Both the firm will expand and operate Biomass Energy’s wood chip and pellet manufacturing facility in Virginia, US with the goal of producing more than 350,000 metric tons of wood pellets over the agreement’s three-year term.

The supply will be exported to Enviva’s European utility customers who, are increasingly turning to processed biomass fuel to reduce the environmental footprint of energy generation.

The wood pellet production will be stored at Enviva’s deep water port facility in Chesapeake, Virginia.

Production from the partnership will also be sold through Biomass Energy’s growing distribution channels to key institutional and retail outlets.