US-based wood pellet manufacturer Enviva has filed for bankruptcy with US$1.8 billion in debt, the company value now being around 1% of its US$6 billion peak two years ago, as the Financial Times reports.

The company’s pellets sell to power generators across the world, including to Drax in the UK and to clients in Japan. At the root of Enviva’s fall appears to be two problems: an increase in running costs, which the company funded by debt, and commodity trading that went wrong, with a fall in wood pellet prices going against the company’s predictions in a deal with Germany’s RWE. (RWE says Enviva still owes it US$348.7 million for the transaction.)

The bankruptcy filing was expected, after Enviva failed to make an interest payment earlier this year. Some form of the company is expected to continue operating; Drax has said it believes the filing will have “no material impact” on its operations.