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Aemetis provide updates of RNG, cellulosic ethanol projects

By Erin Voegele | March 13, 2020
Aemestis Inc. released fourth quarter financial results on March 12, reporting increased revenues and progress with the development of its cellulosic ethanol and renewable natural gas (RNG) projects. During an earnings call, Eric McAfee, chairman and CEO of Aemetis, said the company has signed participation agreements with 17 dairies for its RNG project. The company has also built and tested two dairy lagoon digesters, and has designed and permitted a 4-mile pipeline that is now under construction to connect the dairy digesters to its corn ethanol plant in Keyes, California. The RNG project is currently expected to begin generating revenue for Aemetis during the second quarter of this year. According to McAfee, the company plans to complete construction of the next 15 digesters by the end of 2021.

McAfee also provided an update of the company’s proposed 12 MMgy cellulosic ethanol plant in Riverbank, California, that will employ LanzaTech gas microbe ethanol production technology. Last year, Aemetis signed three significant financings related to the Riverbank project, including a $5 million grant from the California Energy Commision, a $12.5 million tax waiver that offsets equity funding required for the project, and the signing of a $125 million United States Department of Agriculture conditional commitment letter for a 20-year debt financing under the 9003 biorefinery program, according to McAfee. Currently, he said the company is focused on completing engineering of the plant required for the negotiation of the engineering, procurement and construction (EPC) contract. McAfee said financial closing to being construction of the Riverbank plant is dependent on completing the engineering and procurement work required for the signing of the construction contract. During the call, McAfee also described several upgrades that are being made to the company’s Keyes ethanol plant. One upgrade involves the development of a carbon dioxide liquification plant by Linde Gas adjacent to the Keyes plant. McAfee said construction on the CO2 capture equipment and piping for the Keyes plant was complete in January. Once the project becomes fully operational in the second quarter, the new liquification plant is expected to convert approximately 150,000 tons per year of CO2 produced by the Keyes plant into liquid CO2 for sale to local food processors, beverage producers and other industrial users.

The Keyes plant is also adding a Mitsubishi membrane dehydration system to the Keyes plant. That dehydration unit was delivered to the Keyes plant in late February, McAfee said, and is currently being installed. Aemetis is also working to add a solar microarray, high-efficiency heat exchanger, and mechanical vapor recompression system to the Keyes plant. Aemetis also operates a biodiesel plant in India. The company reported revenues of $52.1 million for the fourth quarter of 2019, up from $38.8 million for the same period of last year. Gross profit was $5.8 million, compared to a gross loss of $1.9 million. Operating profit was $1 million, compared to an operating loss of $6.7 million reported for the same period of 2018. Net loss attributable to Aemetis was $6.7 million, compared to a net loss of $11.4 million for the fourth quarter of the previous year. For the full year, revenues reached $202 million, up from $171.5 million in 2018. Gross profit was $12.7 million, up from $5.4 million. Operating loss for 2019 reached $4.9 million, compared to an operating loss of $10.9 million for 2018.

http://biomassmagazine.com/articles/16886/aemetis-provide-updates-of-rng-cellulosic-ethanol-projects

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