Aemetis signs agreement with American Airlines to supply SAF

By Aemetis Inc. | December 02, 2021

Aemetis Inc., a renewable fuels company focused on negative carbon intensity products, announced Dec. 1 that an offtake agreement has been signed with American Airlines for 280 million gallons of blended fuel containing sustainable aviation fuel (SAF) to be delivered over the 7 year term of the agreement. The aggregate value of the agreement is estimated to be more than $1.1 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. The blended Sustainable Aviation Fuel to be delivered under this agreement is 40 percent SAF and 60 percent Petroleum Jet A to meet international blending standards.

American’s agreement with Aemetis builds on the airline’s efforts to reach net zero carbon emissions by 2050. The airline has also committed to set a science-based target for the year 2035 and has aligned with the aviation industry goal of replacing 10 percent of conventional jet fuel with sustainable aviation fuel by 2030.

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 American starting in 2024.

“The American Airlines team is committed to reducing emissions from our operations, and sustainable aviation fuel is the cornerstone of our strategy in this decade,” said Doug Parker, chairman and CEO of American Airlines. “We’re proud to join with our oneworld partners in supporting the growth of SAF through this agreement with Aemetis, and we’re eager to continue collaborating with like-minded partners to meet aviation’s climate challenge.”

“American Airlines is demonstrating its leadership in the reduction of carbon emissions and improving air quality by using Aemetis Carbon Zero sustainable aviation fuel,” said Eric McAfee, the founder, chairman and CEO of Aemetis. “The Aemetis Carbon Zero plant under development at the former Army Ammunitions Plant in Riverbank, California is designed to utilize zero carbon electricity, carbon negative hydrogen from waste wood, and renewable oils along with CO2 sequestration to produce low carbon sustainable aviation fuel.”

Powered by 100 percent renewable electricity, the Aemetis Carbon Zero plant design utilizes cellulosic hydrogen made from carbon negative waste wood. The below zero carbon intensity, cellulosic hydrogen then is used to hydrotreat vegetable or other renewable oils to produce aviation and diesel fuel.  The process technology is licensed from Axens (France), a global technology provider to the oil and chemical industries.

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.