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Aemetis Inc. EB5 Project

Aemetis Inc. Biorefinery EB5 Project for Investors...

Renewable Energy has been in the limelight ever since the prices of Crude Petroleum Oil increases to the unprecedented height per barrel. This is due to the diminishing oil reserves in the world and political instabilities in some oil-exporting countries. The ever increasing concerns over fluctuating price of oil & the possible future supply constrains have reinforced the need for alternative fuel resources.

Advantages of the Renewable Energy compared to Fossil Fuels are enormous in terms of Environment & availability. Biofuels like Bioethanol & Biodiesel are currently being produced from Agricultural Products such as Sugarcane, Corn & Rapeseed Oil respectively.

Biofuels Overview:

Biofuels are of rapidly growing interest for reason of Energy Security, Diversity & Sustainability- as well as for Greenhouse Gas Mitigation. In recent years, the U.S. has enacted regulations and adopted aggressive goals to encourage increased usage of Biofuels. Individual States (especially California) have taken even stronger position with respect to Biofuels. Today’s R&D focus is on 2nd Generation Biofuels that are produced from a variety of Biomass Feedstocks utilizing wide range of conversion technologies. Considerable R&D, Policy and Regulatory efforts are also focused on Energy & Environmental consequences of Biofuels which includes not only direct emissions associated with vehicular uses, but also the fuels life-cycle impacts with respect to total Energy Usage, Greenhouse Gas Emissions and Multi-Media Effects.

Collectively, these Biofuels from Food Sources are known as 1st Generation Biofuels. Although 1st Generation Biofuels have the potential to replace Fossil Fuels as the main source of Energy supply, its production is surrounded by certain issues like Tropical Forests destruction. Instead 2nd Generation BioEthanol, which utilizes Non-Edible sources such as Lignocelluloses Biomass to produce Ethanol, has been shown to be more suitable as the source of Renewable Energy.

1st Generation Biofuels, mainly from corn & other Food based Crops are being used as a direct substitute for Fossil Fuels in Transport. However they are available in limited volumes that do not make them serious replacements for Petroleum. The recently identified limitation of 1st Generation Biofuels produced from Food Crops have caused greater emphasis to be placed on 2nd Generation Biofuels produced from Lingo-Cellulosic Feed Stocks.

biofuel-importance-global-demand-for-energy

Biofuel Importance:

Biofuels are of rapidly growing interest for reason of Energy Security, Diversity & Sustainability- as well as for Greenhouse Gas Mitigation.

2nd Generation Biofuels from Forest and Crop Residues, Energy Corps and Municipal & Construction Waste, will arguably reduce net Carbon Emission, increase Energy Efficiency and reduce Energy dependency, potentially overcoming the limitations of 1st Generation Biofuels. Nevertheless, implementation of 2nd Generation Biofuels Technology will require a sustainable management of Energy, or development of Local Bioenergy Systems.

The Biofuel Industry will grow at a steady rate and encompass both 1st & 2nd Generation Technologies that meet agreed Environmental, Sustainability & Economic Policy Goal.

Sustainable Economic & Industrial growth requires Safe, Sustainable resources of Energy. For the future re-arrangement of a sustainable Economy to Biological Raw Materials, completely new approaches in the Research & Development, Production and Economy are necessary. The 1st Generation Biofuels appears unsustainable because of the potential stress that their production places on Food Commodities. For Organic Chemicals and materials these needs to follow a Biorefinery model under Environmentally Sustainable Conditions.

2nd Generation Biorefineries need to be build on the need for Sustainable Chemical Products through Modern & Proven Green Chemical Technologies such as Bioprocessing including Pyrolysis, Fisher Tropsch, and other Catalytic processes in order to make more complex molecules & material on which a future sustainable society will be based. This review focus on cost effective Technologies and the Processes to convert Biomass into useful Liquid Biofuels and Bioproducts, with particular focus in some Biorefinery concept based on different Feedstocks aiming at the integral utilization of these Feedstocks for the Production of Value added Chemicals.

Biofuel Market Demand in United States:

In the United States, Ethanol is primarily used as a Clean Air Additive, an Octane Enhancer and a Renewable Fuel Extender. Ethanol is blended with Gasoline (i) as an Oxygenate to help meet Fuel Emission Standards, (ii) To improve Gasoline performance by increasing Octane Levels and (iii) to Extended Fuel Supplies. A small but growing amount of Ethanol is also sold as E85, a Renewable Fuels-driven blend comprised of up to 85% Ethanol, with the remainder being Gasoline.

Fuel Ethanol Industry in the United States has experienced Rapid Growth over past decade, increasing from 1.4 Billion Gallons produced in 1998 to approximately 14.8 Billion Gallons produced in 2015.

In 2016, about 15 Billion Gallons per Year of Ethanol is being produced an approximately 210 Ethanol Plants in the U.S. out of which more than 800 Million Gallons per Year Ethanol is exported from United States to China and other countries in Asia, The Middle East and Europe.

Cellulosic Ethanol is made from Non-Corn Feedstocks such as Forest Waste, Orchard Wood Waste, Nutshells, Corn Stalks, Corn Cobs, and Corn Kernel Fiber. The Low Carbon content of Cellulosic Ethanol, and the potentially Lower Cost of Feedstocks and Fuel Production, has created significant Government Policy Support for expanded Cellulosic Ethanol Production.

Federal mandates for future Ethanol usage in the U.S. include the consumption of up to 16 Billion Gallons per Year of Cellulosic Ethanol by the year 2020, but Cellulosic Ethanol production capacity currently stands at only about 100 Million Gallons per Year which expected to give tremendous growth factor to Aemetis Inc. 2nd Generation Biorefineries.

To encourage additional investment in the production, a Large Premium is paid for Cellulosic Ethanol through Tax Credits, Carbon Credits and Federal Renewable Fuel Credits that generate up to $3 of additional revenue per Gallon compared to the Price of Corn Ethanol.

Factors driving increases in Ethanol Usage:

To encourage additional investment in the production, a Large Premium is paid for Cellulosic Ethanol through Tax Credits, Carbon Credits and Federal Renewable Fuel Credits that generate up to $3 of additional revenue per Gallon compared to the Price of Corn Ethanol.

Federal Renewable Fuel Standards (RFS): RFS mandate allows expanded investment in Advanced Biofuels, including Cellulosic Ethanol, with growth of Cellulosic Ethanol supported from 100 Million Gallons of 2016 capacity to 16 Billion Gallons of annual production capacity in 2022.

California Low Carbon Fuel Standard: Increases demand for Low Carbon Ethanol, Biodiesel and other Biofuels.

Federal Cellulosic Tax Credit: A 2nd Generation Biofuel Plant producing Cellulosic Ethanol is eligible for a Tax Incentive in the amount of up to $1.01 per Gallon of 2nd Generation Biofuel.

Emission Reduction: Ethanol is an Oxygenate which blended with Gasoline, reduce Vehicle Emissions. Ethanol’s high Oxygen content causes Gasoline to burn more completely and emitting fewer pollutants into the air which make Ethanol as Primary Clean Air Oxygenate in the U.S.

Octane Enhancement: Octane is a measure of the ability of a fuel to avoid loss of Power and Ethanol has Octane rating of 113 as compared to an average Gasoline Octane of 84 in the U.S.

Ethanol Market in California:

The state of California is located in the Western Pacific Region of the United States and comprises a total area of 158,706 Sq.mi bordered by state of Oregon to North, Nevada to East, and Arizona to the Southeast, as well as Baja California in Mexico to the South. California capital is Sacramento, with largest cities being Los Angeles, San Diego, San Jose and San Francisco.

California is made up of 58 counties and has population of approximately 39 million people by 2015.

California is the 8th Largest Economy in the World and 3rd largest consumer of Vehicle Fuels after China and about 13 Billion Gallons of Gasoline consumed each year in California.

There are only 4 operating Ethanol Plants in California, with combined nameplate capacity of about 167 Million Gallons per Year. None of the Plants located in California are producing Cellulosic Ethanol, but the Pacific Ethanol Plant in Stockton and Aemetis Plant in Keyes are in the process of installing advanced grinding equipments or receiving EPA approval for the production of about 1.5 Million Gallons per year of Cellulosic Ethanol at each Plant gives better Growth Avenue for future earnings.

As per Economic Analysis, the Fuel consumption in the Western States currently is 29.2 Billion Gallons per year, and Ethanol use in California is estimated at 1.5 Billion Gallons per Year.

aemetis-california-eb5-project-location

Biofuels:

California is 3rd Largest Consumer of Vehicle Fuels after China and about 13 Billion Gallons of Gasoline consumed each year in California.

Aemetis Inc. (NASDAQ: AMTX) Business Summary:

Aemetis, Inc. (NASDAQ: AMTX) is an International Renewable Fuels and Biochemicals Company. The company is focused on the production of Fuels and Chemicals through the Acquisition, Development and Commercialization of Technologies that replace traditional petroleum based products by conversion of 1st Generation Ethanol & Biodiesel Plants into Biorefineries. Its segments include North America & India. North America segment includes the company’s approximately 60 Million Gallon per Year capacity Ethanol Manufacturing Plant in Keyes, California and its Technology Lab in College Park, Maryland. The India segment includes the company’s over 50 Million Gallon per Year capacity Biodiesel Manufacturing Plant in Kakinada. The Keyes Plant produces Denatured Ethanol, Wet Distillers Grains, Corn oil & Condensed Distillers Solubles. It produces Biodiesel & Refined Glycerin at the Kakinada Plant in India.

Aemetis Inc focused on the Development and Commercialization of Innovative Technologies that produce Renewable Chemical & Fuel substitute for Traditional Petroleum-based Products. Aemetis Technology platform allows for the upgrade of existing Biorefineries, thereby substantially reducing Capital Expenditures, Construction Times and Startup Costs associated with Building Plants for processing Biomass into Renewable Chemicals & Fuels.

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Aemetis Inc. Project Innovation Technologies:

Aemetis Technologies holds Four Granted Patients and Ten pending Patients on production of Advanced Fuels and Chemicals.

*Edeniq Cellunator Process Technology:

Proper preparation of the Feedstock will require new processing equipment in order to be optimized for which patented and proven Edeniq Cellunator is to be installed as part of the project build-out. The Edeniq Cellunator will be used for maximizing the Liquefaction Process, improving Flow Characteristics and reducing Inefficiencies. The right sizing of the Particle Distribution allows more surface area for Enzymes to interact with, resulting in a greater Quality of Sugars that can be converted to Ethanol.

With over 30 Units operating across the United States and the Units have been seen Phenomenal Results, including over 99% Up Time.

*Lanza Tech Technology:

Aemetis has acquired the Exclusive Rights in California to Award Winning, Carbon Recycling Company Lanza Tech’s Patented Technology for the conversion of Agricultural Waste, Forest Waste, Dairy Waste and Construction & Demolition Waste (CDW). The Lanza Tech Gas-to-Ethanol Technology enables Aemetis to convert Local Biomass Wastes including Corn Stover, Forest, Dairy, Orchard, Vineyard, CDW, Hazardous Waste and other Biomass Waste Sources into Advanced Ethanol.

Aemetis Biorefineries EB-5 Projects in California:

PHASE 1: SOLD OUT...

The CEIC (California Energy Investment Center) a Regional Center (RC) is happy to report that AE Advanced Fuels, Inc. (“AEA”) EB5 Project is SOLD OUT. The AEA Project provides Immigration Investment Opportunity for Seventy-Two (72) EB5 Applicants ($36 Million in EB-5 capital). The AEA facility has been operating since April 24, 2011, and on July 10, 2012 AEA completed the Merger and Acquisition of the Facility.

Limited Partnership: Advanced BioEnergy, LP, a California Limited Partnership.

Project Company: AE Advanced Fuels, Inc. – Stanislaus County.

Total Project Cost : $168 Million.

70 EB-5 Investors - $500,000 TEA.

$35 Million – SOLD OUT.

I-526 Petitions Approved – 68.

Accepting Investor Applications

Aemetis Inc Ethanol Facility in Keyes, CA.

PHASE 2: Aemetis Inc ACCEPTING INVESTORS under EB5 Visa Program

EB5 Funds will be utilized by Aemetis Advanced Products Keyes, Inc. (“AAPK”) to upgrade Operations of a 60 Million Gallon-per-Year Ethanol Facility in Keyes, CA.

Limited Partnership: Advanced BioEnergy II, LP, a California Limited Partnership.

Project Company: Aemetis Advanced Products Keyes, Inc. – Stanislaus County.

Offering Size: The Partnership will invest up to $50 Million (up to 100 EB-5 Investors) into Promissory Notes of the Project Company.

Offering Price: Each $500,000 Note has a term of Five years.

Interest Rate & Distribution: The Investor (Limited Partner) will receive 0.25%. These Cash Distributions will be payable Quarterly for Each Year the Note is outstanding.

Maturity Date: Promissory Note – 5 Year Term Loan with Automatic Annual Extensions.

IMPLAN study suggests that total Investor Funds will be deployed to create more than 1900 Direct, Indirect and Induced Jobs.

Regional Center Administration Fee: $59,000

CEIC Regional Center for Aemetis Inc EB5 Project:

California Energy Investment Center (CEIC) was approved as an EB5 Regional Center by U.S. Citizenship & Immigration Service on August 11, 2009. Under the EB5 Visa Program the Investor qualifies for the lower Investment threshold of $ 500,000 because the CEIC designated area qualifies as a Targeted Employment Area (TEA).

CEIC’s Project companies are Owned & Operated by Public Companies, which allows Investors to track information about the Parent Company over the online search engines like Google.

CEIC operations are managed by Executive Director Mr. Michael Penbera.

Explore more on California Energy Investment Center (CEIC)...

Clear Exit Strategy:

The Project Company plans to use a combination of cash from operations and credit facilities to repay the promissory note.

The “Maturity Date” - Each Subordinated Note is due and payable on the Fifth (5th) year anniversary of the closing when funds are released to the Project.

The “Extended Maturity Date” Amendment to the Promissory Note provides that the Original Maturity Date shall be: – initially extended for two (2) years – then automatically each year thereafter, unless a 2-month notice of non-extension is provided in writing.

Our Team of Aemetis Inc & CEIC (Regional Center) is Ready to Help Indian Immigrant Investors to realize their Dream to Earn Greencard and Citizenship through our USCIS complaint Regional Center & EB5 Project!!!

For further assistance feel free to connect on [email protected]
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