Aemetis Signs Agreement with Japan Airlines to Supply 90 Million Gallons of Sustainable Aviation Fuel
Aemetis, a renewable fuels company (NASDAQ: AMTX), has signed a seven-year offtake agreement with Japan Airlines for 90 million gallons of blended sustainable aviation fuel (SAF). The agreement supports JAL's commitment to reduce conventional jet fuel consumption, targeting 1% by 2025 and 10% by 2030. The SAF blend consists of 40% SAF and 60% Petroleum Jet A, expected to start deliveries in 2025 from Aemetis' planned facility in Riverbank, California. This initiative is part of Aemetis’ mission to lower carbon emissions in aviation.
- Secured an offtake agreement with Japan Airlines for 90 million gallons of sustainable aviation fuel.
- Agreement aligns with Japan Airlines' goals to reduce conventional jet fuel consumption by 10% by 2030.
- Production to utilize renewable energy and contribute to California’s low carbon fuel standards.
- Deliveries of sustainable aviation fuel will not begin until 2025, delaying potential revenue stream.
- Dependence on future construction and operational success of the planned facility in Riverbank, California.
Fuel to be delivered to San Francisco International Airport
CUPERTINO, CA, Feb. 09, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis, Inc. (NASDAQ: AMTX), a renewable fuels company focused on negative carbon intensity products, announced today that an offtake agreement has been signed with Japan Airlines (“JAL”) for 90 million gallons of blended sustainable aviation fuel (“SAF”) to be delivered over the 7 year term of the agreement.
Sustainable aviation fuel provides significant environmental benefits compared to petroleum jet fuel, including a lower lifecycle carbon footprint and reduced contrails. The blended sustainable aviation fuel to be supplied under this agreement is
This supply agreement with Aemetis builds on JAL’s expanding effort for a future of net zero emission by 2050, plans to replace 1 percent of its conventional jet fuel consumption with sustainable aviation fuel (SAF) by 2025, and 10 percent by 2030. The agreement also underlines the oneworld Alliance’s commitment to collectively source SAF, of which JAL is a member. Japan Airlines is one of Japan's largest international airlines as of 2021. JAL operates more than 200 aircraft delivering more than 40 million passengers and approximately 500,000 tons of cargo globally.
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. The blended sustainable aviation fuel is scheduled to begin deliveries to JAL in 2025.
“The use of sustainable aviation fuel by Japan Airlines is another step by the oneworld Alliance toward lowering the environmental impact of aviation,” stated Eric McAfee, Chairman and CEO of Aemetis. “Our supply of SAF to the San Francisco International Airport is supported by the California Low Carbon Fuel Standard, creating new investment and jobs in disadvantaged minority communities in the state.”
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To further reduce carbon intensity, the Aemetis Carbon Zero design includes capturing CO2 from the production plant and injecting the compressed CO2 into a sequestration well at the Riverbank site. The project is designed to permanently store an estimated 200,000 metric tonnes of CO2 each year from the plant.
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 sustainable aviation and renewable diesel fuel projects our compliance with governmental programs, 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
FAQ
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