Planned Upgrades Expected to Reduce Natural Gas Use, Lower Carbon Intensity of Biofuel, and Decrease Operating Costs by $13 Million Per Year
CUPERTINO, CA, Jan. 28, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Aemetis, Inc. (NASDAQ: AMTX) (“Aemetis”) announced today that its subsidiary Aemetis Advanced Fuels Keyes, Inc. has received from the California Energy Commission two grants for a combined total of $14 million to implement upgrades that would reduce natural gas use, lower greenhouse gas emissions, decrease operating costs, and reduce the carbon intensity (“CI”) of fuel grade ethanol produced at the Keyes plant. The cost reduction and revenues increase associated with the upgrades are expected to improve the operating cash flow of the Keyes plant by $13 million each year.
Aemetis plans to install a 1.56-megawatt photovoltaic micro grid solar array with integrated battery energy storage and an AI-driven power distribution control system, which is expected to significantly reduce the natural gas currently used in generating on-site electricity. In addition, Aemetis plans to upgrade the facility’s evaporation and distillation units with a mechanical vapor recovery system (“MVR”) to further reduce the use of natural gas, lowering CI and increasing expected plant production capacity by approximately 25%.
The new AI-driven distribution control system is expected to improve operational efficiency, assist data collection and analysis, and support employee training. The upgrades are also expected to create new construction and regular full-time jobs at the Keyes plant and the surrounding communities.
Aemetis will also administer a scholarship program that will fund 10 annual scholarships, at $3,000 each, aimed at mentoring local students in STEM related careers.
“Aemetis is implementing technologies that allow the traditional biofuels industry to enter a new era of improved operational efficiency and lower carbon intensity renewable fuel, which we expect will result in a significant reduction of carbon content in renewable energy,” said Eric McAfee, Chairman and CEO of Aemetis, Inc. “When fully implemented at the Keyes plant, these projects are planned to result in a double-digit reduction in the carbon intensity of our ethanol and significantly improve our operating cash flow by more than an estimated $18 million per year, all while lowering greenhouse gas emissions and creating new jobs. We are grateful to the California Energy Commission for their support and confidence, and we look forward to implementing these upgrade projects,” added McAfee.
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 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, statements relating to the construction and operation of the fuel and feed production facility in Keyes, California, the plans to implement certain technological upgrades, and the ability to access various government programs. 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 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 (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2018, 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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