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Press Release

Aemetis Biogas and APG Demonstrate Low-Cost Conversion of Diesel Trucks to Utilize up to 65% Renewable Natural Gas

Published by Todd Bush on September 28, 2022

Transitioning From Diesel Fuel to Carbon Negative RNG, Aemetis and the American Power Group Demonstrated a Dual Fuel System to Reduce Carbon and Tailpipe Emissions Within Existing Diesel Fleets Using Lower Cost RNG Fuel

CUPERTINO, CA, Sept. 28, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas (RNG) and renewable fuels company focused on negative carbon intensity products, and the American Power Group demonstrated the patented “Turbocharged Natural Gas® Dual Fuel System” for truck engines to multiple truck fleet owners and operators who transport biofuels, animal feed, and other agricultural products for Aemetis and other businesses in the region. Earlier this week, the technology was demonstrated for regulatory agencies and policy makers in Sacramento.

The technology allows a turbo-diesel engine to operate on up to 65% natural gas and 35% diesel, including renewable diesel. The technology is already operating in more than 3,000 stationary engines and 1,000 trucks worldwide, complying with EPA Clean Alternative Fuel Vehicle Conversion regulations.

The American Power Group, founded in 2009, developed the patented dual fuel technology to simultaneously combust two fuels, natural gas and diesel fuel, to power a diesel engine. A truck operated using Aemetis locally produced, dairy Renewable Natural Gas (RNG) and renewable diesel or biodiesel would be carbon negative, low emission and lower cost than diesel. The system maintains the power of a 100% Diesel engine while using less than half as much diesel fuel, leading to significantly fewer emissions.

Annual fuel savings from using RNG to replace up to 65% of diesel fuel have been shown to exceed $30,000 per truck per year, depending upon the respective cost of the fuel sources. Dairy RNG is usually $2.00 to $3.00 per Diesel Gallon Equivalent (DGE) less expensive than petroleum diesel. Retrofit costs are about $10,000 plus the cost of an on-board natural gas tank. The system adds natural gas tanks to a Class 8 diesel tractor and uses software to manage the two fuels, saving money at the pump while reducing emissions. The dual fuel system is fully automated, eliminating the need for operator intervention.

“These dual fuel systems represent an important transition step in California’s evolution to cleaner air and ultimately net-zero carbon emissions,” stated Eric McAfee, Chairman and CEO of Aemetis. “Currently, the heavy-duty vehicle fleet in California is still more than 98% diesel-powered. The low-cost conversion of existing diesel trucks will drive the adoption of reduced cost, lower emission fuels such as dairy-generated RNG,” added McAfee.

“This patented technology replaces up to 65% of the fuel used by a turbo diesel truck with renewable natural gas at only about a $25,000 cost of conversion that takes less than one day to complete,” said Chuck Coppa, CEO of APG. “By using Aemetis dairy RNG, a waste material is powering the replacement of diesel which significantly reduces emissions.”

APG created a digital design to safely introduce natural gas into the air induction system before the turbocharger spins up - in essence turbocharging air already going to the engine. The spinning air reaches the compression chamber to create higher energy at the point of combustion.

Aemetis is focused on producing below zero carbon intensity renewable fuels, including negative carbon intensity renewable natural gas (RNG), sustainable aviation fuel (SAF), renewable diesel (RD), and bioethanol. Aemetis is also in the process of permitting two carbon capture and sequestration (CCS) wells near its biofuel facilities in Central California. Our projects maximize the use of agricultural waste or by-products as feedstocks to produce renewable fuels, while leveraging the value of federal and state carbon reduction programs.

About Aemetis

Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the development and construction of the dairy renewable natural gas projects, our compliance with governmental programs, dairy natural gas pricing, savings from conversion and our ability to access markets and funding to execute our business plan. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021 and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

External Investor Relations
Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
[email protected]

Company Investor Relations
Media Contact:
Todd Waltz
(408) 213-0940
[email protected]

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