Tuesday, May 28, 2024
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Aemetis receives authority to construct air permits for Riverbank sustainable aviation fuel plant

Aemetis, a leading renewable natural gas and renewable fuels company, announced the receipt of Authority to Construct (ATC) air permits for its upcoming sustainable aviation fuel (SAF) and renewable diesel (RD) production facility in Riverbank, California. The plant is slated to produce 90 million gallons annually, with an equal split between SAF and renewable diesel, or 78 million gallons solely for the aviation market.

Issued by the San Joaquin Valley Air Pollution Control District after rigorous technical assessments and two public feedback sessions, the ATC permits represent a pivotal regulatory milestone. Aemetis had previously secured approval from the City of Riverbank for Use Permit and California Environmental Quality Act (CEQA) review in September 2023, following another thorough review and public input process. These permits now pave the way for Aemetis to proceed with engineering, procurement, and construction activities for the plant.

Eric McAfee, Chairman and CEO of Aemetis, expressed the company’s commitment to meeting the escalating global demand for sustainable aviation fuel: “Establishing our sustainable aviation fuel business is a top priority in response to the surging need from airlines worldwide. Achieving this crucial permitting milestone is a significant stride towards advancing the project to financing, procurement, and construction stages.”

McAfee further highlighted the supportive legislative environment, noting provisions within the $380 billion Inflation Reduction Act that offer specific tax credits for sustainable aviation fuel projects. He also acknowledged financial backing from the USDA for Aemetis’ renewable fuels initiatives, facilitating favorable 20-year guaranteed funding from lenders.

Richard O’Brien, Mayor of the City of Riverbank, hailed the issuance of the ATC permits as a momentous occasion for the Riverbank Industrial Complex. O’Brien emphasized the project’s potential to curb emissions, generate numerous high-value local and regional employment opportunities, and inject hundreds of millions of dollars into the local economy. Moreover, he underscored the project’s positive impact on air quality in the Central Valley and its contribution to greenhouse gas reduction efforts.

The Riverbank Industrial Complex spans 125 acres and boasts 100% renewable hydroelectricity, a rail line with storage for 120 railcars, 710,000 square feet of buildings, and 50 acres of industrially developable land. A lease/sale agreement for the complex to a subsidiary of Aemetis was executed in December 2021.

Aemetis projects that the sustainable aviation fuel and renewable diesel plant will generate $672 million in revenues and $195 million in adjusted EBITDA by 2027 as part of its Five Year Plan.

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