via NewMediaWire --
Aemetis, Inc. (NASDAQ:
AMTX), a leading producer of below zero carbon intensity dairy
Renewable Natural Gas and developer of the “Carbon Zero” renewable
jet/diesel biorefineries using negative carbon intensity hydrogen,
has rolled out a new five-year plan that positions the company to
generate $1.07 billion of revenues and $325 million of adjusted
EBITDA in year 2025.
The Revenues plan is a CAGR of 35% and the EBITDA
growth plan is a CAGR of 109% for the years 2021 to 2025.
The Aemetis five-year plan is being presented
today during the 2021 Credit Suisse Virtual Energy Conference,
including a one hour presentation on Tuesday, March 2 at 4 pm
Eastern time by Eric McAfee, the Chairman and CEO of
Aemetis. The presentation also will be filed today with
the SEC under Form S-8.
The conference presentation by Mr. McAfee will
include a question and answer session with two Credit Suisse
renewable energy stock analysts focused on negative carbon
intensity Renewable Natural Gas, renewable jet/diesel fuel produced
using cellulosic negative carbon intensity hydrogen, and other
below-zero-carbon projects that Aemetis is building to maximize the
value of the California Low Carbon Fuel Standard and federal
Renewable Fuel Standard.
“We are pleased with the improving external
environment for the Aemetis negative carbon intensity projects that
already have been in project development, engineering and
permitting for several years and are now generating revenue and
EBITDA growth,” said Eric McAfee, Chairman and CEO of Aemetis. “As
a leader in the fast-growing negative carbon intensity
transportation fuels industry, most of our senior management team
and board members have been executing on the Aemetis mission for up
to 15 years. We believe that we have the team, technology and
platform in place to execute on this five-year plan. The
$1 billion of revenues in year 2025 represents less than one
percent of the addressable market for our negative carbon intensity
RNG and renewable fuels, especially considering increasing demand
for negative carbon intensity electricity from Renewable Natural
Gas to power the expected rapid growth of electric vehicles with
estimated -416 carbon intensity dairy RNG from our projects.”
The majority of the Company’s revenue growth is
expected to come from California dairy Renewable Natural Gas and
the Aemetis “Carbon Zero” renewable jet/diesel plants using
negative carbon intensity cellulosic hydrogen produced from waste
almond orchard wood in Central California.
The Aemetis Dairy RNG project plan shows revenues
growing from $9 million in 2021 to $175 million in 2025, while
Dairy RNG project EBITDA expands from $4 million in 2021 to $141
million in 2025. Aemetis has been awarded $23 million of
grants related to dairy RNG and related gas cleanup and utility
pipeline interconnection units, including a $1 million grant to
install an RNG dispensing station to fuel RNG trucks at the Keyes
plant.
The Aemetis “Carbon Zero” renewable jet/diesel
plants utilizing estimated -80 negative carbon intensity cellulosic
hydrogen are planned to grow to $467 million revenues and EBITDA of
$136 million in year 2025.
The use of negative carbon intensity waste
materials as inputs to produce Renewable Natural Gas and Renewable
Jet/Diesel is an optimization of the operations and profit margins
of the existing Keyes 65 million gallon ethanol plant that is
operating at nearly full capacity.
To achieve growth in revenues and EBITDA, the use
of byproducts from the Keyes plant as inputs for production of
renewable fuels provides significant expansion to meet increasing
market needs for LCFS, RFS, IRS 45Q and other credits related to
low carbon transportation fuels (including electricity for electric
trucks and other EV’s).
The Dairy RNG and Jet/Diesel projects are the
result of the Company’s focus on maximizing the profitability of
its California ethanol plant. Negative carbon intensity
(estimated -416) Dairy RNG replaces high carbon intensity petroleum
natural gas in the Keyes plant, enabling significant reductions in
carbon intensity of the ethanol produced, thereby creating a larger
number of LCFS credits.
The Aemetis Carbon Zero jet and diesel plant
design commercializes patented technology exclusive to Aemetis for
the production of renewable jet fuel and renewable diesel for
aviation and commercial truck markets. The Aemetis
“Carbon Zero 1” plant has a planned capacity of 45 million gallons
per year and will be located at the 142-acre Riverbank Industrial
Complex, a former US Army ammunitions plant in Riverbank,
California.
Aemetis recently announced a $2 billion bid
process to airlines and fuel blenders for the Carbon Zero 1
plant.
The Carbon Zero process converts renewable waste
biomass such as waste orchard wood into renewable hydrogen, then
uses the hydrogen along with zero carbon sources of electricity
(solar, hydro-electric, wind) and low carbon feedstocks to produce
zero carbon and drop-in fuels. The jet and diesel fuels
may be used in today’s airplane, truck, and ship fleets without
significant changes in fueling infrastructure or engines.
The Aemetis “Carbon Zero” renewable jet/diesel
plant at the former Riverbank Army Ammunition facility increases
the profitability of the Keyes ethanol plant in two
ways: the most valuable high-volume use of corn oil from
the Keyes plant is to produce renewable diesel and jet
fuel. In addition, expensive corn brought 2,000 miles
from the Midwest to produce ethanol at the Keyes plant can be
replaced by local, negative carbon intensity sugars extracted from
orchard waste wood.
Extracting negative carbon intensity sugars from
below zero carbon intensity waste orchard wood (estimated CI of
-100) from the more than 1 million acres of almonds and walnuts in
the Central Valley enables valuable cellulosic ethanol to be
produced at the Keyes plant as cellulosic sugars replace expensive
corn sugars to feed yeast and produce ethanol.
The economics of cellulosic sugars are highly
compelling, since every 10% reduction of corn use and replacement
with cellulosic sugars from orchard waste wood results in more than
$30 million per year of additional EBITDA at Aemetis due to higher
value cellulosic ethanol at an estimated 90% lower feedstock cost
from waste wood. As the sugar extraction process is
commercialized, further updates to the five year plan will be
provided, since none of the economics of the sugar extraction
process and the production of cellulosic ethanol is included in the
Five-Year Plan disclosed today.
Prior to the February 2021 grant of a patent
exclusively licensed to Aemetis, the sugar extraction process has
not been widely adopted due to formerly high cost of extraction and
removal of sugars from orchard wood leaves 50% or more of the wood
as a byproduct, mostly in the form of low value
lignin.
The Aemetis “Carbon Zero” renewable jet/diesel
plant design takes advantage of the availability of more than 1.6
million tons per year of orchard waste wood in the Central Valley
by first extracting the C6 and C5 cellulosic sugars (which are
tanker trucked to the nearby Keyes ethanol plant to produce
cellulosic ethanol).
Then, patented gasification technology exclusively
licensed in California to Aemetis converts the remaining waste wood
into below zero carbon intensity renewable cellulosic hydrogen
(estimated -80 negative carbon intensity).
Renewable hydrogen is a valuable product to power
Electric Vehicles, and Aemetis is well positioned to become a large
producer of renewable hydrogen for transportation. However, a
4 billion gallon diesel market already exists in California and
other states are adopting the California LCFS policies to create
low carbon trading markets. In the Aemetis “Carbon Zero”
plants, cellulosic Hydrogen is used to hydrotreat the corn oil from
the Keyes plant and other sources to produce renewable jet and
diesel.
Using an estimated -80 carbon intensity cellulosic
hydrogen instead of +170 CI petroleum hydrogen, the profitability
of renewable diesel and jet fuel produced from cellulosic hydrogen
and low CI non-food corn oil from the Keyes ethanol plant is
increased significantly.
By completing carbon reduction upgrades and
expansions of its current operating ethanol and biodiesel plants,
the Company expects to generate annual revenue in ethanol and
biodiesel of approximately $426 million by 2025, up from about $227
million of expected revenue in 2021, an increase of
87%.
Aemetis expects that this revenue acceleration
will come from full operation and expansion of the biodiesel plant
as well as completion of system upgrades currently in process at
the Keyes ethanol plant.
The Keyes ethanol plant upgrades enable the
ethanol plant to operate using zero petroleum natural gas by
converting the existing ethanol dehydration unit (that uses
molecular sieves powered by petroleum natural gas) to
electricity-based equipment by installing the Mitsubishi ZEBREX
ceramic dehydration technology to separate ethanol and
water. The Keyes plant upgrades include mechanical vapor
recompression to re-use steam and high efficiency heat exchangers,
powered by a zero carbon intensity solar array with battery
storage.
Aemetis has received $16.8 million of grant
funding to support its carbon reduction upgrades at the Keyes plant
and $23 million to support the estimated -416 carbon intensity
dairy RNG project. Supporters includethe USDA, the US
Forest Service, the California Energy Commission, the California
Department of Food and Agriculture, and PG&E’s energy
efficiency program.
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 plants produce below zero
carbon intensity fuels that can immediately “drop in” to be used in
airplane, truck and ship fleets. Aemetis below-zero and
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 bioproducts company
focused on the acquisition, development and commercialization of
innovative technologies that replace traditional petroleum-based
products. 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
(RNG). 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 1 plant in Riverbank, California to convert renewable hydrogen
from waste orchard wood and renewable electricity from solar and
hydroelectric sources into renewable jet fuel, renewable diesel, as
well as cellulosic ethanol and renewable
hydrogen. Aemetis holds a portfolio of patents and
related technology licenses for the production of renewable fuels
and bioproducts. 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 our
five-year growth plan, future growth in revenue, net income and
adjusted EBITDA, market size for our products, expansion into new
markets, our ability to commercialize and scale the licensed
patented technology, the ability to obtain sufficiently low Carbon
Intensity scores to achieve below zero carbon intensity
transportation fuels, the development of the Aemetis Biogas Central
California Dairy Project, the development of the Aemetis Carbon
Zero 1 plant at the Riverbank site, the upgrades to the Aemetis
Keyes ethanol plant, and the ability to access the funding required
to execute on project construction and operations. Words or
phrases such as “anticipates,” “may,” “will,” “should,” “believes,”
“estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,”
“showing signs,” “targets,” “will likely result,” “will continue,”
“enable” 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,
2019, 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
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