Renewable Energy Worldwide Cellulosic Ethanol and Enzymatic Biodiesel Biofuels Plant Upgrades Eric McAfee – Chairman/CEO October 17, 2017 ABLC San Francisco
Mission: Aemetis means “One Prudent Wisdom” One prudent wisdom is the development of renewable fuels and biochemicals to replace petroleum. Strategy: Aemetis develops and commercializes technologies for advanced biofuels and biochemicals by upgrading existing biorefineries.
Biofuels Market Demand is Mandated In order to meet the federal Renewable Fuel Standard, obligated parties are required to blend advanced biofuels in increasing quantities each year Funding of advanced biofuels has been delayed due to: • 2008 recession and fall of crude oil from $147 to $32 per barrel • Two years of non-enforcement of the RFS during 2014/2015 • Rapidly falling crude oil prices 2014-2016 from $100 to $25 per barrel • High cost of pilot and greenfield production plants to commercialize new technologies 3
Low Carbon Fuel Standard – Biofuels Lead Carbon Reduction in California Source: Renewable Fuels Association, April 22, 2016
Cellulosic Waiver Credit (CWC) Attracts Cellulosic Biofuels Investment Total Biofuel Values $6.00 $5.00 $USD/Gallon of Biofuel $4.00 $3.00 LCFS ($/CI) $2.00 Tax Credits $1.00 RIN Base Fuel Price $- Market Price Cellulosic EtOh Milo + Biogas Milo Aemetis Ethanol Midwest Ethanol BioD Market UCO BD Tallow BD Corn Oil BD Any other BD. Type of Biofuel
Value of Cellulosic vs. Traditional Ethanol Ethanol Prices $6.00 $5.00 $4.00 $USD/Gallon of Ethanol Tax Credits $3.00 LCFS ($/CI) RIN Base Fuel Price $2.00 $1.00 $- Cellulosic EtOh Aemetis California Ethanol Midwest/Chicago Ethanol Ethanol Production Types
Enzymatic Biodiesel: India Plant
Enzymatic Process Patent Filing Plant Expansion – BP Contract • Aemetis built, owns and operates 50 mgy capacity distilled biodiesel plant in Kakinada, India • Developed advanced enzymatic biodiesel process - filed patent April 2017 • Technology includes pretreatment process, chemicals, temperatures, separation unit design and residence times • Convert high Free Fatty Acid (FFA) feedstocks with high yield • Use Novozymes enzymes as process catalyst
Ramp up Supply Contract with BP Plant Expansion – BP Contract • Signed three year biodiesel supply contract with BP Singapore in May 2017 for EU and US exports from India • BP delivered 1,000MT of low cost, high FFA feedstock to India • Commercial production feedstock completed Sept 2017 using BP feedstock • BP approval of finished biodiesel product expected Nov 2017 • BP plans to supply 8,000-10,000 MT per month feedstock for biodiesel (about $100 million per year revenues) • Commercial shipments to BP expected to begin Q4 2017 of 5,000 MT per month (about $4 million per month revenues) • BP agreement provides Aemetis positive cash flow per MT regardless of feedstock cost
Cellulosic Ethanol: Keyes Plant
LanzaTech Syngas to Ethanol ▪ Aemetis holds California feedstock exclusive license for LanzaTech technology ▪ Aemetis is building an initial 10 million gallon/year facility in California ▪ Aemetis is utilizing existing 60 million gallon/year ethanol infrastructure to lower CAPEX and speed deployment
LanzaTech Scale-Up Success • Building commercial scale plants in Asia and Europe using steel mill gas feedstock • Aemetis is first plant using renewable feedstock to produce cellulosic ethanol
Aemetis Integrated Demonstration Unit Operational July 2017 Walnut Wood Gasification Fermentation Pistachio Shell Almond Wood Demo plant actual yields exceed planned commercial yields for USDA Walnut Shell
Feedstocks for Ethanol: Lanzatech Fermentation Industrial Solid Waste Biomass CO 2 Biogas Waste Gas LFG, Methane Steel, PVC, Ferroalloys Industrial, MSW, DSW Renewable Gasification Renewable H 2 Reforming Electricity CO 2 + H 2 CO 2 + H 2 O + e - CO + H 2 + CO 2 CO CO + H 2 Gas Fermentation ✓ Most Point Sourced ✓ High Volume/Low Intrinsic Value ✓ Available ✓ Non-Food 14
Feedstock Diversity for Cellulosic Ethanol Waste Feedstocks for Aemetis Plant • Almond/Walnut Orchard Waste • Pistachio/Almond/Walnut Shells • Orchard Pruning and Trimmings • Vineyard Waste • Rice Hulls • Cow manure from dairies/feedlots • Construction/Demolition Lumber • Paper and Cardboard • Forest Waste • Food Waste • MSW • Medical Waste • Hazardous Waste
Feedstock Near Keyes Plant Aemetis will use local cellulosic waste feedstocks for cellulosic ethanol - about 1 million acres almond/walnut orchards in Central California DOE estimates 1 billion tons of cellulosic waste per year in US Aemetis California Plant Other Ethanol Plants
Riverbank, California: Optimal Site Location for Cellulosic Ethanol • Former Army Ammunition Production Plant recently converted to industrial use • Existing power and building infrastructure • Feedstock storage areas adjacent to plant • 55 year lease with additional space for expansion
Strategic Deployment of Aemetis Technologies in Owned Plants • Ethanol Industry: Upgrade Keyes plant with LanzaTech to produce about 10 MGPY of cellulosic ethanol, targeting expansion to 40 MGPY at Keyes • Expand to four plants in the Central Valley to produce 160 mgy primarily from almond orchard waste wood and nutshells • Revenues $5 per gallon ($800m) and cash flow $2 per gallon ($320m) • Biodiesel Industry: Upgrade Kakinada plant with enzymatic process to convert low cost feedstocks into EU and US quality biodiesel • Revenues $3 per gallon and cash flow $0.25+ cents/gallon on low capex 2018 Lanzatech 2020 LanzaTech 2019 LanzaTech Construction 20mg Production 10mg Production $125m USDA $50m Cash flow $25m Cash flow 2018 Enzymatic 2020 Enzymatic 2019 Enzymatic 40mg Produced 100mg Produced 80mg Produced $10m Cashflow $25m Cash flow $20m Cash flow
Eric A. McAfee Chairman/CEO eric.mcafee@aemetis.com Civic Center Towers 20400 Stevens Creek Blvd., 7th Floor Cupertino, California
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