Enviva exercises lease option at Port of Pascagoula
In the United States (US), Enviva Holdings, LP (Enviva), the world’s largest producer of industrial wood pellets, has announced that it has exercised an option with the Jackson County Port Authority to lease property in the Bayou Casotte Harbor in the Port of Pascagoula, Mississippi, where it plans to invest over US$60 million to build and operate a deep-water marine terminal.
According to a statement, Enviva intends to use the Pascagoula terminal to ship sustainably sourced wood pellets under long-term contracts with customers across Europe and Asia who are seeking to reduce their carbon footprint.
The Port of Pascagoula is a key asset for global commerce and an economic engine for Mississippi. We appreciate the leadership of Governor Phil Bryant and Lieutenant Governor Tate Reeves for creating a pro-business environment in Mississippi. This project is only possible because of the hard work of dozens of officials in Jackson County including the Port Authority, Mayor Dane Maxwell, Senator Michael Watson, Representative Charles Busby, the Board of Supervisors, and the Port Authority Board of Commissioners. They were instrumental in helping us secure this critical component of our supply chain, which will enable us to export our product to meet the increasing demand from our Asian, European, and Caribbean customers, said John Keppler, Chairman, and CEO of Enviva.
Enviva plans to invest over US$60 million to build the new Pascagoula terminal, which is expected to directly employ approximately 30 full-time workers and support about 150 direct and indirect jobs during construction.
With the execution of this lease option, we are proud to advance our partnership with Enviva. This day marks the start of a major venture for both Jackson and George Counties. It is not only an economic opportunity for the region but also a natural fit for Mississippi’s renewable natural resources and access to international markets via the Port of Pascagoula, said Pascagoula Port Director Mark McAndrews.
Exercising the lease option allows Enviva to prepare the site for construction of the Pascagoula terminal, which it expects to complete in the second half of 2020.
The Pascagoula terminal is designed to handle approximately three million of wood pellets annually and will allow Enviva to construct several wood pellet production plants in Mississippi and Alabama, with the first plant expected to be built in Lucedale, Mississippi simultaneously with the Pascagoula terminal.
The Pascagoula terminal will be capable of receiving product by rail, barge, and truck, storing up to 90 000 tonnes of wood pellets on-site and supporting Panamax-sized vessels. It will utilize state-of-the-art handling equipment and storage infrastructure designed to maintain product quality and safety.
The Port, Enviva, and our state, federal, and local officials have been working together for several years to coordinate the logistics and the economics necessary to bring this project to fruition. Today is the day we move forward, concluded Mark McAndrews.