Aemetis signs SAF supply agreement with American Airlines
US-headed renewable natural gas (RNG) and renewable fuels company Aemetis, Inc has announced that it has signed an offtake agreement with compatriot American Airlines Group (American Airlines) for 280 million (US) gallons (≈ 1.06 billion litres) of blended fuel containing sustainable aviation fuel (SAF) to be delivered over the 7-year term of the agreement starting in 2024.
According to a statement, the blended SAF to be delivered under this agreement is 40 percent SAF and 60 percent petroleum Jet-A to meet international blending standards.
The aggregate value of the agreement is estimated to be more than US$1.1 billion, including Low Carbon Fuel Standard (LCFS), Renewable Fuel Standard (RFS), 45Q, and tax credits.
American’s agreement with Aemetis builds on the airline’s efforts to reach net-zero carbon emissions by 2050. The airline has also committed to set a science-based target for the year 2035 and has aligned with the aviation industry goal of replacing 10 percent of conventional jet fuel with sustainable aviation fuel by 2030.
The American Airlines team is committed to reducing emissions from our operations, and sustainable aviation fuel is the cornerstone of our strategy in this decade. We’re proud to join with our oneworld partners in supporting the growth of SAF through this agreement with Aemetis, and we’re eager to continue collaborating with like-minded partners to meet aviation’s climate challenge, said Doug Parker, Chairman, and CEO of American Airlines.
The SAF is expected to be produced by the Aemetis renewable jet/diesel plant under development on a 125 acre former US Army Ammunition production plant site in Riverbank, California. The blended SAF is expected to be available for use by American Airlines starting in 2024.
American Airlines is demonstrating its leadership in the reduction of carbon emissions and improving air quality by using Aemetis Carbon Zero sustainable aviation fuel. The Aemetis Carbon Zero plant under development at the former Army Ammunitions Plant in Riverbank, California is designed to utilize zero-carbon electricity, carbon-negative hydrogen from waste wood, and renewable oils along with CO2 sequestration to produce low carbon sustainable aviation fuel, said Eric McAfee, Founder, Chairman and CEO of Aemetis.