Aemetis, Inc. (NASDAQ: AMTX) shares are experiencing an ascent on the US stock market today, exhibiting a 25.82% increase to $4.59 at the last check during the current trading session. This surge in Aemetis stock value follows the approval of a significant funding initiative.
Aemetis (AMTX) has disclosed the endorsement by U.S. Citizenship and Immigration Services (USCIS) of a $200 million investment under the EB-5 program. This investment is designated for the Riverbank sustainable aviation fuel (SAF) production facility, the dairy renewable natural gas (RNG) project, the carbon sequestration initiative, and energy efficiency enhancements for the Keyes ethanol plant.
The Riverbank facility, having acquired Authority to Construct (ATC) air permits, is engineered to yield 78 million gallons per annum of SAF, targeting the aviation sector. Aemetis has already secured contracts exceeding $3 billion to supply airlines with SAF.
The $200 million funding provides advantageous terms at a nominal interest rate to finance various projects, including the dairy RNG project and the sustainable aviation fuel plant. These endeavors aim to address the swiftly escalating global demand for SAF from airlines.
The EB-5 funding, coupled with 20-year USDA guaranteed loans and other financial instruments, underpin the sustained expansion strategy outlined in the Aemetis Five Year Plan. Per USCIS determinations, the Regional Center has substantiated evidence asserting that 245 eligible investors will inject $200 million in EB-5 capital into Advanced Bioenergy II, the newly established commercial entity (NCE).
The NCE will channel investments into Aemetis Advanced Products Keyes, the job creating entity (JCE). In Keyes, California, Aemetis' existing 65 million gallon-per-year ethanol plant will be augmented by JCE. This expansion involves engineering, permitting, construction, and operational enhancements for improved energy efficiency and increased production.
Additionally, it will establish a biofuels production facility utilizing distillers' oil from the ethanol plant and other renewable oils to manufacture SAF and RD. Lastly, it will establish a carbon sequestration well to capture CO2 emissions generated by production processes and other CO2 emissions within the vicinity.