Enviva ( NYSE: EVA ) and privately-held clean tech developer Alder Fuels said Tuesday they agreed to partner on the long-term supply of biomass byproducts from timber for making sustainable aviation fuel; financial terms are not disclosed.
The agreement makes Enviva ( EVA ) an exclusive supplier of as much as 750K metric tons/year of sustainably sourced woody biomass to Alder's first Alder Greencrude production facility, soon to be under construction in the southeastern U.S., beginning in 2024.
Backed by Honeywell, Boeing, the U.S. Defense Logistics Agency, the U.S. Department of Energy and others, Alder Greencrude can be refined using existing infrastructure into low-carbon to carbon-negative sustainable aviation fuel that matches petroleum-based equivalents on specification and performance.
The companies said the announcement "represents a major milestone in the rapid acceleration and scaling up of low-carbon transportation fuels with the potential to fundamentally change the future of flying and other modes of transport over time."
Citing near-term headwinds around costs, RBC Capital recently downgraded Enviva shares .
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Enviva, Alder reach woody biomass supply deal for sustainable aviation fuel