Aemetis finalizes $7B in supply contracts for SAF and renewable diesel
September 8, 2022
Aemetis, Inc., a renewable fuels company focused on negative carbon intensity products, announced today that $7 billion of sustainable aviation fuel (SAF) and renewable diesel (RD) supply agreements have been signed with 10 airlines for a total of 916 million gallons of blended SAF, including a contract with Cathay Pacific that was signed by Aemetis today.
Previously, Aemetis announced a contract with a major travel stop chain for 450 million gallons of renewable diesel. The combined value of the 10 airline contracts, including incentives, is approximately $3.8 billion.
The airline supply agreements provide for the delivery of SAF over a seven-to-ten year time period. Airline customers include Delta Air Lines, Jet Blue Airlines and oneworld Alliance members American Airlines, Alaska Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines and Qantas.
The blended SAF is 40 per cent “neat” sustainable aviation fuel and 60% petroleum jet fuel to meet international blended sustainable aviation fuel standards. The SAF is scheduled to be delivered to San Francisco International Airport (SFO) and Los Angeles International Airport (LAX) as blended fuel, and the RD is expected to be delivered to Northern California truck fueling locations.
The sustainable aviation fuel and renewable diesel will be produced at the Aemetis production plant currently under development in Riverbank, California. The facility is designed to use renewable hydrogen and zero carbon intensity hydroelectric electricity to hydrotreat sustainable renewable oils to produce SAF and RD.
Sustainable aviation fuel has a significant environmental advantage over traditional jet fuel, with up to a 100 per cent reduction in greenhouse gas (GHG) emissions on a lifecycle basis when utilizing low carbon energy and feedstocks along with carbon sequestration. SAF is a vital solution in the decarbonization of aviation in the near and medium-term, particularly for longer-haul flights. Offtake agreements – as well as targeted investments and government support mechanisms – will enable the airline and trucking industry transitions towards low carbon, low emission, renewable fuels.
“Sustainable aviation fuel has a vital role in meeting aviation’s decarbonization targets, so we are pleased to complete another milestone in the drive toward SAF use at commercial scale,” said Eric McAfee, the founder, chairman and CEO of Aemetis. “The Aemetis plant process design for the Riverbank plant utilizes renewable oils, renewable hydrogen and renewable power to produce advanced renewable fuels that reduce greenhouse gas emissions and improve air quality.”
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