California Plant Designed to Produce Advanced Biofuels with Below Zero Carbon Emissions
CUPERTINO, CA, Feb. 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Aemetis, Inc. (NASDAQ: AMTX) announced today that the USDA has issued a Conditional Commitment under the 9003 Biorefinery Assistance Program to guarantee a $125 million, 20-year loan to the Aemetis cellulosic ethanol plant to be built in Riverbank, California. The Riverbank plant is designed to convert orchard, forest and other biomass waste into cellulosic ethanol with below zero carbon emissions.
Following Phase I approval for a loan guarantee from the USDA in late 2016, Aemetis invested more than $10 million to build and operate an integrated demonstration plant, obtained an independent engineering review, secured the Riverbank site, signed an ethanol offtake agreement, entered into a 20-year fixed-price feedstock supply agreement, completed preliminary engineering, and obtained necessary environmental approvals in order to complete the requirements for the issuance of the USDA Conditional Commitment.
“The Aemetis Riverbank project is needed to meet the mandates set forth in the federal Renewable Fuel Standard and California’s Low Carbon Fuel Standard to improve air quality, reduce greenhouse gas emissions, expand domestic employment, reduce dependence on imported crude oil and attract investment into U.S. industrial projects,” said Eric McAfee, Chairman and CEO of Aemetis. “This USDA loan guarantee supports the conversion of waste orchard, forest and other biomass in California into clean, low carbon biofuels, launching the first phase of four Aemetis cellulosic biofuels plants planned in the Central Valley.”
The Conditional Commitment of the $125 million USDA loan guarantee is in addition to the recently granted $12 million California state tax waiver and the $5 million California Energy Commission Notice of Proposed Award for the Riverbank project. Preliminary engineering has been completed and construction of the Riverbank plant is expected to begin in mid-2019.
About Aemetis
Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California’s Central Valley, near Modesto. Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India, the US and Europe. Aemetis operates a research and development laboratory, and 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 the construction and operation of the cellulosic production facility in Riverbank, California, the plans to construct additional cellulosic facilities, and the ability to access various government programs. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “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 (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2017, 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.