Enviva signs 10-year RNG offtake deal with GreenGasUSA

In the United States (US), Enviva Partners LP (Enviva), the world's largest industrial wood pellet producer, and GreenGasUSA Holdings LLC (GreenGasUSA), an integrated renewable natural gas (RNG) solutions provider, have announced a 10-year RNG offtake agreement to decarbonize natural gas-related emissions in Enviva’s operations.

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Enviva Hamlet wood pellet plant in Richmond County, North Carolina (NC) commenced commercial operations in June 2019 and has a production capacity of 600 000 tonnes per annum. Enviva has signed a 10-year renewable natural gas (RNG) offtake agreement with GreenGasUSA Holdings to decarbonize natural gas-related emissions in its operations (photo courtesy Enviva).

Formed in 2019 by Marc Fetten, GreenGas provides low- and zero-emitting energy solutions to industrial, commercial, and residential users committed to reducing their environmental footprint. This includes supplying compressed natural gas (CNG) as an alternative to higher-cost and higher-emitting fuels such as oil or propane; operation of a virtual pipeline fleet for CNG and RNG across the US; production of RNG from a variety of waste sources; as well as pipeline injection services.

GreenGas currently owns a natural gas injection point in Georgetown, South Carolina (SC) that serves as a primary renewable energy aggregation hub enabling farmers to participate in the renewable gas industry and providing income to an important sector in the U.S. economy.

The offtake agreement with Enviva is expected to eliminate more than 64 000 tonnes of carbon dioxide equivalent (CO2eq) from the atmosphere annually. Enviva’s commitment underwrites a stand-alone GreenGasUSA project to install equipment that captures and treats methane currently being released directly into the atmosphere at a food processing facility in rural South Carolina (SC).

As part of the agreement, GreenGasUSA will transport the RNG directly to Enviva’s Hamlet plant to be utilized in its industry-leading emissions control equipment in place of fossil natural gas in the third quarter of 2022.

Part of Net-Zero commitment

Earlier this year, Enviva announced a Net-Zero Commitment that will reduce, eliminate, or offset all of its direct emissions by 2030. As part of this plan to cut carbon emissions from fossil fuels and improve energy efficiency, Enviva agreed to adopt innovative and improved lower-emission processes through investments in projects that result in real, additional, and third-party verified net-carbon reductions.

The methane captured and emissions eliminated as a result of this offtake agreement is expected to offset approximately 75 percent of all Enviva’s direct emissions from its manufacturing operations, or Scope 1 emissions, on an annual basis for the duration of the 10-year agreement.

We are proud to partner with GreenGasUSA to minimize the use of fossil fuels in our Scope 1 emissions and execute on highly effective carbon-neutral strategies. Selecting GreenGasUSA for this project was a natural choice as several of their agricultural partners are in close proximity to our existing operational infrastructure. The environmental benefits they provide to the communities they serve and their potential to grow and expand with us as a service provider underscores our excitement about this new collaboration, said Thomas Meth, Co-founder and EVP of Sales and Marketing at Enviva.

One of the first food waste to RNG projects in South Carolina

Capturing fugitive methane from wastewater treatment plants (WWTP), landfills, agricultural activities, and other sources has been identified by the US Environmental Protection Agency (EPA) as a key strategy to reduce GHGs and slow global warming.

In addition, RNG projects provide much-needed investment and income in rural agricultural communities disconnected from infrastructure.

Through GreenGasUSA’s innovative work with established local agribusiness industries, South Carolina is leading the way in carbon mitigation through methane capture. This new partnership reinforces a strong commitment to our environment and to rural South Carolina, said Hugh Weathers, South Carolina Commissioner of Agriculture.

The elimination of direct methane emissions at the food processing facility and conversion of these gases into RNG will be one of the first “food waste to RNG projects” conducted in the US Southeast.

GreenGasUSA is grateful to work with Enviva on projects like this. Methane capture from agricultural sources is one of the most impactful things we can do to combat climate change. We are thankful for the leadership of Commissioner Weathers and our farming community for embracing these efforts. Eliminating greenhouse gas emissions and creating new income streams for farmers continues to be very gratifying work. Industry leadership, such as Enviva’s commitment to carbon neutrality, is an enabling driver for these types of projects. We sincerely appreciate Enviva’s selection of GreenGasUSA as a decarbonization partner, said Marc Fetten, founder and CEO of GreenGasUSA.

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