Aemetis, Inc. (NASDAQ: AMTX) announced that its “Carbon Zero” biofuels production process has received a total of $16.8 million of solar energy and other energy efficiency grants to fund upgrades of the Keyes, California plant to support the production of zero carbon renewable fuel. The renewable energy and efficiency projects funded by the grants already have been launched into the design, permitting, construction and commissioning process. The projects supported by grant funding will provide an estimated $18 million per year of increased margin, equal to about $0.75 net income per share each year.
Aemetis Carbon Zero production plants commercialize patented technology exclusive to Aemetis for agricultural and forest waste wood feedstock. Carbon Zero plants are integrated with existing Aemetis production facilities to produce energy dense renewable fuels using renewable energy and below zero carbon intensity waste feedstocks.
Carbon Zero production plants are designed to convert below zero carbon feedstocks (waste wood and ag wastes) and renewable energy (solar, renewable natural gas, biogas) into energy dense liquid renewable fuels. Aemetis expects that such renewable fuels, when used in 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 award of a combined $16.8 million of California Energy Commission and Pacific Gas & Electric energy efficiency programs to fund the ‘Carbon Zero 1’ biofuels plant reflects government and utility industry support for our mission to reduce greenhouse gases,” stated Eric McAfee, Chairman and CEO of Aemetis. “We are installing a large solar array with battery storage and using other renewable energy sources to power new electricity-powered systems, replacing equipment that uses high carbon intensity petroleum natural gas and upgrading less efficient heat transfer systems.”
“These Carbon Zero plant upgrades at the Keyes plant are an integrated part of producing below zero carbon biofuels from agricultural waste wood,” said McAfee. “By combining below zero carbon waste wood with zero carbon renewable energy obtained from solar, hydroelectric and biogas sources, Aemetis is transforming these sources of renewable energy into zero carbon renewable fuels to power existing engines and to fuel range extender generators used in electric cars and trucks,” McAfee noted.
The Carbon Zero 1 plant renewable energy and energy efficiency upgrades include funding and other support from the California Energy Commission, the USDA, the US Forest Service, the California Department of Food and Agriculture, and PG&E.