Benzinga | Feb 1, 2021 08:21AM EST

Aemetis Opens Bid Proposal Process For $2B Offtake Agreement For 'Carbon Zero' Renewable Jet And Diesel Fuels

Aircraft and Trucks to be Supplied with 'Carbon Zero' Drop-In Biofuels using Solar and Hydro Electricity-Powered Systems to Convert Renewable Hydrogen and Biomass into Biofuel

CUPERTINO, CA, Feb. 01, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis, Inc. (NASDAQ:AMTX) announced today that it has opened the bid proposal process for $2 billion of offtake contracts for the launch of the Aemetis "Carbon Zero" plant #1 to commercialize patented technology exclusive to Aemetis for the production of renewable jet fuel and renewable diesel for the aviation and commercial truck markets.

The Aemetis "Carbon Zero 1" plant has a planned capacity of 23 million gallons per year and will be located at the 142-acre Riverbank Industrial Complex, a former US Army ammunitions plant in Riverbank, California.

The patented technology exclusive to Aemetis enables organizations that use jet and diesel fuel such as online marketplaces, package delivery companies, logistics firms and commercial airlines to meet aggressive carbon reduction goals by accelerating their transition away from fossil-based fuels.

The Carbon Zero process converts renewable waste biomass into renewable hydrogen, then uses the renewable hydrogen, solar power, hydro-electric power and low carbon feedstocks to produce zero carbon and drop-in fuels. The jet and diesel fuels may be used in today's airplane, truck, and ship fleets without changes in fueling infrastructure or modified engines.

According to the EPA, about 28% of U.S. carbon emissions are emitted by the transportation sector, posing a significant challenge to reducing greenhouse gas emissions (GHG). New business mandates that include corporate climate commitments and Environmental/Social/Governance (ESG) investing are significantly increasing the demand for low-carbon transportation alternatives.

"We expect the Aemetis Carbon Zero 1 biorefinery at the Riverbank site will be the first large-scale utilization of renewable hydrogen from waste biomass to produce drop-in renewable jet and diesel fuel," said Eric McAfee, Chairman and CEO of Aemetis. "The Carbon Zero process decarbonizes transportation vehicles that carry heavier loads and travel long distances, including cargo and passenger airlines as well as commercial trucks."

"In order to mitigate or reverse climate change, new clean energy technology solutions are required to meet the transportation sector's growing demand," McAfee stated. "Aemetis Carbon Zero's readiness and scalability separate it from other renewable fuel production technologies."

Aemetis Carbon Zero production plants are designed to convert below zero carbon feedstocks (waste wood and agricultural waste) and renewable energy (solar, renewable natural gas, hydroelectric power) into energy dense liquid renewable fuels, including drop-in jet and diesel fuel. Aemetis expects that the renewable fuels, when used in aviation, trucking, hybrid electric vehicles or other vehicle engines, will have a "below zero carbon" greenhouse gas footprint across the entire lifecycle of the fuel, based on the Argonne National Laboratory's GREET model, the pre-eminent science-based lifecycle analysis measurement tool.

The Aemetis Carbon Zero 1 project, the Aemetis Biogas renewable natural gas project, and energy efficiency upgrades to the Aemetis Keyes plant include $38 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, and PG&E's energy efficiency program.