Aemetis, Inc., a renewable fuels company focused on negative carbon intensity products, has an offtake agreement with American Airlines for 280 million gallons of blended fuel containing sustainable aviation fuel (“SAF”) to be delivered over the 7-year term of the agreement. The aggregate value of the agreement is estimated to be more than $1.1 billion, including LCFS, RFS, 45Q and tax credits.
Sustainable aviation fuel provides significant environmental benefits compared to petroleum jet fuel, including a lower lifecycle carbon footprint. The blended Sustainable Aviation Fuel to be delivered under this agreement is 40% SAF and 60% Petroleum Jet A to meet international blending standards.
American’s agreement with Aemetis builds on the airline’s efforts to reach net-zero carbon emissions by 2050. The airline has also committed to set a science-based target for the year 2035 and has aligned with the aviation industry goal of replacing 10% of conventional jet fuel with sustainable aviation fuel by 2030.
The sustainable aviation fuel is expected to be produced by the Aemetis renewable jet/diesel plant under development on a 125-acre former US Army Ammunition production plant site in Riverbank, California. (Earlier post.) The blended sustainable aviation fuel is expected to be available for use by American starting in 2024.
Powered by 100% renewable electricity, the Aemetis Carbon Zero plant design utilizes cellulosic hydrogen made from carbon negative waste wood. The below zero carbon intensity, cellulosic hydrogen then is used to hydrotreat vegetable or other renewable oils to produce aviation and diesel fuel. The process technology is licensed from Axens (France), a global technology provider to the oil and chemical industries.
To further reduce carbon intensity, the Aemetis Carbon Zero production process includes injecting CO2 from the production plant into a sequestration well at the Riverbank plant site to permanently capture an…