Aemetis signs $1B offtake agreement with Delta Air Lines for 250M gallons of sustainable aviation fuel
Aemetis, a renewable fuels company focused on negative-carbon-intensity products, signed an offtake agreement with Delta Air Lines for 250 million gallons of blended fuel containing sustainable aviation fuel (SAF) to be delivered over the 10-year term of the agreement. The aggregate value of the agreement is estimated to be more than $1 billion, including LCFS, RFS, 45Q and tax credits.
Sustainable aviation fuel provides significant environmental benefits compared to petroleum jet fuel, including a lower lifecycle carbon footprint. Delta’s agreement with Aemetis builds on Delta’s current effort for a future of net zero aviation, which includes committing to airline carbon-neutrality from March 2020 onward; aspiring to replace 10% of its conventional jet fuel consumption with sustainable aviation fuel (SAF) by the end of 2030; and committing to set targets aligned with the Paris Agreement.
The sustainable aviation fuel is expected to be produced by the Aemetis renewable jet/diesel plant under development on a 125-acre former US Army Ammunition production plant site in Riverbank, California. (Earlier post.) The blended sustainable aviation fuel is expected to be available for use by Delta starting in 2024.
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 by utilizing cellulosic hydrogen from waste forest and orchard wood along with onsite CO2 carbon sequestration capacity.—Eric McAfee, Chairman and CEO of Aemetis
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.
Earlier this year, Aemetis selected Axens Vegan Renewable Hydroprocessing technology for the “Carbon Zero 1” production plant in Riverbank. Axens Vegan technology is designed to hydrotreat a wide range of lipids and to produce a flexible slate of low-density and high cetane renewable diesel as well as renewable jet fuel.
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.