September 7, 2022
Aemetis Finalizes $7 billion of Supply Contracts for 100% of Riverbank Plant Production of Sustainable Aviation Fuel and Renewable Diesel for up to 10 years
CUPERTINO, CA – September 7, 2022 – Aemetis, Inc. (NASDAQ: AMTX), a renewable fuels company focused on negative carbon intensity products, announced today that $7 billion of sustainable aviation fuel (SAF) and renewable diesel (RD) supply agreements have been signed with 10 airlines for a total of 916 million gallons of blended SAF, including a contract with an airline that was signed by Aemetis today. Previously, Aemetis announced a contract with a major travel stop chain for 450 million gallons of renewable diesel. The combined value of the 10 airline contracts, including incentives, is approximately $3.8 billion.
The airline supply agreements provide for the delivery of SAF over a seven-to-ten year time period. Airline customers include Delta Air Lines, Jet Blue Airlines and oneworld Alliance members American Airlines, Alaska Airlines, British Airways, Finnair, Iberia, Japan Airlines and Qantas.
The blended SAF is 40% “neat” sustainable aviation fuel and 60% petroleum jet fuel to meet international blended sustainable aviation fuel standards. The SAF is scheduled to be delivered to San Francisco International Airport (SFO) and Los Angeles International Airport (LAX) as blended fuel, and the RD is expected to be delivered to Northern California truck fueling locations.
The sustainable aviation fuel and renewable diesel will be produced at the Aemetis production plant currently under development in Riverbank, California. The facility is designed to use renewable hydrogen and zero carbon intensity hydroelectric electricity to hydrotreat sustainable renewable oils to produce SAF and RD.
Sustainable aviation fuel has a significant environmental advantage over traditional jet fuel, with up to a 100% reduction in greenhouse gas (GHG) emissions on a lifecycle basis when utilizing low carbon energy and feedstocks along with carbon sequestration. SAF is a vital solution in the decarbonization of aviation in the near and medium-term, particularly for longer-haul flights. Offtake agreements – as well as targeted investments and government support mechanisms – will enable the airline and trucking industry transitions towards low carbon, low emission, renewable fuels.
“Sustainable aviation fuel has a vital role in meeting aviation’s decarbonization targets, so we are pleased to complete another milestone in the drive toward SAF use at commercial scale,” said Eric McAfee, the Founder, Chairman and CEO of Aemetis. “The Aemetis plant process design for the Riverbank plant utilizes renewable oils, renewable hydrogen and renewable power to produce advanced renewable fuels that reduce greenhouse gas emissions and improve air quality.”
Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today’s infrastructure.
Aemetis Carbon Zero products include zero carbon fuels that can “drop in” to be used in airplane, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity 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 petroleum-based products and reduce greenhouse gas emissions. 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. 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 sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce 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 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 relating to the development and construction of the sustainable aviation and renewable diesel fuel projects, financing, our compliance with governmental programs, and our ability to access markets and funding to execute our business plan. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “will likely result,” “will continue” 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, including our Annual Report on Form 10-K for the year ended December 31, 2021 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.