Aemetis Riverbank project awarded U$12 million California tax waiver
In the United States (US), advanced renewable fuels and biochemicals company Aemetis Inc., has announced that the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) awarded the Aemetis Riverbank Advanced Biofuels Project an exclusion from the payment of California sales and use taxes valued at US$12.7 million.
The CAEATFA financial assistance program provides for up to US$100 million per year of California state funding support for projects that enhance job creation and advance other state goals, including reducing air pollution, improving the environment and lowering carbon emissions.
We appreciate the work by the CAEATFA staff and board in reviewing the Aemetis Riverbank Advanced Biofuels Project near Modesto and providing a significant contribution towards the construction of the plant. The sales and use taxes exemption program is important to the growth of investment and jobs in California. The Aemetis Riverbank Advance Biofuels Project is fortunate to be selected as a recipient of about 12 program of the program’s funding for year 2018, said Eric McAfee, Chairman and CEO of Aemetis.
According to McFee, California produces about 3 billion pounds (≈ 1.36 million tonnes) of waste almond and walnut wood from 1.5 million orchard acres annually.
Instead of burning this wood waste, as well as vineyard, forest, construction and other wood waste, the Aemetis Riverbank plant is designed to convert the waste biomass into ethanol that is needed to meet California air quality mandates, said Eric McAfee.
The CAEATFA award is an exemption from California sales and use taxes that would otherwise be due on purchases for the construction of the planned US$175 million cellulosic ethanol plant at the former Riverbank ammunition plant in Riverbank, California. The tax exemption directly reduces the amount of funding required to construct the Riverbank facility.