Aemetis Signs Agreement with American Airlines to Supply Sustainable Aviation Fuel
December 01 2021 - 8:00AM
via NewMediaWire –
Aemetis, Inc. (NASDAQ: AMTX), a renewable
fuels company focused on negative carbon intensity products,
announced today that an offtake agreement has been signed with
American Airlines for 280 million gallons of blended fuel
containing sustainable aviation fuel (“SAF”) to be delivered over
the 7 year term of the agreement. The aggregate value of the
agreement is estimated to be more than $1.1 billion, including
LCFS, RFS, 45Q and tax credits.
Sustainable aviation fuel provides significant environmental
benefits compared to petroleum jet fuel, including a lower
lifecycle carbon footprint. The blended Sustainable Aviation Fuel
to be delivered under this agreement is 40% SAF and 60% Petroleum
Jet A to meet international blending standards.
American’s agreement with Aemetis builds on the airline’s
efforts to reach net zero carbon emissions by 2050. The airline has
also committed to set a science-based target for the year 2035 and
has aligned with the aviation industry goal of replacing 10 percent
of conventional jet fuel with sustainable aviation fuel by
2030.
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 expected to be
available for use by American starting in 2024.
“The American Airlines team is committed to reducing emissions
from our operations, and sustainable aviation fuel is the
cornerstone of our strategy in this decade,” said Doug Parker,
Chairman and CEO of American Airlines. “We’re proud to join with
our oneworld partners in supporting the growth of SAF
through this agreement with Aemetis, and we’re eager to continue
collaborating with like-minded partners to meet aviation’s climate
challenge.”
“American Airlines is demonstrating its leadership in the
reduction of carbon emissions and improving air quality by using
Aemetis Carbon Zero sustainable aviation fuel,” said Eric McAfee,
the Founder, Chairman and CEO of Aemetis. “The Aemetis Carbon Zero
plant under development at the former Army Ammunitions Plant in
Riverbank, California is designed to utilize zero carbon
electricity, carbon negative hydrogen from waste wood, and
renewable oils along with CO2 sequestration to produce low carbon
sustainable aviation fuel.”
Powered by 100% renewable electricity, the Aemetis Carbon Zero
plant design utilizes cellulosic hydrogen made from carbon negative
waste wood. The below zero carbon intensity, cellulosic hydrogen
then is used to hydrotreat vegetable or other renewable oils to
produce aviation and diesel fuel. The process technology is
licensed from Axens (France), a global technology provider to the
oil and chemical industries.
To further reduce carbon intensity, the Aemetis Carbon Zero
production process includes injecting CO2 from the production plant
into a sequestration well at the Riverbank plant site to
permanently capture an estimated 200,000 metric tonnes per year of
CO2.
About Aemetis
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.
External Investor RelationsContact:Kirin SmithPCG
Advisory Group(646) 863-6519ksmith@pcgadvisory.com
Company Investor Relations/Media Contact:Todd
Waltz(408) 213-0940investors@aemetis.com
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