via NewMediaWire --
Aemetis, Inc. (NASDAQ: AMTX),
a renewable natural gas and renewable fuels company focused on
negative carbon intensity products, announced
today
that it has opened negotiations for the
supply of 1.6 million metric tonnes (MT) per year of CO2 for Carbon
Capture and Sequestration (CCS) to be located at or near the two
Aemetis renewable fuels plant sites in Central California near
Modesto. It is anticipated that the capacity of each
injection well site will be approximately one million metric tonnes
per year, for a combined total of two million MT of CO2
sequestration per year.
“The existing California LCFS and IRS 45Q carbon capture and
sequestration programs could potentially generate approximately
$500 million per year of revenues from injecting a combined two
million metric tonnes of CO2 per year at these two plant sites,”
said Eric McAfee, Chairman and CEO of Aemetis, Inc. “The
Aemetis Carbon Capture projects are expected to benefit producers
of traditional and renewable fuels that supply California by
offsetting carbon emissions with carbon sequestration.”
According to the EPA, approximately one metric tonne of CO2 is
emitted for every 2,500 miles driven in a passenger car.
Capturing and sequestering two million metric tonnes of CO2 can
offset the CO2 emissions from up to 5 billion passenger car miles
each year, equal to the annual carbon emissions from approximately
350,000 cars.
Recently, the Aemetis Carbon Capture, Inc. subsidiary was
established to build carbon sequestration projects to generate LCFS
and IRS 45Q credits by injecting CO2 into wells which are monitored
for emissions to ensure the long-term sequestration of carbon
underground. California’s Central Valley is well established as a
major region for large-scale natural gas production and CO2
injection projects due to the subsurface geologic formation that
retains gases.
When related to transportation fuels produced for sale in the
California market, CO2 sequestered underground is estimated to
generate revenue of approximately $200 per metric tonne under the
California Low Carbon Fuel Standard (LCFS). The IRS 45Q tax
credit value for sequestered CO2 is approximately $50 per metric
tonne. The combined $250 per metric tonne of revenues from
the capture and storage of CO2 is expected to increase
significantly due to pending Congressional legislation to support
CCS.
A Stanford University Center for Carbon Storage study issued in
October 2020 cited ethanol plants in Central California as the most
economic sites for CCS in California, comparing 61 carbon emission
facilities in the state. The other emission sources in the
study that produce transportation fuels, primarily oil refineries,
are the primary potential suppliers of CO2 to the Aemetis carbon
storage injection wells and monitoring facilities.
The planned 52 dairies in the Aemetis Biogas project are
expected to produce approximately 50,000 metric tonnes of CO2 each
year. The renewable jet/diesel plant under development is
expected to produce more than 200,000 metric tonnes per year of
CO2. The remaining 1.6 million metric tonnes of annual CO2
injection capacity are expected to be filled by compressed CO2
delivered via truck or rail to the two Aemetis CCS sites from
renewable diesel plants and refineries that supply fuels to the
California market.
The Aemetis Carbon Zero project, the Aemetis Biogas renewable
natural gas project, and energy efficiency upgrades to the Aemetis
Keyes plant include $57 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,
CAEFTA, and PG&E’s energy efficiency program.
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 (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 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 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
technology, the ability to obtain sufficiently low Carbon Intensity
scores to achieve below zero transportation fuel, the development
of the Aemetis Carbon Capture projects, and the ability to access
the funding required to execute on 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, 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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