Aemetis Inks 250M Gallon SAF Offtake Deal With Delta

OAKHURST, N.J. (DTN) --- Aemetis, Inc., recently announced the signing of an offtake agreement with Delta Air Lines 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 Low Carbon Fuel Standard, Renewable Fuel Standard and 45Q tax credits.

The SAF 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 SAF is expected to be available for use by Delta starting in 2024.

Delta's agreement with Aemetis builds on its 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 SAF by the end of 2030 and committing to set science-based targets aligned with the Paris Agreement.

"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.

Powered by 100% renewable electricity, the Aemetis Carbon Zero plant design utilizes cellulosic hydrogen made from carbon negative waste wood. The below zero caron intensity, cellulosic hydrogen then is used to hydrotreat vegetable or other renewable oils to produce aviation and diesel 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 tons per year of CO2.