Cellulosic Ethanol and Enzymatic Biodiesel Biofuels Plant Upgrades

Transcription

1 Renewable Energy Worldwide Cellulosic Ethanol and Enzymatic Biodiesel Biofuels Plant Upgrades Eric McAfee Chairman/CEO October 17, 2017 ABLC San Francisco

2 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.

3 3 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 from $100 to $25 per barrel High cost of pilot and greenfield production plants to commercialize new technologies

4 Low Carbon Fuel Standard Biofuels Lead Carbon Reduction in California Source: Renewable Fuels Association, April 22, 2016

5 Cellulosic Waiver Credit (CWC) Attracts Cellulosic Biofuels Investment $6.00 Total Biofuel Values $USD/Gallon of Biofuel $5.00 $4.00 $3.00 $2.00 $1.00 $- LCFS ($/CI) Tax Credits RIN Base Fuel Price Any other BD. Corn Oil BD Tallow BD UCO BD BioD Market Midwest Ethanol Aemetis Ethanol Milo Milo + Biogas Cellulosic EtOh Market Price Type of Biofuel

6 Value of Cellulosic vs. Traditional Ethanol $6.00 Ethanol Prices $5.00 $USD/Gallon of Ethanol $4.00 $3.00 $2.00 Tax Credits LCFS ($/CI) RIN Base Fuel Price $1.00 $- Cellulosic EtOh Aemetis California Ethanol Midwest/Chicago Ethanol Ethanol Production Types

7 Enzymatic Biodiesel: India Plant

8 Enzymatic Plant Expansion Process Patent BP Contract Filing 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

9 Ramp Plant up Expansion Supply Contract BP Contract with BP 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 Q 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

10 Cellulosic Ethanol: Keyes Plant

11 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

12 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

13 Aemetis Integrated Demonstration Unit Operational July 2017 Walnut Wood Gasification Fermentation Pistachio Shell Almond Wood Walnut Shell Demo plant actual yields exceed planned commercial yields for USDA

14 14 Feedstocks for Ethanol: Lanzatech Fermentation Industrial Waste Gas Steel, PVC, Ferroalloys Biogas LFG, Methane Solid Waste Industrial, MSW, DSW Biomass CO 2 Reforming Gasification Renewable H 2 Renewable Electricity CO CO + H 2 CO + H 2 + CO 2 CO 2 + H 2 CO 2 + H 2 O + e - Gas Fermentation Available High Volume/Low Intrinsic Value Most Point Sourced Non-Food

15 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

16 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

17 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 toplant 55 year lease with additional space for expansion

18 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 Construction $125m USDA 2019 LanzaTech 10mg Production $25m Cash flow 2020 LanzaTech 20mg Production $50m Cash flow 2018 Enzymatic 40mg Produced $10m Cashflow 2019 Enzymatic 80mg Produced $20m Cash flow 2020 Enzymatic 100mg Produced $25m Cash flow

19 Eric A. McAfee Chairman/CEO Civic Center Towers Stevens Creek Blvd., 7th Floor Cupertino, California