April 22, 2013
Aemetis Announces Restart of 60 million gallon per year Keyes Biofuels Plant
Biorefinery Able to Process Grain Sorghum and Biogas to Produce Advanced Biofuel
Cupertino, Calif. – April 22, 2013 – Aemetis, Inc. (OTCQB: AMTX), an advanced fuels and renewable chemicals company, announced today that the Aemetis 60 million gallon per year capacity ethanol facility in Keyes, California has completed planned maintenance and preparations for the production of Advanced Biofuel under recent EPA rulings, and is now restarting production.
The plant will start up using corn as the principal feedstock, with grain sorghum or a feedstock blend used after startup to maximize operating income. In December 2012, the Environmental Protection Agency (EPA) approved the use of grain sorghum feedstock along with biogas in a combined heat and power system to produce an Advanced Biofuel containing approximately 50% lower carbon content than gasoline. Advanced Biofuel generates D5 Renewable Identification Numbers (RINs) that have traded at a premium to traditional ethanol D6 RIN’s.
“We have an exceptionally capable technical and operations team at Aemetis, as demonstrated by the timely completion of this maintenance process and transition to the production of Advanced Biofuel,” said Eric McAfee, Chairman and CEO of Aemetis. “About $5 million of capital investment and new working capital has been invested since mid-January for maintenance and to enable the plant to produce Advanced Biofuel in a flexible configuration that enables the use of multiple feedstocks and energy sources.”
McAfee added, “The Keyes plant has sustainable cost advantages in Advanced Biofuels production. The plant’s location enables both rail and ocean shipping access to advanced biofuel feedstock from lower-cost supply sources. The Keyes plant is also equipped with an energy-efficient Combined Heat and Power (CHP) system to reduce energy costs and decrease the carbon content of fuel. By using grain sorghum feedstock and sourcing biogas for the CHP system instead of natural gas, the Keyes facility is now able to produce Advanced Biofuel to support EPA requirements for advanced fuels.”
An Aemetis Business Update conference call for investors will be held on Thursday, April 25, 2013 at 1:15 pm Pacific time. The conference call number is (559) 726-1300 and participant code is 166576. After the call, the playback number is (559) 726-1399 and code is 166576. Aemetis has also posted an updated company presentation on its website at Aemetis.com > Media > Presentations.
Forward Looking Statements
The information contained herein includes forward-looking statements related to future events. Statements regarding future events are based on current expectations and are necessarily subject to associated risks related to, among other things, the ability of the company to adopt alternative feedstocks, processes and equipment, as well as the spread between the feedstock we purchase and the fuel and co-products we sell. Actual results may differ materially from those in the projections or other forward-looking statements made herein. For information regarding other related risks, please see the “Risk Factors” section of the company’s filings with the SEC.