Estimated $18 million per year of increased net income ($0.75 earnings per share)
CUPERTINO, CA – January 22, 2021 – Aemetis, Inc. (NASDAQ: AMTX) announced that its “Carbon Zero” biofuels production process has received a total of $16.8 million of solar energy and other energy efficiency grants to fund upgrades of the Keyes, California plant to support the production of zero carbon renewable fuel. The renewable energy and efficiency projects funded by the grants already have been launched into the design, permitting, construction and commissioning process. The projects supported by grant funding will provide an estimated $18 million per year of increased margin, equal to about $0.75 net income per share each year.
Aemetis Carbon Zero production plants commercialize patented technology exclusive to Aemetis for agricultural and forest waste wood feedstock. Carbon Zero plants are integrated with existing Aemetis production facilities to produce energy dense renewable fuels using renewable energy and below zero carbon intensity waste feedstocks.
Carbon Zero production plants are designed to convert below zero carbon feedstocks (waste wood and ag wastes) and renewable energy (solar, renewable natural gas, biogas) into energy dense liquid renewable fuels. Aemetis expects that such renewable fuels, when used in hybrid electric vehicles or other vehicle engines, will have a “below zero carbon” greenhouse gas footprint across the entire lifecycle of the fuel based on the Argonne National Laboratory’s GREET model, the pre-eminent science-based lifecycle analysis measurement tool.
“The award of a combined $16.8 million of California Energy Commission and Pacific Gas & Electric energy efficiency programs to fund the ‘Carbon Zero 1’ biofuels plant reflects government and utility industry support for our mission to reduce greenhouse gases,” stated Eric McAfee, Chairman and CEO of Aemetis. “We are installing a large solar array with battery storage and using other renewable energy sources to power new electricity-powered systems, replacing equipment that uses high carbon intensity petroleum natural gas and upgrading less efficient heat transfer systems.”
“These Carbon Zero plant upgrades at the Keyes plant are an integrated part of producing below zero carbon biofuels from agricultural waste wood,” said McAfee. “By combining below zero carbon waste wood with zero carbon renewable energy obtained from solar, hydroelectric and biogas sources, Aemetis is transforming these sources of renewable energy into zero carbon renewable fuels to power existing engines and to fuel range extender generators used in electric cars and trucks,” McAfee noted.
The Carbon Zero 1 plant renewable energy and energy efficiency upgrades include funding and other support from the California Energy Commission, the USDA, the US Forest Service, the California Department of Food and Agriculture, and PG&E.
Aemetis has a mission to transform renewable energy into below zero carbon transportation fuels. The next generation of renewable fuels can achieve below zero carbon emissions by addressing the market need of reducing greenhouse gas emissions with sustainable alternatives. Aemetis uses low-carbon renewable resource-based carbohydrates as raw materials and is developing renewable electricity and renewable natural gas for use in transportation and production processes. Aemetis low-carbon fuels have substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle).
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas (RNG). Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero 1 plant in California to convert waste orchard wood into sugars that will be processed into biofuels at the Keyes plant, as well as cellulosic ethanol and renewable hydrogen in expansion phases. Aemetis holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.
Safe Harbor Statement
This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements related to increased net income, statements relating to our ability to commercialize and scale the licensed patented technology, the ability to obtain sufficiently low Carbon Intensity score to achieve below zero transportation fuel, the development of the Aemetis Biogas Central California Dairy Project, and the ability to access the funding required to execute on the plant construction and operations. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue,” “enable” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission (the “SEC”), including the Aemetis Annual Report on Form 10-K for the year ended December 31, 2019, and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.