amtx_8k.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 28, 2022

 

AEMETIS, INC.

(Exact name of registrant as specified in its charter)

______________

 

Delaware

 

001-36475

 

26-1407544

(State or Other Jurisdiction

 of Incorporation)

 

(Commission

 File Number)

 

(I.R.S. Employer

 Identification No.)

 

20400 Stevens Creek Blvd., Suite 700

Cupertino, CAlifornia 95014

(Address of Principal Executive Office) (Zip Code)

 

(408) 213-0940

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Title of class of registered securities Common Stock, par value $0.001 per share

Ticker Symbol

AMTX

Name of exchange on which registered

NASDAQ

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

 

Item 7.01. Regulation FD Disclosure

 

Eric McAfee, Chief Executive Officer and Chairman of Aemetis, Inc. (the “Company”), is scheduled to provide certain investor information, including investor presentations commencing on Monday, February 28, 2022. The slide package prepared by the Company for use in connection with these presentations is furnished herewith as Exhibit 99.1. This investor presentation is available in the Investors – Presentations section of Aemetis’s website at www.aemetis.com. All of the information in the attached presentation is presented as of February 28, 2022, and the Company does not assume any obligation to update such information in the future.

 

On February 28, 2022, the Company issued a press release announcing highlights of the investor presentations. The full text of the press release is attached as Exhibit 99.2 to this Current Report on Form 8-K.

 

The information included in this Form 8-K, as well as the exhibit referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

EXHIBIT NUMBER

 

DESCRIPTION

 

 

 

Exhibit 99.1

 

Investor Presentation

 

 

 

Exhibit 99.2

 

Press Release

 

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Aemetis, Inc.

 

 

 

 

 

February 28, 2022

By:

/s/ Eric A. McAfee

 

 

 

Eric A. McAfee

 

 

 

Chief Executive Officer

 

 

 

 

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EXHIBIT 99.1

 

 

 

 

 

Aemetis, Inc. (Nasdaq: AMTX) Leading the Production of Below Zero Carbon Intensity Renewable Natural Gas and Renewable Fuels For Airplanes, Trucks, Cars and Electric Vehicles February 28, 2022

 
 

 

 

 

This presentation 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 presentation include, without limitation, statements relating to our five-year growth plan, future growth in revenue, net income and adjusted EBITDA, the market size for our products, expansion into new markets, our ability to commercialize and scale licensed patented technology, the ability to obtain sufficiently low Carbon Intensity scores to achieve below zero carbon intensity transportation fuels, the development of the Aemetis Biogas Central California Dairy Project, the development of the Aemetis Carbon Zero 1 plant at the Riverbank site, the upgrades to the Aemetis Keyes ethanol plant, the development of our carbon capture and sequestration projects, and the ability to access the funding required to execute on project 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 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. Non-GAAP Financial Information We have provided non-GAAP measures as a supplement to financial results based on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying supplemental data. Adjusted EBITDA is defined as net income/(loss) plus (to the extent deducted in calculating such net income) interest expense, loss on extinguishment, income tax expense, intangible and other amortization expense, accretion expense, depreciation expense, and share-based compensation expense. Adjusted EBITDA is not calculated in accordance with GAAP and should not be considered as an alternative to net income/(loss), operating income or any other performance measures derived in accordance with GAAP or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA is presented solely as a supplemental disclosure because management believes that it is a useful performance measure that is widely used within the industry in which we operate. In addition, management uses Adjusted EBITDA for reviewing financial results and for budgeting and planning purposes. EBITDA measures are not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison. Disclaimer 2

 
 

 

 

 

Aemetis at a Glance 3

 
 

 

 

 

Third Generation Technology to Reverse Climate Change 1st Generation Renewable Energy = Use the Sun’s energy Solar, Wind, Hydro and Nuclear do not absorb carbon from the atmosphere. These energy sources are slowing the rate of heating the Earth as coal and natgas plants continue to operate globally. 2nd Generation Renewable Energy = Use the Sun’s Energy and Absorb CO2 Renewable fuels use large scale agriculture to absorb sunlight and CO2 in photosynthesis, including renewable diesel, ethanol, biodiesel, and jet fuel. The renewable CO2 is emitted during production. 3rd Generation Renewable Energy = Use Sun’s Energy, Absorb and Sequester CO2 Using renewable fuels for Carbon Capture & Sequestration (CCS) siphons carbon from the atmosphere into crops which are converted into renewable fuels, then the solar energy is released as transportation energy while the CO2 from biofuels production is injected underground. 3rd Generation Renewable Energy maximizes California Low Carbon Fuel Standard (LCFS), US Renewable Fuel Standard (RFS), Blenders Tax Credit (BTC), and IRS 45Q credit values. These regulations are an objective measure of the positive impact of each project on reversing Climate Change. 4

 
 

 

 

 

Below Zero Carbon Intensity Market Opportunity Federal and California low carbon renewable fuel standards require oil refiners and other obligated parties to blend increasing amounts of renewable fuels into transportation fuel sold in the United States. Renewable fuels with “below zero” carbon intensity, such as dairy biogas and cellulosic hydrogen from orchard waste, generate more revenues than traditional renewable fuels which have higher carbon intensity. The 2007 Federal Energy Independence and Security Act states military, economic and environmental reasons for increasing renewable fuels to 36 billion gallons per year in the US. The California Low Carbon Fuel Standard (LCFS) is expected to generate deficits as the regulatory demand for credits continues to increase annually. The renewable diesel Blenders Tax Credit of $1.00 per gallon is expected to increase for aviation fuel. 5 Economic incentives created by state and federal regulatory frameworks support the production of renewable natural gas and advanced biofuels from non-food feedstocks by providing valuable renewable fuel credits known as California LCFS credits, federal RINs and IRS 45Q. Oregon and other states are now adopting the California carbon reduction program.

 
 

 

 

 

Highly Experienced Management and Board of Directors Lydia Beebe – Former 38 years at Chevron, including Senior Chevron Corporate Officer for 20 years John Block – Former U.S. Secretary of Agriculture from 1981-86 under President Reagan Fran Barton - Former CFO of five high tech companies with revenues more than $1 billion Naomi Boness, PhD – Head of Stanford Univ Natural Gas Initiative; former Chevron project planning and strategy Timothy Simon, Esq. – Former California Public Utilities Commission board member; natural gas industry consultant Eric McAfee - Chairman of the Board and CEO Founder of Aemetis (NASDAQ: AMTX) and co-founder of $1.6 billion revenues Alto Ingredients (NASDAQ: ALTO) Founding shareholder of oil production company Evolution Petroleum (NYSE: EPM) Founded eight public companies and funded twenty-five private companies as principal investor Andy Foster - EVP and President, Aemetis Advanced Fuels Joined Aemetis in 2006 Senior executive at three Silicon Valley tech companies Served in the George H.W. Bush White House (1989-1992) as Associate Director of the Office of Political Affairs Deputy Chief of Staff for Illinois Governor Edgar for five years Todd Waltz - EVP and CFO Joined Aemetis in 2007 Served in senior financial management roles with Apple for 12 years Ernst & Young CPA Sanjeev Gupta - EVP and President, Aemetis International Joined Aemetis in 2007 Previously head of petrochemical trading company with $250 million of annual revenue and offices on several continents Board of Directors Our highly experienced management team and board of directors have extensive industry knowledge, regulatory relationships, project development and operational experience. 6

 
 

 

 

 

Aemetis Circular Bioeconomy 7

 
 

 

 

 

Aemetis Expansion Plans 8 1. The information on this slide constitutes forward-looking statements. All projections are subject to change and based upon current expectations.

 
 

 

 

 

Aemetis Projected Revenue Growth by Business Unit 9 The information on this slide constitutes forward-looking statements. All projections are subject to change and based upon current expectations.

 
 

 

 

 

Aemetis Projected EBITDA Growth by Business Unit 10 The information on this slide constitutes forward-looking statements. All projections are subject to change and based upon current expectations.

 
 

 

 

 

Projected Consolidated Revenues and Adjusted EBITDA 1 The information on this slide constitutes forward-looking statements. All Revenues, Net Income, and Adjusted EBITDA projections are subject to change and based upon current expectations. Revenue and Adjusted EBITDA Growth Plan 11

 
 

 

 

 

Net Income to EBITDA Reconciliation Projected Consolidated Net Income to Adjusted EBITDA Reconciliation 1 12 The information on this slide constitutes forward-looking statements. All projections are subject to change and based upon current expectations.

 
 

 

 

 

Aemetis Capital Expenditures by Business Unit 1. The information on this slide constitutes forward-looking statements. All projections are subject to change and based upon current expectations. Sources of Project Debt Funding: - USDA Renewable Energy for America Program (REAP) - California Tax-Free Municipal Private Activity Bonds - Department of Energy Loan Programs Office (LPO)

 
 

 

 

 

Aemetis Low Carbon Ethanol: High octane, high oxygen, clean fuel for gasoline and Ethanol Fuel Cell electric vehicles 14

 
 

 

 

 

Plan for Revenue and Earnings Growth: California Ethanol Plant 15 Reduced natural gas and electricity costs create $8 million of Projected EBITDA per year Reduced carbon intensity under LCFS generates $15 million of Projected EBITDA

 
 

 

 

 

Aemetis Biogas: Negative Carbon Intensity Dairy Renewable Natural Gas for Trucks, Buses and Electric Vehicles 16

 
 

 

 

 

# Digesters Plan for Revenue and Earnings Growth: Below Zero CI Dairy RNG Project Aemetis Dairy RNG Digesters, Pipeline, Gas Cleanup and Utility Interconnection Project Constructing biomethane digesters at dairies connected by pipeline to a gas cleanup and compression facility at existing Aemetis ethanol plant to collect dairy biogas and produce Renewable Natural Gas (RNG) to displace diesel. Products and Key Markets Carbon intensity negative 426 Biogas used by ethanol plant monetizes LCFS value RNG sales to local trucking customers via onsite station RNG sold into natural gas pipeline May be converted to Electricity for EV and hybrid vehicles Aemetis Ethanol Plant Completed Dairy Digesters Phase 2 and 3 Dairy Digesters Pipeline 17 Growth Two digesters and 4-mile pipeline completed Q3 2020 New dairy digesters and 30+ mile pipeline expected in 2022 Planned Expansion to 66 dairies (of 1,200 dairies in CA) with 25 year agreements Ethanol plant supplies about 80 dairies with animal feed 2 –> 2020YE 12 –> 2022YE 66 –> 2026YE Dairy Digester Planned Expansion

 
 

 

 

 

Plan for Revenue and Earnings Growth: Below Zero CI Dairy RNG Project dRNG Project Funding Plan Automatically-redeemed preferred equity for $30 million (funded under 2019 financing) $23 million of California grants awarded for digesters, gas cleanup and interconnect to utility pipeline Grant for RNG dispensing station at Keyes plant USDA $50 million long term debt under Renewable Energy for America Program (REAP) (in process) USDA $150 million long term debt under Renewable Energy for America Program (REAP)(2023) 18

 
 

 

 

 

Sustainable Advantage in Below Zero Carbon Intensity Dairy RNG Aemetis has established a significant competitive advantage with - 426 CI dairy Renewable Natural Gas in CA California passed Senate Bill 1383 to cause dairies to capture methane from dairy waste lagoons or buy LCFS credits to offset methane emissions About 1,200 dairies with 1.7 million cows in California (Wisconsin ranks 2nd with 1.2 million cows) 25% of methane emissions in California are emitted from dairy lagoons Existing Aemetis 65 million gallon ethanol plant supplies about 2 million pounds per day of animal feed to about 120,000 dairy cows at approximately 80 dairies in the Central Valley near the Keyes plant Aemetis Biogas funds, builds, owns, operates and generates RNG project revenues immediately by using biogas in the Aemetis ethanol plant as soon as production begins, without waiting for permitting and construction of RNG gas cleanup hub and utility pipeline interconnection Dairies sign 25 year supply and lease agreements with Aemetis Biogas at fixed rates Estimated $6 million average capex cost per dairy for digester, H2S removal unit, pressurized pipeline, biogas cleanup, compression, and utility pipeline interconnection Strong relationships with dairies for feed supply enabled Aemetis to sign 24 dairy participation agreements and obtain $23 million of grants from CDFA, CEC and PG&E Credibility and previous work with County and State permitting agencies enabled Aemetis to build Phase I with 2 dairy digesters, pipeline and Keyes plant biogas unit in only 1 year (compared to up to five years for digesters by other CA developers) – CEQA approval has been obtained for entire 36 mile pipeline of Phase II Having the trust of the dairy owner is the key to rapid growth in dairy RNG, since a 25 year supply contract and land lease is a substantial relationship commitment by the dairy owner 19

 
 

 

 

 

Aemetis “Carbon Zero” Renewable Fuels Plants: Renewable Jet/Diesel Fuel Produced with Carbon Sequestration and Zero Carbon Intensity Electricity 20

 
 

 

 

 

Millions of Tons of Local Below Zero Carbon Intensity Feedstock Biomass-to-Energy Plants Closing in California Biomass-to-Energy plants decreased from 33 plants to 5 plants Unable to compete with subsidized solar and wind energy More than 1.5 million acres of Almonds/Walnuts in California 2+ million tons/year of Ag Waste that is usually burned in the field Almond Growers pay for orchard removal Negative 100 Carbon Intensity expected Field Burning Increasing without Market for Waste Wood Source: San Joaquin Valley Air Control District Emergency Meeting on Open Burning November 2017 21

 
 

 

 

 

UC Davis Feedstock Study Results 22 Study Conclusions Confirmed air emissions assumptions for carbon intensity score under LCFS Confirmed biomass growth and availability Projected feedstock pricing 20-year guaranteed supply due to lifecycle of trees

 
 

 

 

 

Below Zero Carbon Intensity Feedstock Contract Signed 23 Negative carbon intensity feedstock supply agreement for orchard waste wood in Central California 20-year orchard waste wood supply agreement at fixed prices Signed with one of the largest almond wood and walnut wood processors in the world 130,000+ ton per year supply agreement for orchard waste wood for about $20 per ton Price adjustment for actual trucking costs during contract period Trucks moving waste wood are scheduled to use negative 426 carbon intensity, dairy Renewable Natural Gas from Aemetis Biogas project at low cost to trucking operators

 
 

 

 

 

Final acquisition agreement for the 125-acre Riverbank Industrial Complex site was signed in December 2021 Former U.S. Army Ammunition Plant 125 acres of industrial and commercial land 710,000 s.f. of existing buildings Railroad with 120 railcar storage 100% low carbon hydroelectric power with onsite 20 megawatt substation Environmental Impact Report (EIR) completed Riverbank, California Site 24

 
 

 

 

 

“Carbon Zero” Renewable Jet/Diesel Plants with Carbon Sequestration Gasification Syngas to Hydrogen Biomass Feedstock (Negative CI) Orchard Wood Waste Vineyard Wood Waste Forest Waste (CI varies) Pre-Extraction of Sugars to Produce Cellulosic Ethanol at Keyes plant Feedstock Jet and Renewable Diesel Feedstock Electricity Byproduct Syngas Hydroprocessing of non-edible Oils Syngas converted to - 80 Below Zero CI Cellulosic Hydrogen Non-Edible Oils Distillers Corn Oil Tallow Camelina/Carinata 25 Zero Carbon Intensity Electricity from Hydroelectric Power Carbon Sequestration

 
 

 

 

 

“Carbon Zero” Renewable Jet/Diesel Plants with Carbon Sequestration Projected Income Statement for Carbon Zero Plants1 Construction of the Aemetis “Carbon Zero” Renewable Jet/Diesel Plants with Carbon Sequestration implement patented technologies to produce high value, low carbon renewable fuels. 26 1. The information on this slide constitutes forward-looking statements. All projections are subject to change and based upon current expectations.

 
 

 

 

 

Aemetis Carbon Capture: Carbon Capture & Sequestration (CSS) of CO2 for Renewable Fuels Plants and Refineries in California 27

 
 

 

 

 

Aemetis Carbon Capture and Sequestration Projects in California Formerly an inland ocean now known as the Central Valley of California Light green area shows shale geological storage containing saline water for CCS Shale caprock layer at approximately 7,000 ft depth and basement layer below CO2 storage formation Few CCS projects in active development in California due to lack of CO2 pipelines and distance from sources of CO2 and CCS sites Aemetis plans to sequester a combined two million metric tonnes of CO2 per year at two sites located nearby our biofuels plants - 400,000 MT per year from biogas and biofuels plant operations - 1.6 million MT per year of carbon sequestration using CO2 supplied by renewable fuels plants and oil refineries Two million MT/CO2 per year = $500 million annual revenues at $200 LCFS + $50 IRS 45Q Trucking using Aemetis RNG lowers carbon intensity and significantly reduces costs Aemetis Carbon Zero Jet/Diesel Plant Aemetis Advanced Fuels Ethanol Plant 28

 
 

 

 

 

Ethanol Plants are Largest Reduction in Costs = Highest Value CCS Projects 29

 
 

 

 

 

Emission Comparison and Capture Cost Decreased Capture Cost with Pre-existing On Site CO2 Compression system Inverse relationship between plant emissions and storage capability Highest Emitters lack the geological positioning Aemetis has ability to receive CO2 by rail and inject into well 30

 
 

 

 

 

Aemetis Carbon Capture & Sequestration Project Leaders ATSI: Carbon Sequestration Project Manager, Engineering and EPC For more than 40 years, ATSI has provided world-class Front-End Engineering Design (FEED/FEL), project management, EPC and commissioning services Major projects completed at more than 60 oil refineries, including commissioning of $10 billion oil refinery Completed 138 commercial projects in 21 different states Baker Hughes: Underground Engineering and Well Drilling Leading natural gas and crude oil drilling company $20 billion market value Operates in 120+ countries CCUS Technology Solutions include: Pre-FEED and FEED consultation and project design Capture and purification Injection Well design and construction for storage Micro-seismic expertise 31

 
 

 

 

 

Sustainability: 32

 
 

 

 

 

Aemetis International: India Distilled Biodiesel and Refined Glycerin Plant 33

 
 

 

 

 

34 India Biodiesel/Glycerin Plant Fully Upgraded 34 Significant tax penalty for diesel not containing biodiesel was adopted by India government in early 2022 to become effective October 2022, significantly increasing biodiesel demand.

 
 

 

 

 

Aemetis, Inc. (Nasdaq: AMTX) Eric McAfee, Chairman/CEO [email protected] 35

 
 

 

EXHIBIT 99.2

 

 

External Investor Relations

Contact:

Kirin Smith

PCG Advisory Group

(646) 863-6519

[email protected]

Company Investor Relations/

Media Contact:

Todd Waltz

 (408) 213-0940

[email protected]

 

 

 

Aemetis Unveils 2022 Five Year Plan Targeting $1.5 Billion of Revenue and

 $461 Million of Adjusted EBITDA by 2026

 

CUPERTINO, CA – February 28, 2022 – Aemetis, Inc. (NASDAQ: AMTX), a leading producer of below zero carbon intensity dairy Renewable Natural Gas and developer of the “Carbon Zero” renewable jet/diesel biorefineries with carbon sequestration, today released the 2022 Five Year Plan that projects the company will generate $1.5 billion in revenues and $461 million of adjusted EBITDA in year 2026.  

 

The Revenues plan reflects a projected compound annual growth rate of 39% and the EBITDA plan reflects a projected compound annual growth rate of 79% for the years 2022 to 2026.

 

The Aemetis 2022 Five Year Plan will be presented at the Credit Suisse Vail Energy Conference on Monday, February 28th at 10 a.m. Eastern time by Eric McAfee, the Chairman and CEO of Aemetis.  The presentation will be available at www.aemetis.com and will be filed with the SEC under Form 8-K.

 

The conference presentation by Mr. McAfee will focus on negative carbon intensity Renewable Natural Gas, sustainable aviation fuel and renewable diesel fuel produced using carbon sequestration of CO2, and additional low- and below-zero-carbon products from the Aemetis ecosystem of renewable projects. Aemetis has signed offtake agreements with an aggregate value of up to approximately $5.7 billion for these products during the past year.

 

 
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“Despite external pandemic and regulatory issues this past year, Aemetis successfully executed in line with the first year of the 2021 Five Year Plan, and we are providing the 2022 Five Year Plan to provide additional insight into the growth of the company through 2026,” said Eric McAfee, Chairman and CEO of Aemetis. “Significant milestones were achieved in the past year by Aemetis, including: completed seven more miles of RNG pipeline; completed construction of the biogas-to-RNG upgrading facility; completed construction of the PG&E gas pipeline interconnection unit; commenced construction of five dairy digesters with H2S removal units which are now being completed; signed the acquisition of the 125-acre Riverbank Industrial Complex with 100% renewable electricity, a rail line and storage for 120 railcars, 710,000 s.f. of buildings, and 50 acres of open land for construction of the Carbon Zero 1 renewable jet/diesel plant and carbon sequestration facilities; signed SunPower and Schneider Electric to construct a 1.9 megawatt solar microgrid with battery backup; completed construction and successfully tested the Mitsubishi ZEBREX electric ethanol/water separation facility; completed installation of five stainless steel tanks with 275,000 gallons of additional ethanol process tank capacity to support the operation of carbon reduction systems; and engineered the Mechanical Vapor Recompression unit at the Keyes plant to utilize low carbon intensity solar and grid electricity instead of petroleum natural gas.”

 

In the 2022 Five Year Plan, the Company’s revenue growth is primarily expected from dairy Renewable Natural Gas, the Aemetis “Carbon Zero” renewable jet/diesel plant, and two carbon sequestration CO2 injection wells installed near the California biofuels plant sites.  

 

The Aemetis Dairy RNG project plan shows projected revenues growing from $9.5 million in 2022 to $217 million in 2026, while Dairy RNG project EBITDA is expected to expand from $1.6 million in 2022 to $185 million in 2026.  The plan includes the delays related to the regulatory process to obtain LCFS credit pathway approvals for each dairy digester.  Aemetis has been awarded $23 million of grants related to dairy RNG and related gas cleanup and utility pipeline interconnection units, including a $1 million grant to install an RNG dispensing station to fuel RNG trucks at the Keyes plant.

 

The projected $217 million of dairy RNG revenues in year 2026 represents less than one percent of the addressable market for negative carbon intensity RNG, with a projected increase in demand for Aemetis -426 carbon intensity RNG to produce electricity to power the expected growth of heavy electric vehicles such as cargo trucks, buses, waste haulers and drayage trucks.

 

The Aemetis “Carbon Zero 1” renewable jet/diesel plant is planned to generate $623 million of revenues and $147 million of adjusted EBITDA in year 2026.

 

By completing carbon reduction upgrades and expansions of its current operating ethanol and biodiesel plants, the Company expects to generate annual revenue in ethanol and biodiesel of approximately $560 million by 2026, up from about $283 million of expected revenue in 2022, an increase of 98%.  

 

Aemetis expects that this revenue acceleration will occur from full operation and expansion of the India biodiesel plant, as well as completion of system upgrades currently in process at the Keyes ethanol plant.  The Keyes ethanol plant upgrades include the Mitsubishi ZEBREX ceramic membrane ethanol/water separation unit and mechanical vapor recompression to re-use steam along with high efficiency heat exchangers, powered by a zero-carbon intensity solar array with battery storage.

 

Aemetis has received $16.8 million of grant funding to support its carbon reduction upgrades at the Keyes plant, as well as $5 million of California Energy Commission grants for the renewable jet/diesel plant.  Approximately $57 million of grants to support Aemetis projects have been awarded by the USDA, the US Forest Service, the California Energy Commission, the California Department of Food and Agriculture, and PG&E’s energy efficiency program.

 

 
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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 plants produce below zero carbon intensity fuels that can immediately “drop in” to be used in airplane, truck and ship fleets.  Aemetis below-zero and 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 bioproducts company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products.  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 1 plant in Riverbank, California to utilize renewable electricity from solar and hydroelectric sources along with renewable oil feedstocks to produce sustainable aviation fuel and renewable diesel.  Aemetis holds a portfolio of patents and related technology licenses for the production of renewable fuels and bioproducts.  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 five year growth plan, future growth in revenue, net income and adjusted EBITDA, the market size for our products, expansion into new markets, our ability to commercialize and scale the technology, the ability to obtain sufficiently low Carbon Intensity scores to achieve below zero carbon intensity transportation fuels, the development of the Aemetis Biogas Central California Dairy Project, the development of the Aemetis Carbon Zero 1 plant at the Riverbank site, the upgrades to the Aemetis Keyes ethanol plant, and the ability to access the funding required to execute on project 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 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.

 

 
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