Aemetis discusses cellulosic ethanol plans during investor call

By Erin Voegele | August 11, 2017

Aemetis Inc. has released second quarter financial results, providing an update on its efforts to acquire Edeniq and discussing plans to construct a 10 MMgy cellulosic ethanol plant near its existing corn ethanol facility in Keyes, California.

“We have recently achieved significant milestones in our ethanol and biodiesel operating segments,” said Eric McAfee, chairman and CEO of Aemetis. “Accomplishments during the second quarter include implementation of our strategy to grow the India biodiesel business through the BP Singapore supply agreement, sales to bulk fuel customers, newly approved sales to retail customers and winning supply agreements with the India Oil Marketing Companies. During the third quarter, we also started production of cellulosic ethanol from orchard wood and nutshells at our newly constructed integrated demonstration unit at the InEnTec Technology Center in Richland, Washington. Cellulosic ethanol can reduce greenhouse gas emission up to 80 percent when compared to gasoline. In India, we completed the construction of the first phase of our commercial pretreatment unit and began production of biodiesel using our patent-pending enzymatic technology.”

During an investor call, McAfee noted yield and data generated at the integrated demonstration unit will be provided to the USDA as part of the company’s effort to complete the second phase of the loan guarantee application process under the 9003 Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program.

McAfee also briefly discussed the status of the pending Edeniq acquisition, noting Aemetis is pleased with the process of the ligation related to the agreement. He said the company believes documents disclosed during the discovery process support Aemetis’ demand to complete the transaction on the terms set forth in the signed acquisition agreement.

In addition, McAfee provided an update Aemetis’ use of the EB-5 financing program, with benefits the U.S. economy and creates jobs by attracting investment from qualified foreign investors who are granted a path to U.S. citizenship through an investment of $500,000 in a qualified project. According to McAfee, financing raised under the program will be used, in part, to fund construction of a 10 MMgy cellulosic ethanol plant near its Keyes facility.  

Aemetis reported second quarter revenues of $40.76 million, up from $33.06 million during the same period of last year. Gross profit was $1.71 million, compared to $1.94 million during the second quarter of 2016. Net loss was $5.99 million, compared to a net loss of $4.98 reported for the second quarter of last year.