Aemetis, Delta in billion dollar breakthrough: 250 million gallon, 10 year SAF deal signed
Breaking news from California. Aemetis and Delta announced an offtake agreement for 250 million gallons of blended fuel containing sustainable aviation fuel 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 percent of its conventional jet fuel consumption with sustainable aviation fuel (SAF) by the end of 2030 and committing to set science-based 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 U.S. Army Ammunition production plant site in Riverbank, California. The blended sustainable aviation fuel is expected to be available for use by Delta starting in 2024. According to sources, the blend is expected to be 40 percent SAF and 60 percent conventional fuel, and there’s an expected value of $4.10 per gallon. Delta will acquire all CORSIA credits, and the remaining credits will be retained by Aemetis as the fuel blender.
About the Carbon Zero technology
The Aemetis Carbon Zero plant design utilizes cellulosic hydrogen made from carbon negative waste wood, and is powered by 100% renewable electricity, resulting actually in below zero carbon intensity, is the word from sources. Cellulosic hydrogen is used to hydrotreat vegetable or other renewable oils to produce aviation and diesel fuel. The process technology is licensed from Axens.
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.
Reaction from the stakeholders
“When Delta committed to being carbon neutral, we also committed to continued investment and collaboration with others in the industry,” said Amelia DeLuca, Delta’s managing director of sustainability. “This supply agreement is an important step toward the expansion of SAF, which is not only important in helping us achieve our net-zero aviation goals, but also in supporting our customers to achieve their own sustainability goals.”
“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,” said Eric McAfee, Chairman and CEO of Aemetis.
The Aemetis backstory
RNG and Renewable Fuels: The Digest’s 2021 Multi-Slide Guide to Aemetis
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 operates a 50 million gallon advanced biodiesel plant in India.
Aemetis Biogas signs interconnection agreement with PG&D
Aemetis receives final permit to build next 21 miles of Phase 2 biogas pipeline
Aemetis CCS study shows its two projects could sequester 2M tons of CO2 annually
Aemetis signs $200M biofuel offtake agreement with Murex
Axens licenses its Vegan technology to Aemetis for Carbon Zero 1 project
The Delta Backstory
Delta commits $1B to become world’s 1st carbon neutral airline
Chevron, Delta Air Lines and Google team on SAF emissions data tracking
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