Aemetis Signs Agreement with Cathay Pacific to Supply 38 Million Gallons of Sustainable Aviation Fuel
Fuel to be delivered to San Francisco International Airport
CUPERTINO, CA – September 19, 2022 – Aemetis, Inc. (NASDAQ: AMTX), a renewable fuels company focused on negative carbon intensity products, announced today the volume of an offtake agreement that has been signed with Cathay Pacific Airways Limited (“Cathay Pacific”) for 38 million gallons of blended sustainable aviation fuel (“SAF”) to be delivered over the 7 year term of the agreement.
Sustainable aviation fuel provides significant environmental benefits compared to petroleum jet fuel, including a lower lifecycle carbon footprint and reduced contrails. The blended sustainable aviation fuel to be supplied under this agreement is 40% SAF and 60% Petroleum Jet A to meet international blending standards.
The supply agreement with Aemetis builds on Cathay Pacific’s ongoing commitment towards meeting its net-zero carbon emissions target by 2050. Cathay Pacific plans to use SAF for 10 percent of its total fuel consumption by 2030. The agreement also underlines oneworld Alliance’s commitment to collectively source SAF. Cathay Pacific is a founding member of the oneworld Alliance.
Cathay Pacific is the home airline of Hong Kong, offering scheduled passenger and cargo services to destinations in Asia, North America, Australia, Europe and Africa. The Cathay Pacific Group also comprises low-cost airline HK Express and express freighter airline Air Hong Kong. Cathay Pacific is a member of the Swire Group and is listed on the Hong Kong Stock Exchange (HKSE).
The sustainable aviation fuel is expected to be produced by the Aemetis renewable jet/diesel plant under development on a 125 acre former U.S. Army Ammunition production plant site in Riverbank, California. The blended sustainable aviation fuel is scheduled to begin deliveries to Cathay Pacific in 2025.
“The use of sustainable aviation fuel by Cathay Pacific is another step by the oneworld Alliance toward lowering the environmental impact of aviation,” stated Eric McAfee, Chairman and CEO of Aemetis. “Sustainable aviation fuel is an immediate solution to the decarbonization of air travel and cargo flights, without requiring extensive new fueling infrastructure or the expensive replacement of planes.”
Powered by 100% renewable electricity, the Aemetis Carbon Zero production plant design utilizes renewable hydrogen. The renewable hydrogen is used to hydrotreat vegetable and other renewable oils to produce renewable aviation and diesel fuel.
To further reduce carbon intensity, the Aemetis Carbon Zero design includes capturing CO2 from the production plant and injecting the compressed CO2 into a sequestration well at the Riverbank site. The project is designed to permanently store an estimated 300,000 metric tonnes of CO2 each year from the plant.
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 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, 2020 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.