Aemetis signs 10-year, 450M-gallon renewable diesel supply agreement
December 21, 2021 By Aemetis
Aemetis, Inc., a renewable fuels company focused on negative carbon intensity products, has signed a 10-year, 450-million-gallon renewable diesel supply agreement with an industry-leading travel stop company, which is expected to generate more than US$3 billion in revenue.
Renewable diesel is a drop-in fuel that significantly reduces greenhouse gases and other emissions from heavy duty vehicles that would otherwise use petroleum diesel.
The renewable diesel to be supplied under the agreement will fuel an estimated 3.6 billion miles of heavy truck and cargo transportation.
The travel stop company is continuing its strategy to diversify its fuelling operations. Renewable diesel provides environmental benefits and performance enhancements compared to petroleum diesel.
“This supply agreement represents the largest supply contract signed by Aemetis for our Riverbank Carbon Zero Plant,” said Eric McAfee, the founder, chairman and CEO of Aemetis. “Combined with $2.1 billion of signed sustainable aviation fuel contracts, we have now signed more than $5 billion of binding offtake contracts related to the Riverbank production facility and also have MOU’s signed with seven airlines for additional contracts.”
The 90 million gallon per year Aemetis Carbon Zero sustainable aviation fuel and renewable diesel plant under development in two phases in Riverbank, California is designed to produce below zero carbon intensity renewable fuels. The design utilizes cellulosic hydrogen from waste forest and orchard wood along with onsite CO2 carbon sequestration and zero carbon intensity hydroelectric electricity. The demand for renewable diesel has increased as a result of policies including the California Low Carbon Fuel Standards and the federal Renewable Fuel Standard that require reductions in carbon emissions from transportation.
The Aemetis Carbon Zero plant is being built on the 125-acre former U.S. Army Ammunition plant in Riverbank, Calif. The industrial site has 710,000 s.f. of existing production and office buildings, a 125-car railroad with ladder tracks, and a 22 megawatt power substation with high capacity power lines delivering hydroelectric power to the site.
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