February 1, 2021
Aemetis Opens Bid Proposal Process for $2 billion Offtake Agreement for “Carbon Zero” Renewable Jet and Diesel Fuels
Aircraft and Trucks to be Supplied with ‘Carbon Zero’ Drop-In Biofuels using Solar and Hydro Electricity-Powered Systems to Convert Renewable Hydrogen and Biomass into Biofuel
CUPERTINO, CA – Febuary 1, 2021 – Aemetis, Inc. (NASDAQ: AMTX) announced today that it has opened the bid proposal process for $2 billion of offtake contracts for the launch of the Aemetis “Carbon Zero” plant #1 to commercialize patented technology exclusive to Aemetis for the production of renewable jet fuel and renewable diesel for the aviation and commercial truck markets.
The Aemetis “Carbon Zero 1” plant has a planned capacity of 23 million gallons per year and will be located at the 142-acre Riverbank Industrial Complex, a former US Army ammunitions plant in Riverbank, California.
The patented technology exclusive to Aemetis enables organizations that use jet and diesel fuel such as online marketplaces, package delivery companies, logistics firms and commercial airlines to meet aggressive carbon reduction goals by accelerating their transition away from fossil-based fuels.
The Carbon Zero process converts renewable waste biomass into renewable hydrogen, then uses the renewable hydrogen, solar power, hydro-electric power and low carbon feedstocks to produce zero carbon and drop-in fuels. The jet and diesel fuels may be used in today’s airplane, truck, and ship fleets without changes in fueling infrastructure or modified engines.
According to the EPA, about 28% of U.S. carbon emissions are emitted by the transportation sector, posing a significant challenge to reducing greenhouse gas emissions (GHG). New business mandates that include corporate climate commitments and Environmental/Social/Governance (ESG) investing are significantly increasing the demand for low-carbon transportation alternatives.
“We expect the Aemetis Carbon Zero 1 biorefinery at the Riverbank site will be the first large-scale utilization of renewable hydrogen from waste biomass to produce drop-in renewable jet and diesel fuel,” said Eric McAfee, Chairman and CEO of Aemetis. “The Carbon Zero process decarbonizes transportation vehicles that carry heavier loads and travel long distances, including cargo and passenger airlines as well as commercial trucks.”
“In order to mitigate or reverse climate change, new clean energy technology solutions are required to meet the transportation sector’s growing demand,” McAfee stated. “Aemetis Carbon Zero’s readiness and scalability separate it from other renewable fuel production technologies.”
Aemetis Carbon Zero production plants are designed to convert below zero carbon feedstocks (waste wood and agricultural waste) and renewable energy (solar, renewable natural gas, hydroelectric power) into energy dense liquid renewable fuels, including drop-in jet and diesel fuel. Aemetis expects that the renewable fuels, when used in aviation, trucking, 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 Aemetis Carbon Zero 1 project, the Aemetis Biogas renewable natural gas project, and energy efficiency upgrades to the Aemetis Keyes plant include $38 million of grant funding and other support from the USDA, the US Forest Service, the California Energy Commission, the California Department of Food and Agriculture, and PG&E’s energy efficiency program.
Aemetis has a mission to transform renewable energy into below zero carbon 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 immediately “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 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 Riverbank, California to convert renewable electricity from solar and hydroelectric sources along with renewable hydrogen from waste orchard wood into renewable jet fuel, renewable diesel, cellulosic ethanol and renewable hydrogen. 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 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.