CUPERTINO, CA – November 30, 2021 – Aemetis, Inc. (NASDAQ: AMTX), a renewable fuels company focused on negative carbon intensity products, announced today that memorandum of understanding’s have been signed with 8 airline members of the oneworld Alliance for 350 million gallons of blended fuel containing sustainable aviation fuel (“SAF”) to be delivered to San Francisco International Airport.
Once finalized, the agreements will cover the delivery of sustainable aviation fuel over a seven-year term beginning in 2024. oneworld members including Alaska Airlines, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines and Qatar Airways will look to utilize the sustainable aviation fuel for their operations at San Francisco Airport, with the potential for additional oneworld members to participate in the coming months.
The blended sustainable aviation fuel is 40% sustainable aviation fuel and 60% petroleum jet fuel to meet international blended sustainable aviation fuel standards.
Today’s announcement follows a joint request for proposals by oneworld member airlines to fuel suppliers – marking the first such effort announced by a global airline alliance to purchase sustainable aviation fuel and furthering the alliance’s commitment to the decarbonization of aviation. It builds upon the alliance’s target of 10% sustainable aviation fuel use across the alliance by 2030 and underlines the alliance’s commitment to collectively source sustainable aviation fuel.
oneworld was the first global airline alliance to commit to net zero emissions by 2050 – with sustainable aviation fuel a crucial pillar in oneworld’s pathway to carbon neutrality.
The sustainable aviation fuel will be produced at the Aemetis Carbon Zero plant currently under development in Riverbank, California. The facility will use waste wood to produce cellulosic hydrogen, which is then combined with wastes and non-edible sustainable oils and zero carbon intensity hydroelectric electricity to produce sustainable aviation fuel.
Sustainable aviation fuel has a significant environmental advantage over traditional jet fuel, with an up to 100% reduction in greenhouse gas emissions on a lifecycle basis. It is a vital solution in the decarbonization of aviation in the near and medium-term, particularly for longer-haul flights. While the technology exists today, sustainable aviation fuel is not yet available at scale. Offtake agreements like oneworld’s commitment – as well as targeted investments, regulations and government support mechanisms – will help enable the industry’s transition towards sustainable aviation fuel.
The announcement today is among the many partnerships in environmental sustainability at oneworld, overseen by the oneworld Environment and Sustainability Board chaired by IAG Head of Sustainability Jonathon Counsell and with representation from all 14 member airlines.
oneworld Chairman and Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker said: “Our alliance is standing together with the industry in supporting the transition to net-zero. As sustainable aviation fuel (SAF) will play an important role in meeting aviation’s decarbonization targets, we are proud to establish another milestone and drive the SAF use at commercial scale. We encourage all stakeholders to support our industry efforts to ensure the affordability and availability of SAF that meets the sustainability criteria as recognized by ICAO.”
oneworld CEO Rob Gurney said: “This announcement for the purchase of sustainable aviation fuel continues to demonstrate what we can achieve together as an alliance and underlines the importance of collaboration in the important work to advance environmental sustainability. This latest milestone signals our commitment in driving forward momentum for the development of sustainable aviation fuel, which is crucial in reducing carbon emissions in the aviation sector.”
“The Aemetis Carbon Zero plant under development in the Central Valley of California is designed to utilize zero carbon intensity electricity, negative carbon intensity hydrogen from waste wood, and renewable oils along with CO2 sequestration to produce low carbon intensity sustainable aviation fuel,” said Eric McAfee, the Founder, Chairman and CEO of Aemetis. “The plant is designed to reduce air pollution in local disadvantaged communities by reducing orchard wood burning in fields, while creating more than 2,000 direct and indirect jobs in a lower income agricultural area.”
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.
oneworld brings together 14 world-class airlines – Alaska Airlines, American Airlines, British Airways, Cathay Pacific Airways, Finnair, Iberia, Japan Airlines, Malaysia Airlines, Qantas, Qatar Airways, Royal Air Maroc, Royal Jordanian, S7 Airlines and SriLankan Airlines, and more than 20 of their affiliates. Fiji Airways is a oneworld connect partner. oneworld member airlines work together to deliver consistently a superior, seamless travel experience, with special privileges and rewards for frequent flyers, including earning and redeeming miles and points across the entire alliance network. Top-tier cardholders (Emerald and Sapphire) enjoy access to airport lounges and are offered extra baggage allowances. The most regular travelers (Emerald) can also use fast track security lanes at select airports. Learn more about the oneworld Alliance at oneworld.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, 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.