MANUFACTURING
He points out that wood — even soft wood — is pretty tough stuff . “ Trees survived and evolved over billions of years because they didn ’ t want animals to be able to eat them and break down the molecules that they made themselves out of ,” he says .
Yet Murphy describes Aemetis ’ work as a significant breakthrough in the biofuels industry . “ This represents not only a real big improvement over petroleum ,” he says , “ but a big improvement over most of the projects that are on the market making renewable diesel or renewable jet fuel .”
Farm to fuel
McAfee has made a lot of money for himself and his investors while helping to solve global climate change , which is taking center stage as one of the biggest problems in the world . An important component of his success has been his ability to access federal , state , and private-sector programs and funds targeting global warming .
McAfee reports his company has received a total of $ 57 million in grants and tax incentives . In March 2021 , seven months before inking the Delta Air Lines deal , Aemetis received a sales tax exclusion worth more than $ 1 million from the California Alternative Energy and Advanced Transportation Financing Authority to help pay for the expansion of the company ’ s cluster of dairy biogas production facilities . The company had previously received a sales tax exclusion worth more than $ 725,000 .
In addition to orchard wood , Aemetis plans to utilize forest waste wood at its new plant , but that piece of the project is on hold , at least for now , McAfee says . Even with the state covering the expensive and energyintensive work of harvesting wood for its fire-control treatments , it ’ s still a haul to get the biomass out of the forest , down mountain roads and to the company ’ s facility .
As of this moment , and it could change , it does not pencil out for Aemetis to apply its technology to forest waste wood . Aemetis could make a profit turning orchard wood into a key biofuel ingredient because California ’ s cap-and-trade program , launched in 2013 , provides a funding source : the California Air Resources Board ’ s Low Carbon Fuel Standard credits program . Energy producers that exceed the state ’ s carbon emission limits could purchase credits from Aemetis — a company with emissions below state limits — to offset their pollution .
McAfee reports that 65 percent of Aemetis ’ revenue comes from LCFS credits . So why does this system that works in an orchard not work in a forest ?
The waste wood from the almond trees Aemetis will process can be easily measured , and the amount of carbon pollution being offset can be easily calculated . Not so with forest waste .
54 comstocksmag . com | January 2022