Mississippi plant closing after getting millions in incentives. Are South MS sites safe?
The company that operates a $140 million wood pellet manufacturing plant in Lucedale and a $60 million shipping terminal at the Port of Pascagoula is closing its plant in northeast Mississippi.
Enviva LLC announced this week it will close the biomass plant in Amory on Friday, Feb. 7. Enviva is the largest supplier of wood pellets in the world.
The Amory facility was the company’s first plant operated in the United States and was acquired in 2010.
The closure is the latest in what has been a challenging time for Enviva since the company opened its Lucedale plant in 2022. At that time, locals applauded the jobs and economic development for George County, while critics warned of the potential for environmental damage from the operation.
In March 2024, Enviva filed for Chapter 11 bankruptcy to restructure its $2.6 billion debt.
The company, based in Maryland, emerged from bankruptcy nine months later in December. It now operates as a private company with a new board of managers.
Company looking at all operations
Any future growth will come without the Amory wood pellet plant.
“As part of our post-emergence exercises, we are reviewing the overall operational efficiencies of our entire fleet,” the company said in a statement to the Sun Herald.
“Due to market dynamics and the Amory facility’s infrastructure and operations, along with the relationship of its size and scale relative to the rest of our portfolio, it has been decided resources are better invested in other areas moving forward,” the company said.
What does that mean in South MS?
Enviva was welcomed to South Mississippi with millions of dollars in grants and incentives tied to job creation.
Mississippi Development Authority awarded the company $4 million for a water tank, well and other infrastructure in Lucedale and George County provided tax breaks and other incentives to bring the company there.
Enviva said it will continue to operate both at Lucedale and Pascagoula, where they employ about 100 workers.
Will Enviva build in Bond?
The company also was planning to build another plant at Bond, near Wiggins, in Stone County. The project was put on hold when the company filed Chapter 11.
Enviva didn’t provide an update on whether that facility is in the future plans.
The company thanked those who contributed to the Amory facility and said in its statement, “Enviva remains committed to manufacturing high-quality sustainable wood pellets and focused on the long-term success of our business as we navigate these changes.”
This story was originally published February 5, 2025 at 10:45 AM.
