Aemetis closes $100M credit facilities for carbon reduction projects and working capital funding

In California, Aemetis, Inc. closed two new, lower interest rate credit facilities with aggregate availability of up to $100 million, comprised of up to $50 million for projects that produce lower carbon intensity renewable products and up to $50 million for working capital. In connection with the closing of the new credit facilities, Aemetis repaid $16 million of higher interest rate debt, building upon the more than $60 million of higher interest rate debt repaid during 2021.

The base interest rates under the new credit facilities are 8% for capital projects and 10% for working capital financing and were provided by Third Eye Capital of Toronto, Canada, which has funded Aemetis as a senior lender since 2008.  The credit facilities are expected to provide funding for the Aemetis projects that reduce the carbon intensity of renewable fuels, including a zero carbon intensity solar array and extensive process equipment electrification upgrades to the Keyes ethanol plant, a sustainable aviation fuel (SAF) and renewable diesel plant, and carbon sequestration facilities.

The new debt facilities are expected to provide the remaining funding required for engineering and permitting of the Carbon Zero renewable jet and diesel plant in Riverbank, California from Aemetis prior to completion of project debt financing.  Aemetis has invested more than $32 million of cash and grants in the renewable jet and diesel plant.

In addition to a $3.2 billion, 10-year renewable diesel supply agreement with a leading travel stop company, Aemetis has signed $2.5 billion of sustainable aviation fuel supply agreements with Delta Air Lines, American Airlines and Japan Airlines to supply a 40% blend of SAF and 60% petroleum jet fuel to San Francisco Airport.  An additional $1 billion of Memorandum of Understandings have been signed with other members of the oneworld Alliance, which are expected to be converted to signed agreements by the end of Q2 2022.