California Central Valley is a facility of CO2Injection region supporting carbon sequestration projects for Aemetis Dairy RNG projects, ethanol plant and renewable jet / diesel plant under development
CUPERTINO, CA, April 01, 2021 (GLOBE NEWSWIRE) – via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on carbon-negative products, today announced that the company’s board of directors has approved the creation of a new subsidiary named Aemetis Carbon Capture, Inc. The Central Valley of California is well established as a major region for large-scale CO2injection projects due to the geological formation of an underground shale cover layer that safely contains and retains gases.
The company’s business carbon capture unit will capture, dehydrate, compress and initially sequester CO2Aemetis Biogas’ anaerobic dairy digester projects to further reduce the carbon intensity (CI) of its dairy biogas, which was recently certified by CARB as negative 426 (-426) for an established fuel industry by Aemetis using biogas from the company’s first two dairy farms anaerobic lagoon digesters for the production of renewable fuel. Currently the carbon intensity score of Aemetis dairy biogas -426 does not include the value of CO2 Carbon capture and sequestration (CCS).
The 52 dairies planned in the Aemetis Biogas projects are expected to produce around 1.4 million MMBtu of renewable natural dairy gas and around 50,000 metric tonnes of CO.2every year. The Aemetis ethanol plant currently produces approximately 150,000 metric tonnes of CO2per year, and the renewable jet / diesel plant under development is expected to produce 160,000 tonnes per year of CO2.
When linked to the production of transport fuels, CO2sequestered underground is estimated at around $ 200 per metric ton according to the California Low Carbon Fuel Standard (LCFS). The value of the IRS 45Q tax credit for sequestered CO2is about $ 50 per tonne.
According to the EPA, approximately one metric ton of CO2is issued every 2,500 miles traveled in a passenger vehicle. Capture and sequester annual CO2biogas generated by 52 dairies can offset CO2emissions of up to 125,000,000 miles from passenger cars.
“Significant new legislation has been introduced in Congress to support the existing LCFS and IRS 45Q carbon intensity reduction programs in California with additional subsidies for carbon sequestration, investment tax credits and investment tax credits. ‘other forms of support, “said Eric McAfee, President and CEO of Aemetis, Inc.” The formation of Aemetis Carbon Capture, Inc. is a key step in achieving a significant increase in the value of RNG adding carbon capture and sequestration to reduce the carbon intensity of RNG produced from dairies. Aemetis Biogas projects with carbon sequestration by Aemetis Carbon Capture offer dairies a compelling opportunity to avoid liability for methane emissions under the LCFS program. Over the next five years, Aemetis plans to invest more than $ 300 million in RNG and CCS dairy projects that are already operational or in development, ”added McAfee.
The Aemetis Biogas Dairy Central Digester Project is a 36-mile dairy digesters and pipeline with gas cleaning and compression that are built, owned and operated by Aemetis Biogas LLC. The project produces renewable methane which is converted to carbon-negative RNG for transportation to replace petroleum-based diesel fuel. It is estimated that 25% of total methane emissions in California are produced by dairy waste lagoons.
In September 2020, Aemetis Biogas LLC completed two dairy digesters and four miles of private biogas pipeline, which are already powering the production of low-carbon biofuels at Aemetis’ ethanol plant in Keyes, California. A 32 mile extension of the Aemetis pipeline recently received CEQA permit approval to transport biogas from Stanislaus and Merced counties dairies to the Keyes plant for biogas cleaning and conversion to RNG for sale as transportation fuel.
The company plans to begin construction on the next five dairy digesters and the additional 32 miles of biogas pipeline in the second quarter of 2021, with five more dairy digesters scheduled to begin construction in the third quarter of 2021 and five digesters starting in the first quarter. 2022, for a planned total of 17 dairy digesters and a 36-mile biogas pipeline in service by the second quarter of 2022.
The common shares of Aemetis Biogas LLC are 100% owned by Aemetis, Inc.
Headquartered in Cupertino, Calif., 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 emissions of greenhouse gas. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California network of biogas digesters and pipeline system to convert dairy waste gases into renewable natural gas (RNG). Aemetis owns and operates a 65 million gallon per year ethanol plant in the Central Valley of California, near Modesto, which 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 Integrated Renewable Jet and Carbon Zero Diesel Fuel Biorefineries in California to use distillery corn oil from ethanol plants to produce renewable low carbon jet and diesel fuel using gasoline. cellulosic hydrogen from orchard wood waste and other carbon-negative biomass, and pre-extract cellulosic sugars from the waste biomass to be transformed into high-value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and related technology licenses to produce renewable fuels and biochemicals. For more information on Aemetis, please visit www.aemetis.com.
Safe Harbor Declaration
This press release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, objectives, intentions or beliefs regarding future events or other statements that are not historical facts. Forward-looking statements contained in this press release include, without limitation, statements relating to the construction and operation of the Dairy Digester and Pipeline Project in Central California, the construction and operation of the projects. central California carbon capture and sequestration, ongoing government programs and support for renewable fuels, continued compliance and qualification under government programs, and the ability to access markets and funding to run our business plans for biogas and carbon capture. Words or expressions such as “foresee”, “may”, “will”, “should”, “believe”, “estimate”, “expect”, “intends”, “plan”, “Predicted”, “plans”, “” showing signs “,” targets “,” view “,” likely to 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 stated or suggested by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may arise from current weather conditions, financial market risks, adoption by clients , counterparty risks, risks associated with changes in federal policy or regulations 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, 2020 and in our subsequent filings with the SEC. We do not have to and do not intend to update these forward-looking statements at any time, unless an update is required by applicable securities laws.
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