Aemetis Inc (NASDAQ: AMTX) is likely to have an overwhelmingly strong day in the market today, and for good reason. The company issued a press release this morning announcing that it has successfully built and operated an integrated demonstration unit for more than 120 days of continuous operation. Today, we’ll talk about the news and what we’ll be watching for with regard to AMTX ahead.
AMTX Announces Completion Of Demonstration Unit
As mentioned above, Aemetis is likely to have an incredibly strong day in the market today after announcing that the company has successfully built and operated an integrated demonstration unit for more than 120 days of continuous operation. In the release, the company said that the demonstration unit ran with 94% uptime. This uptime meets the requirements of the federal USDA 9003 Biorefinery Assistance Program guaranteed loan.
In the release, AMTX said that with the help of partnerships from its key providers, InEnTec and LanzaTech, the company has optimized the integration of an advanced arc furnace and gas fermentation technologies to convert waste biomass into low carbon, renewable cellulosic ethanol and fish meal.
This is incredible news. After all, AMTX has a 20-year feedstock supply agreement and a 55-year lease already signed for the Riverbank plant. In fact, it is expected that the plant that will begin operations in 2019 and will produce around 12 million gallons per year. In a statement, Eric McAfee, Chairman and CEO at Aemetis, had the following to offer:
The completion of the successful operation of the demonstrated unit is the final technology step in securing a USDA loan guarantee for the $158 million cellulosic ethanol plant Aemetis is building in Riverbank, California… We believe that the integration of these technologies, and the high yields generated by the unit, demonstrate that Aemetis can successfully produce high value cellulosic ethanol from the 1.6 million tons of waste orchard wood and other renewable feedstocks in the Central Valley. With plans to expand the Riverbank plant and construct additional plants, Aemetis plans to be a leader in supplying California’s low carbon fuels mandates.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMTX. In particular, we’re interested in following the company’s work surrounding the Riverbank, California production facility and excited to learn more about the company’s efforts to secure the USDA loan to get the plant up and running. Not to mention, CNA Finance Chief Strategic Analyst, Kenny Soulstring, is in the process of putting together a detailed report on the company. So, stay tuned, as that will be coming soon. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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