Aemetis Inc's Business Segments

We own and operate a 60 million gallon per year ethanol production facility located in Keyes, California (the Keyes plant). The facility produces its own combined heat and power (CHP) through the use of a natural gas-powered steam turbine and reuses 100% of its process water with zero water discharge. In addition to ethanol, the Keyes plant produces Wet Distillers Grains (WDG), Distillers Corn Oil (DCO), and Condensed Distillers Solubles (CDS), all of which are sold to local dairies and feedlots as animal feed. The primary feedstock for the production of low carbon fuel ethanol at the Keyes facility is Number Two yellow dent corn. The corn is procured from various Midwestern grain facilities and shipped, via Union Pacific Rail Road, to an unloading facility adjacent to the plant.

North America

Leverage technology for the development and production of additional advanced biofuels and renewable chemicals. In March 2016, we acquired the exclusive rights to the LanzaTech Technology for the conversion of agricultural waste, forest waste, dairy waste, and construction and demolition waste to ultra-low carbon fuel ethanol in California. We intend to utilize this technology to produce advanced ethanol from local California biomass wastes. Utilizing a phased approach, we initially anticipate adopting the LanzaTech Technology at the Keyes Cellulosic Ethanol Facility, which will initially be an estimated eight million gallon per year name-plate capacity processing unit, and eventually expand to an estimated 32 million gallon per year name-plate production capacity plant. We also plan on licensing the LanzaTech Technology to other existing California-based ethanol plants. In addition, we continue to evaluate new technology and develop technology under our existing patents, patent pending and in-process research and development to produce renewable chemicals and advanced fuels from renewable feedstocks. Our objective is to continue to commercialize this technology and expand the production of advanced biofuel technologies and other bio-chemicals in the United States.

Diversify and expand revenue and cash flow by continuing to develop and adopt value-added by-product processing systems. During April 2012, we installed a DCO extraction unit at the Keyes plant and began extracting corn oil for sale into the livestock feed market beginning in May 2012. During 2014, we installed a second oil extraction system to further improve corn oil yields from this process. We continue to evaluate and, as allowed by available financing and incremental profitability, adopt additional value-added processes that increase the value of the ethanol, distillers grain, corn oil and CO2 produced at the Keyes plant, including adding liquefied CO2 processing capability. Advanced planning is underway to partner with a leading industrial gas supplier to build a liquid CO2 capture plant adjacent to the Keyes plant.

Acquire, license our technologies to, or Joint venture with other ethanol and biodiesel plants. There are approximately 200 ethanol plants and one hundred biodiesel plants in the U.S., as well as plants in Brazil, Argentina, India and elsewhere, that could be upgraded to expand revenues and improve cash flow using technology commercially deployed or licensed by us. After developing and commercially demonstrating technologies at the Keyes and/or Kakinada plants, we will evaluate on an opportunistic basis the benefit of acquiring ownership of a portion of or all of other biodiesel production facilities, or entering into joint-venture or licensing agreements with other ethanol, renewable diesel or renewable jet fuel facilities.

Evaluate and pursue technology acquisition opportunities. We intend to evaluate and pursue opportunities to acquire technologies and processes that result in accretive value opportunities as financial resources and business prospects make the acquisition of these technologies advisable. In addition, we may also seek to acquire companies, or enter into licensing agreements or form joint ventures with companies that offer prospects for the adoption of accretive technologies.

Acquire additional biofuels production facilities. On an opportunistic basis, we will evaluate the benefit of acquiring ownership of a portion of or all of other biodiesel production facilities, or entering into joint-venture or licensing agreements with other ethanol, renewable diesel or renewable jet fuel facilities.

India

Capitalize on recent policy changes by the Government of India, particularly those reducing the subsidies on diesel, reducing unfair taxation of feedstock, reducing restrictions on sales of fuel into the transportation markets, and promoting the use of renewable transportation fuels. We plan to continue to pursue the traditional bulk and transportation biodiesel markets in India, which may become more economically attractive as a result of potential changes to government tax structures (biodiesel is not subsidized in India) and policies. With the rationalization of indirect taxation by the introduction of Goods and Services Tax, business to government Oil Marketing Company contracts will open up. Additionally, with the European Union exempting Indian biodiesel from a 6.5% import duty starting January 1, 2017, we plan to pursue export sales and look to aggressively sell in the European Union.


Expand alternative market demand for biodiesel and its by-products. We plan to create additional demand for our biodiesel and its by-products by developing additional alternative markets. In 2011, we began selling biodiesel to textile manufacturers for use as an anti-static chemical. In the first quarter of 2012, we completed glycerin refining and oil pre-treatment units and began selling refined glycerin to manufacturers of paints and adhesives. In 2012, our India subsidiary received an Indian Pharmacopeia license, which enables the sale of refined glycerin to the Indian pharmaceutical industry.

Continue to develop international markets. We expect to increase sales by selling our biodiesel into international markets. During 2014, we completed the construction of a biodiesel distillation column, which allows us to produce a high-quality biodiesel product meeting European Union standards. We received the certifications necessary to meet the International Sustainability and Carbon Certification (ISCC) standard, allowing for further access to European markets for our biodiesel products. During 2015, we obtained the pathway certification permitting importation of biodiesel into California. In 2016, the European Commission adopted a list of new product categories originating in GSP (Generalized System of Preferences) beneficiary countries for which GSP tariff preferences will be suspended from January 1, 2017 until December 31, 2019. Our distilled biodiesel falls under the category giving us at least a 6.5% tariff suspension from January 1, 2017. We believe that this ruling will allow us to access the European markets for our high quality distilled biodiesel.

Diversify our feedstocks from India and international sources. We designed our Kakinada plant with the capability to produce biodiesel from multiple feedstocks. In 2009, we began to produce biodiesel from non-refined palm oil (NRPO). During 2014, we further diversified our feedstock with the introduction of animal oils and fats, which we used for the production of biodiesel to be sold into the European markets. The Kakinada plant is capable of producing biodiesel from used cooking oil (UCO), which can be supplied from China, the Middle East and other foreign markets, as well as domestic India suppliers.

Develop and commercially deploy technologies to produce high-margin products. The technology applicable to the Keyes plant for the upgrade of corn oil into valuable, high-margin products also applies to the Kakinada plant in India. By using the existing equipment, process controls, utilities and personnel at the Kakinada plant, we plan to produce high-value products more quickly and at a lower capital and operating cost than greenfield projects.

Evaluate and pursue technology acquisition opportunities. We intend to evaluate and pursue opportunities to acquire technologies and processes that result in accretive value opportunities as financial resources and business prospects make the acquisition of these technologies advisable. In addition, we may also seek to acquire companies, or enter into licensing agreements or form joint ventures with companies that offer prospects for the adoption of accretive technologies.