Aemetis receives key permits to build SAF plant in California
Renewable fuels company Aemetis said that it has received key permits to build a plant that will produce sustainable aviation fuel (SAF) and renewable diesel in Riverbank, California.
The permits, issued by the San Joaquin Valley Air Pollution Control District, allow Aemetis to proceed with engineering and financing for the plant in Riverbank, California. The plant is designed to produce 90m gallons per year when allocating 50% to SAF and 50% to renewable diesel production, and 78m gallons per year when allocating 100% of production to SAF for the aviation market.
“Building our SAF business is a high priority to meet rapidly increasing global demand for SAF from airlines,” said Eric McAfee, Chairman and CEO, 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 $380bn 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,” added McAfee.
This is a significant step forward for Aemetis, as the company aims to meet the growing demand for SAF from airlines.
Aemetis has also received approval from the City of Riverbank for the project.
“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,” stated Richard O’Brien, Mayor of the City of Riverbank.
The project is expected to be operational by 2027 and generate $672m of revenues with $195m adjusted EBITDA in that year.
Aemetis is a renewable natural gas, renewable fuel and biochemicals company that develops technologies to replace petroleum-based products and reduce greenhouse gas emissions. The company operates a biogas digester network and pipeline system in California, and also owns and operates ethanol production facilities in California and India.