Dominion Virginia Power contracts to buy wood chips for biomass plants

A Bethesda, Md.-based firm that makes wood materials that are burned to generate energy announced this morning that it has signed a contract to sell wood chips to Dominion Virginia Power.

Enviva LP will supply the chips to two plants in Southampton and Hopewell, Va. The the plants are two out of three that the Richmond-based utility company is converting from 63-megawatt coal burning peaking plants to 50-megawatt plants fueled by biomass.

"Dominion's selection of Enviva reflects our increasing position as a preferred partner and supplier to utilities seeking sustainably-generated, reliable biomass supply for renewable energy generation," John Keppler, Enviva's chairman and CEO, said in a news release.

Financial details about the contract, including its value, were not released.

The wood chips and pellets are made from waste from wood-products manufacturing -- such as chips and sawdust -- and small trees. Last May, Enviva built a 157-foot-tall dome in Chesapeake to be used to store wood pellets made at a plant in nearby in Ahoskie, N.C.. The company also operates two plants in Mississippi.

Enviva announced in August that it plans to develop a wood pellet facility in Northampton County. It also plans to operate a separate facility owned by Biomass Energy in Bumpass, Va., according to a news release.

Dominion plans to invest about $50 million to convert each plant into biomass-burning sites by 2013. The third plant is in Altavista.

-- Josh Brown

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