CUPERTINO, CA – March 24, 2016 – Aemetis, Inc. (NASDAQ: AMTX) announced today the acquisition of exclusive rights to award winning, carbon recycling company LanzaTech’s patented technology for the conversion of agricultural waste, forest waste, dairy waste and construction and demolition waste (CDW) to ethanol in California. The LanzaTech gas-to-ethanol technology enables Aemetis to convert these local California biomass wastes to advanced ethanol.
“The 60 million gallon per year ethanol plant in California owned and operated by Aemetis currently uses approximately 20 million bushels per year of feedstock, consisting primarily of corn and milo supplied from the Midwest,” stated Eric McAfee, Chairman and CEO of Aemetis. “By utilizing wastes from forest, dairy, orchard, vineyard, corn, rice, wheat and CDW sources that are local to our plant, we plan to reduce feedstock costs from more than $150 a ton to receiving tipping fees for waste feedstocks. This technology enables Aemetis to produce advanced ethanol that is valued up to approximately $3 per gallon more than traditional ethanol.”
“As a leader in low carbon fuels, Aemetis is ideally positioned to demonstrate the benefits of utilizing cellulosic waste and residues,” said Jennifer Holmgren, CEO of LanzaTech. “This project will leverage the existing infrastructure in a 1st generation biofuel facility enabling the economic production of advanced biofuels. Upgrading traditional ethanol plants to produce advanced ethanol using the LanzaTech Process represents a major breakthrough for the biofuels industry, allowing large scale adoption of low cost, low carbon energy crops, ag wastes and MSW that would otherwise require disposal in expensive landfills. This first example will enable us to further demonstrate the breadth of LanzaTech’s carbon recycling platform and create new opportunities in California.”
Aemetis is the first licensee of the LanzaTech technology in North America. The agreement provides for 12 years of exclusive rights in California based upon achieving certain milestones.
The first phase of the adoption of the LanzaTech technology by Aemetis will be an eight million gallon per year processing unit related to the Keyes plant, which under the agreement is planned to be built by the end of 2017. The agreement provides for an expansion to 32 million gallon per year process unit, as well as licenses for units that would be installed at other existing ethanol plants. The current price of advanced ethanol in California including federal, state and tax credit incentives is approximately $4.60 per gallon, compared to corn ethanol at about $1.60 per gallon.
The ethanol industry in the US is comprised of about 210 plants producing approximately 15 billion gallons per year of traditional ethanol. Under the federal Renewable Fuel Standard (RFS), up to 16 billion gallons per year of advanced ethanol may be produced under RFS mandates enforced by the EPA.
Headquartered in Cupertino, California, Aemetis is an advanced fuels and renewable chemicals company founded in 2006. Aemetis owns and operates a 60 million gallon per year ethanol and 420,000 ton animal feed plant in California. Aemetis also owns and operates a 50 million gallon capacity renewable chemicals and advanced fuels production facility on the East Coast of India producing high quality, distilled biodiesel and refined glycerin for customers in Europe and Asia. Aemetis operates a research and development laboratory at the Maryland Biotech Center, and holds nine granted patents on its Z-microbe and related technology for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.
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LanzaTech has developed a unique microbial capability that captures and recycles a broad spectrum of gases for fuel and chemical production. Proprietary microbes combined with innovative approaches in bioreactor design and process development have enabled rapid scale up to take place. The first 3 commercial units converting steel mill waste gases to fuels are being built; in China with Shougang; in Taiwan with China Steel and in Belgium with the world’s largest steel maker, ArcelorMittal. Across the supply chain, LanzaTech promotes a ‘carbon smart’ circular economy, where both gas providers and end users can choose to be resource efficient by recycling or “sequestering” carbon into new products rather than making them from fossil reserves.
Founded in New Zealand, LanzaTech has raised more than US$200 million from investors including Khosla Ventures, K1W1, Qiming Venture Partners, Malaysian Life Sciences Capital Fund, Petronas, Mitsui, Primetals, China International Capital Corp, Suncor and the New Zealand Superannuation Fund.
For more information about LanzaTech please visit: http://www.lanzatech.com.
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