Aemetis to Supply Aer Lingus and British Airways With Sustainable Aviation Fuel (SAF) for Flights From San Francisco International Airport

Rhea-AI Summary

Aemetis, Inc. (NASDAQ: AMTX) has entered a multi-year agreement with International Airlines Group (IAG) to supply sustainable aviation fuel (SAF) starting in 2025. The deal involves 78,400 tonnes of SAF, projected to reduce CO2 emissions by 248,000 tonnes, roughly equivalent to removing 16,000 cars from the road. The SAF will be produced at Aemetis' Carbon Zero plant in California, designed to utilize 100% renewable electricity and sequester CO2. IAG has already invested $865 million in SAF purchases, emphasizing its commitment to achieving net zero carbon emissions by 2050.

Positive

• Multi-year contract with IAG to supply 78,400 tonnes of SAF strengthens revenue outlook.
• Projected reduction of 248,000 tonnes of CO2 emissions enhances environmental credibility.
• Production at Carbon Zero plant represents advancement in sustainable fuel technology.

Negative

• None.

Multi-year partnership with parent company IAG will see 78,400 tonnes (26m gallons) of SAF delivered to the airlines from 2025

CUPERTINO, CA, Aug. 22, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Renewable fuels company Aemetis, Inc. (NASDAQ: AMTX) announced today that it has agreed to a multi-year agreement with International Airlines Group (IAG) to supply sustainable aviation fuel (SAF) to help power both British Airways and Irish flag carrier Aer Lingus’ flights from San Francisco Airport from 2025.

IAG, parent company of both British Airways and Aer Lingus, will purchase a total of 78,400 tonnes¹ of SAF over seven years, enough to reduce CO2 emissions by up to 248,000 tonnes (the equivalent of taking over 16,000 cars off the road) across the same time period.

¹ Volumes refer to the neat, unblended quantity 

Eric McAfee, Chairman and CEO of Aemetis, said: “Sustainable aviation fuel continues to be shown to be a great solution to decarbonize aviation and can be used in existing aircraft engines. IAG is continuing to take a leadership position by the conversion of their fuel supply to the use of sustainable fuels. Our production of SAF in California is supported by the California Low Carbon Fuel Standard, creating new investment and jobs in disadvantaged minority communities in the state.” 

The SAF will be produced at the Aemetis Carbon Zero plant currently under development in Riverbank, California. This plant will be powered by 100% renewable electricity and is designed to sequester CO2 from the production process, significantly reducing the carbon intensity of the fuel.

Jonathon Counsell, Head of Sustainability at IAG, said: “SAF is key to decarbonizing aviation and IAG has to date committed $865 million in SAF purchases and investments.  We see great potential to develop a long-term partnership with Aemetis who is at the cutting edge of producing low carbon biofuels from sustainable wastes.”

International Airlines Group was the first airline group in the world to commit to achieving net zero carbon emissions by 2050 and the first European airline group to commit to using SAF for 10% of its fuel by 2030.

British Airways is committed to achieving net zero carbon emissions through a series of short, medium- and long-term initiatives as part of its BA Better World sustainability program.  In the short-term this includes improving operational efficiency, flying more fuel efficient aircraft, funding carbon offset and removal projects to mitigate emissions on UK domestic flights, and progressively introducing sustainable aviation fuels manufactured using carbon capture technology and waste feedstocks. In the medium to longer term the airline is continuing to invest in the development and scale up of sustainable aviation fuel and accelerating the growth of new technologies such as zero emissions hydrogen-powered aircraft and carbon capture technology.

Aer Lingus is committed to a lower-carbon future. A key focus of delivering Aer Lingus’ sustainability programme, in addition to SAF, is investment in new generation and more fuel-efficient aircraft such as the Airbus A320neo and A32l neo LR. Other significant efforts include establishing a robust carbon offsetting programme, driving operational fuel efficiencies, waste reduction and electrifying our ground operations fleet.

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.

About IAG

IAG is one of the world's largest airline groups with 533 aircraft flying to 279 destinations and carrying around 118 million passengers each year (pre-COVID). Its leading airlines in Spain, the UK and Ireland include Aer Lingus, British Airways, Iberia, Vueling and LEVEL.

About British Airways

More detail on British Airways’ sustainability plans can be found here. More details on British Airways’ sustainability programme, BA Better World can be found here.

About Aer Lingus 

Aer Lingus is the Irish flag carrier, founded in 1936. In summer 2022, Aer Lingus will operate over 100 routes, flying to over 71 direct routes and to 62 destinations from Ireland to the UK and Europe. The airline operates 16 transatlantic routes from Dublin, Shannon and Manchester UK to North America and the Caribbean. Aer Lingus is a 4-Star airline, awarded by Skytrax, the international air transport rating organization. Aer Lingus is a member of International Airlines Group (IAG), one of the world's largest airline groups. 

Aer Lingus was awarded Stage 1 IEnvA certification in June 2021. This is an environmental management and evaluation system designed to independently assess and improve the environmental performance of an airline. Aer Lingus has begun its journey to achieving Stage 2.

Find out more on Aer Lingus’ sustainability initiatives here: https://www.aerlingus.com/about-us/corporate-responsibility/sustainability/

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, 2021 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

What is the significance of Aemetis' agreement with IAG?

The agreement allows Aemetis to supply 78,400 tonnes of sustainable aviation fuel, significantly enhancing its revenue potential while advancing sustainability in aviation.

How much CO2 will Aemetis' SAF supply reduce?

The SAF supplied to IAG is projected to reduce CO2 emissions by up to 248,000 tonnes over the contract period.

When will Aemetis start supplying SAF to IAG?

Aemetis will begin supplying sustainable aviation fuel to IAG starting in 2025.

What is the expected impact of the SAF agreement on Aemetis' stock?

The agreement is anticipated to improve Aemetis' revenue outlook and enhance its market position in the renewable fuels sector, which could positively influence its stock performance.