The Aemetis Biorefinery Advanced Renewable Fuels and Chemicals Produced by Conversion of Existing Biofuels Facilities March 2014
Disclaimer Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words “ may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue ” and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those projected in such statements due to, without limitation: (i) general economic conditions, (ii) ethanol and gasoline prices, (iii) commodity prices, (iv) distillery grain soluble markets, (v) persistency levels, (vi) transportation rates for rail/trucks, (vii) interest rate levels, (viii) ethanol imports, (ix) changing levels of competition, (x) changes in laws and regulations, including govt. support/incentives for biofuels, (xi) changes in process technologies, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures and (xiv) general competitive factors on a local, regional, national and/or global basis, (xv) natural gas and steam prices, and (xvi) chemicals and enzyme prices. The matters discussed herein may also involve risks and uncertainties described from time to time in the company’s annual reports and/or auditors’ financial statements. The company assumes no obligation to update any forward-looking information contained herein, and assumes no liability for the accuracy of any of the information presented herein as of a future date.
Agenda Introduction Background Recent / Future Developments Team Value Proposition
Key Highlights: Aemetis, Inc. • Founded in 2006 with headquarters in Cupertino, California • Largest biofuels producer in California; Largest US biofuels producer in Asia • Owns/Operates 115 mgy renewable fuels and chemicals plants in US and India o Acquired Cilion, Inc. 60 mgy ethanol plant in Keyes, CA (2012) (build cost $145M) o Built 50 mgy advanced biofuel plant in Kakinada, India (2008) (build cost $22M) • First upgraded corn ethanol facility approved by the EPA to produce D5 Advanced Biofuels using the milo/biogas/CHP pathway • Acquired Zymetis, a renewable fuels/chemicals biotechnology company, in 2011 o 5 granted patents on enzyme and microbe technology for biofuels/chemicals production o Operates biotechnology research and development laboratory at Maryland Biotech Center • Strong positive cash flow in the higher-margin California biofuels market • 125 employees worldwide • Key Customers: 2
Key Company Milestones Timeline February 2007 US: Acquired Energy Enzymes - former Department of Energy funded enzyme technology for enzyme production and integration November 2008 India: Built and commissioned 50 MGY advanced biofuels plant in Kakinada, India Mid-2009 India: Obtained permits to sell biofuels into Europe, U.S. and Indian domestic market April 2011 US: Retrofitted and restarted operations of 60 MGY ethanol plant in Keyes, California owned by Cilion, Inc. July 2011 US: Acquired Zymetis, Inc., a novel biorefining technology company, for its patent portfolio and production process January 2012 India: Completed construction of glycerin refining unit and obtained permits to sell into domestic food and pharmaceutical markets in India April 2012 India: Glycerin refining and oil pretreatment units commissioned at India plant July 2012 US: Acquired 60 MGY Keyes ethanol plant through acquisition of Cilion, Inc. June 2013 US: Achieved high-volume production of advanced biofuels using milo feedstock and a Combined Heat & Power (CHP) system in an integrated process with traditional feedstock by upgrading the Keyes plant August 2013 US: Received EPA approval as the first converted corn ethanol plant to produce D5 Advanced Biofuels using milo, biogas and a Combined Heat & Power system January 2014 India: Completed construction of distillation unit creating the only distilled biodiesel plant in India, providing biofuel qualified for EU and US delivery
Biofuels Industry - Ethanol • Large Gasoline Market: 130 billion gallon gasoline market per year in US • Ethanol Market : 14 billion gallons per year in US generates $40 billion revenues • Capacity : 210 plants cost about $28 billion to construct • Lowers Cost of Gasoline by up to $1.09 per Gallon : Replaces 10% of gasoline in US, lowering cost at pump by replacing crude oil demand with renewable fuel • Provides 115 Octane o More power – allows use of lower quality, lower cost crude oil to make gasoline • Contains 30% Oxygen o Cleaner burning gasoline – required by federal air quality laws • Not Subsidized o Federal blender tax credit ended Dec 2011 o Biofuels do not receive tax-free Master Limited Partnership (MLP) status o No military costs required for protection of foreign oil fields or shipping lanes 3
Biofuels Industry - Biodiesel • Large Diesel Market : 50 billion gallon per year diesel market in US • Biodiesel Capacity : About 2 billion gallons per year of US biodiesel production capacity generates about $8 billion of annual revenues • High Cost of Vegetable Oil Feedstock • Soy oil process (majority of feedstock used) = Costs about $4 per gallon • Biodiesel sales price above $4 per gallon due to high cost feedstocks • Provides Lubricity for Ultra Low Sulfur Diesel (ULSD) o More lubrication for engine o Allows use of diesel with lower sulfur content and lower emissions • Not Subsidized o Federal $1 per gallon biodiesel blender tax credit ended Dec 2013 o Biofuels do not receive tax-free Master Limited Partnership (MLP) status o No military costs required for protection of foreign oil fields or shipping lanes for biodiesel feedstock or delivery 4
Agenda Introduction Background Recent / Future Developments Team Value Proposition
Facility Overview 60 mgy Ethanol Plant - Modesto, CA • Original Build Cost $132 million in 2008 Also $15 million (cost ) for extra equipment o • Aemetis acquired 100% in July 2012 $15 million cash o 11% of Aemetis common stock o • Operating at 120% of nameplate capacity 420,000 tons of animal feed per year • 50 mgy Biodiesel Plant - Kakinada, India • Original Build Cost $22 million in 2008 Built by Aemetis • Non-food feedstock • Byproduct of edible palm oil o • Refined glycerin for pharma and industrial customers Only large distilled biodiesel producer in India • 6
California 60 MGY Ethanol & DDG Plant
India 50 MGY Biodiesel & Glycerin Plant India Plant Pictures
Plant Upgrade Strategy • Aemetis upgrades ethanol and biodiesel plants with advanced technology, feedstocks and new processes to produce advanced biofuels products o Demonstrate upgrades at Aemetis plants, then acquire or joint venture with existing biofuels facilities to deploy technology • Aemetis already built and operates advanced biofuels plants in India and US o Non-food feedstocks o Waste stearine producing biodiesel; Grain sorghum producing advanced ethanol o Geographic and feedstock diversity o Global customer base in Europe, US and Asia 7
Upgrade Gen 1 to Advanced Biofuels • Larger Markets: o Advanced Ethanol = 16 billion gallon market by 2022 = $50 billion, larger market than Gen1 o Advanced Biodiesel from cellulose/other sugars = 10 billion gallons = $40 billion new market • Lower Capital Costs: o Acquire plants or JV with existing Gen 1 biofuels facilities at significant discount o Leverage Gen 1 capital equipment, permits, operating personnel, vendors • Lower Operating Costs: o Non-food ag waste and low-cost sugar feedstocks do not compete with food supply o Feedstock geographic diversity o Sequester carbon in byproducts = reduce greenhouse gases = high value byproducts • Higher Margins: o Gen 2 Feedstocks – Agricultural waste and low-cost sugars with limited alternative markets o Gen 2 Biofuels/Biochemicals - Higher product value and carbon sequestration value 8
Improved Profitability Aemetis Technology Projected to Significantly Increase Profitability Existing Biofuels Plants D4 Advanced BioDiesel (Cellulose/Sugar) D5 Advanced Ethanol (Milo) D6 Traditional Ethanol (Corn) G2 G1 $0.50 per Gallon $0.70 per Gallon $1.50+ per Gallon D5 Advanced Biofuels using Milo, Sustainable High Margins Biogas and Combined Heat & Power Due to Patented Technology 9
Lower Carbon Fuels Aemetis Technology Projected to Significantly Reduce Carbon Content of Biofuels Traditional Ethanol - Corn Advanced Biofuel - Milo G1 Advanced Biofuel – AgWaste/Sugars G2 80 Carbon Units 46 Carbon Units <30 Carbon Units 17% reduction in Carbon Intensity vs. Gasoline 52% reduction in GHG emissions 70% or more reduction in GHG emissions Gasoline = 96 Carbon Units 10
Agenda Introduction Background Recent / Future Developments Team Value Proposition
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