via NewMediaWire --
Aemetis, Inc. (NASDAQ:
AMTX), a renewable fuels company focused on negative carbon
intensity products, announced today that it has signed a
non-binding term sheet and is working towards completing $100
million of new debt financing from Third Eye Capital of Toronto,
Canada. The debt financing is expected to be comprised
of $50 million for carbon reduction projects and $50 million for
working capital.
Aemetis has repaid more than $55 million of its
higher interest rate debt during 2021. The new, lower
interest rate debt financing is expected to provide funding for the
Aemetis initiatives that reduce the carbon intensity of renewable
fuels, including sustainable aviation fuel (SAF), renewable diesel,
carbon sequestration, and upgrades to the Keyes ethanol plant.
Cash and grants of more than $32 million have
already been invested in the Phase I, 45 million gallon per year,
Carbon Zero renewable jet and diesel plant in Riverbank. This new
debt facility is expected to provide the remaining funding to the
project from Aemetis prior to completion of additional project debt
financing. A $125 million USDA 9003 Biorefinery
Assistance Program guaranteed loan has been signed by Aemetis and
an additional $100 million under the USDA Renewable Energy for
America Program is in process.
The base interest rate for the $50 million carbon
reduction project financing will be 8% per year. The
base interest rate for the $50 million of working capital financing
will be 10% per year. Both credit facilities are
expected to have availability provisions based on the qualified use
of funds and other factors. Additional consideration to
the lender will include customary fees for 500,000 warrants at a
$20 per share exercise price.
“This new financing builds on our successful
relationship with Third Eye Capital, the company’s senior lender
since our first funding in 2008. We sincerely appreciate
their ongoing support for carbon reduction projects and operations
at Aemetis,” said Eric McAfee, Chairman and CEO of
Aemetis. “This lower interest rate debt supports the
development of the 90 million gallon per year Aemetis Carbon Zero
sustainable aviation fuel and renewable diesel plant, but also
fully funds the remaining Keyes plant upgrades to install solar and
MVR, as well as the two characterization wells for the Aemetis
Carbon Capture subsidiary to submit EPA Class VI CO2 sequestration
licenses at our two biofuels plant sites.”
The closing of the new debt financing is subject
to customary closing conditions. The commitments in respect of the
new debt financing and the terms and conditions thereof remain
subject to the finalization and execution of definitive
documentation.
Aemetis has signed a $1 billion, 250 million
gallon, 10 year supply agreement with Delta Air Lines to supply a
blend of 40% SAF and 60% petroleum jet fuel to San Francisco
Airport. 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.
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 carbon sequestration facilities, biogas lagoon digesters,
biogas cleanup and compression unit, construction and operation of
the biogas pipeline, our compliance with governmental programs, the
consummation of the new debt financing on the terms and conditions
set forth herein, our ability to obtain additional funding for our
projects, 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 Relations
Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com
Company Investor Relations/
Media Contact:
Todd Waltz
(408) 213-0940
investors@aemetis.com
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