Aemetis Signs Terms of $100 million of Construction and Working Capital Debt Financing

Base Interest Rate of 8% for Capital Projects and 10% for Working Capital Line

Aemetis, Inc. (NASDAQ: AMTX), a renewable fuels company focused on negative carbon intensity products, announced today that it has signed a non-binding term sheet and is working towards completing $100 million of new debt financing from Third Eye Capital of Toronto, Canada.  The debt financing is expected to be comprised of $50 million for carbon reduction projects and $50 million for working capital.

Aemetis has repaid more than $55 million of its higher interest rate debt during 2021.  The new, lower interest rate debt financing is expected to provide funding for the Aemetis initiatives that reduce the carbon intensity of renewable fuels, including sustainable aviation fuel (SAF), renewable diesel, carbon sequestration, and upgrades to the Keyes ethanol plant.

Cash and grants of more than $32 million have already been invested in the Phase I, 45 million gallon per year, Carbon Zero renewable jet and diesel plant in Riverbank. This new debt facility is expected to provide the remaining funding to the project from Aemetis prior to completion of additional project debt financing.  A $125 million USDA 9003 Biorefinery Assistance Program guaranteed loan has been signed by Aemetis and an additional $100 million under the USDA Renewable Energy for America Program is in process.

The base interest rate for the $50 million carbon reduction project financing will be 8% per year.  The base interest rate for the $50 million of working capital financing will be 10% per year.  Both credit facilities are expected to have availability provisions based on the qualified use of funds and other factors.  Additional consideration to the lender will include customary fees for 500,000 warrants at a $20 per share exercise price.

“This new financing builds on our successful relationship with Third Eye Capital, the company’s senior lender since our first funding in 2008.  We sincerely appreciate their ongoing support for carbon reduction projects and operations at Aemetis,” said Eric McAfee, Chairman and CEO of Aemetis.  “This lower interest rate debt supports the development of the 90 million gallon per year Aemetis Carbon Zero sustainable aviation fuel and renewable diesel plant, but also fully funds the remaining Keyes plant upgrades to install solar and MVR, as well as the two characterization wells for the Aemetis Carbon Capture subsidiary to submit EPA Class VI CO2 sequestration licenses at our two biofuels plant sites.” 

The closing of the new debt financing is subject to customary closing conditions. The commitments in respect of the new debt financing and the terms and conditions thereof remain subject to the finalization and execution of definitive documentation.

Aemetis has signed a $1 billion, 250 million gallon, 10 year supply agreement with Delta Air Lines to supply a blend of 40% SAF and 60% petroleum jet fuel to San Francisco Airport.  The sustainable aviation fuel is expected to be produced by the Aemetis renewable jet/diesel plant under development on a 125 acre former U.S. Army Ammunition production plant site in Riverbank, California. 

Powered by 100% renewable electricity, the Aemetis Carbon Zero plant design utilizes cellulosic hydrogen made from carbon negative waste wood. The below zero carbon intensity, cellulosic hydrogen then is used to hydrotreat vegetable or other renewable oils to produce aviation and diesel fuel. The process technology is licensed from Axens (France), a global technology provider to the oil and chemical industries.

To further reduce carbon intensity, the Aemetis Carbon Zero production process includes injecting CO2 from the production plant into a sequestration well at the Riverbank plant site to permanently capture an estimated 200,000 metric tonnes per year of CO2.

About Aemetis

Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today’s infrastructure. 

Aemetis Carbon Zero products include zero carbon fuels that can “drop in” to be used in airplane, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle. 

Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe.  Aemetis is developing the Carbon Zero sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.

Safe Harbor Statement 

This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the development and construction of the carbon sequestration facilities, biogas lagoon digesters, biogas cleanup and compression unit, construction and operation of the biogas pipeline, our compliance with governmental programs, the consummation of the new debt financing on the terms and conditions set forth herein, our ability to obtain additional funding for our projects, and our ability to access markets and funding to execute our business plan.  Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties.  Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

External Investor Relations

Contact:

Kirin Smith

PCG Advisory Group

(646) 863-6519

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Company Investor Relations/

Media Contact:

Todd Waltz

(408) 213-0940

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