55 year Lease Agreement at Former Army Munitions Facility
CUPERTINO, CA / ACCESSWIRE / October 18, 2017 / Aemetis, Inc. (NASDAQ: AMTX) announced today that its Aemetis Advanced Products Keyes subsidiary signed a 55 year lease at a former US Army munitions facility located in Riverbank, California which is near the existing Aemetis biofuels plant in Keyes, California. The long-term lease provides for the construction of a cellulosic ethanol biorefinery using patented and proprietary process technologies developed by Aemetis, Lanzatech, and InEnTec to convert waste orchard wood and nutshells into low carbon cellulosic ethanol. The project could generate more than 1,900 direct and indirect jobs, and will lower greenhouse gas (GHG) emissions in the Central Valley by significantly reducing the current practice of openly burning waste orchard wood. In addition, the low carbon cellulosic ethanol transportation fuel produced at this site will also lower GHG emissions in the state as it can run up to 80% cleaner than conventional gasoline.
The Central Valley of California produces more than 1.6 million tons of waste orchard wood and nutshells each year from approximately 1 million acres of almond, walnut, and pistachio orchards. As part of Phase 1, Aemetis plans to produce more than 10 million gallons of cellulosic ethanol annually to help meet cellulosic ethanol production requirements under the federal Renewable Fuel Standard and the increasing demand for low carbon biofuels under California's Low Carbon Fuel Standard. The current market price of cellulosic ethanol sold in California is estimated to be more than $4.50 per gallon, which is approximately $3.00 more per gallon than conventional ethanol.
The existing Aemetis biorefinery in Keyes, California produces more than 60 million gallons of ethanol annually. Aemetis plans to construct multiple phases of cellulosic ethanol production and add more than 40 million gallons per year of cellulosic ethanol capacity at the Riverbank, CA site.
Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of second-generation ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California's Central Valley, near Modesto. Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India, the US and Europe. Aemetis operates a research and development laboratory, and holds a portfolio of patents and related technology licenses for the production of 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 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, the Company's plans to add capacity to its existing ethanol plant in Keyes, California, the ability of the Company to finance the construction of the cellulosic ethanol phases, and the ability of the Company to operate the cellulosic ethanol phases. Words or phrases such as "anticipates," "may," "will," "should," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "showing signs," "targets," "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 the price of ethanol and cellulosic ethanol, 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, 2016, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 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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SOURCE: Aemetis, Inc.