Aemitis Receives Air Permits for Planned California SAF Plant
(Cupertino, California) Renewable fuels and biochemicals company Aemetis (NASDAQ:AMTX) said yesterday (March 5th) that it has received Authority to Construct (ATC) air permits for its planned sustainable aviation fuel (SAF) and renewable diesel production plant in Riverbank, California; the permits were issued by the San Joaquin Valley Air Pollution Control District following a technical review.
Photo of Aemetis' Riverbank, California 'Carbon Zero 1' site, courtesy of Aemetis.
Aemetis' forthcoming plant is designed to produce 90 million gallons per year when allocating 50% to SAF and 50% to renewable diesel production, and 78 million gallons per year when allocating 100% of production to SAF for the aviation market, according to a press release from the company.
Aemetis initially received approvals in September from the city of Riverbank after a separate technical review, and "together, these permits are the key permits needed for Aemetis to proceed with engineering and financing to construct the plant," reads today's press release.
“Building our sustainable aviation fuel business is a high priority to meet rapidly increasing global demand for SAF from airlines,” said Eric McAfee, Chairman and CEO of Aemetis. “Achieving this essential permitting milestone is a critical step in advancing the project to financing, procurement, and construction. Reflecting the positive environment for replacing petroleum jet fuel with SAF, the $380 billion Inflation Reduction Act includes specific SAF tax credits to support this type of project, and the USDA has provided financing support for other Aemetis renewable fuels projects to enable attractive 20-year guaranteed funding from lenders.”
Aemetis' five-year plan projects its SAF and renewable diesel plant will generate $672M in revenues with $195M of adjusted EBITDA in 2027, per [Seeking Alpha]((https://seekingalpha.com/news/4076121-aemetis-receives-air-permits-for-planned-california-sustainable-aviation-fuel-plant).
“The issuance of the ATC permits for the Aemetis SAF/RD plant is a significant milestone in the development of the Riverbank Industrial Complex that will help reduce emissions and create hundreds of high value local and regional jobs,” said Richard O’Brien, Mayor of the City of Riverbank. “As the lead agency for the CEQA and Use Permit that was issued last September, the City of Riverbank is pleased to see support from other regional and state agencies to move this project forward. This Aemetis project will invest hundreds of millions of dollars into the local economy, which will benefit the citizens of Riverbank as well as workers and businesses throughout the region.”
The 125-acre Riverbank Industrial Complex has 100% renewable hydroelectricity; a rail line and storage for 120 railcars; 710,000 square feet of buildings; and 50 acres of developable industrial land, according to Aemetis’ press release. An agreement for the lease/sale of the Riverbank Industrial Complex to a subsidiary of Aemetis was signed in December 2021.