AE Cilion Plant Re-Start

The Aemetis Biorefinery
Advanced Renewable Fuels and Chemicals Produced
by Conversion of Existing Biofuels Facilities
May 2014
Disclaimer
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based
on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forwardlooking by reason of context, the words “may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or
continue” and similar expressions identify forward-looking statements.
Actual results, performance or events may differ materially from those projected in such statements due to, without limitation: (i) general
economic conditions, (ii) ethanol and gasoline prices, (iii) commodity prices, (iv) distillers grain markets, (v) supply and demand factors, (vi)
transportation rates for rail/trucks, (vii) interest rate levels, (viii) ethanol imports, (ix) changing levels of competition, (x) changes in laws and
regulations, including govt. support/incentives for biofuels, (xi) changes in process technologies, (xii) the impact of acquisitions, including
related integration issues, (xiii) reorganization measures and (xiv) general competitive factors on a local, regional, national and/or global basis,
(xv) natural gas prices, and (xvi) chemicals and enzyme prices.
The matters discussed herein may also involve risks and uncertainties described from time to time in the company’s annual reports and/or
auditors’ financial statements. The company assumes no obligation to update any forward-looking information contained herein, and
assumes no liability for the accuracy of any of the information presented herein as of a future date.
Aemetis Value Proposition

Strong positive cash flow from $178 million biofuels/biochemical revenues in 2013

Operating plants in California and India cost $165 million to build/upgrade

Patented technology to produce advanced fuels by upgrading facilities

High efficiency production with significant scalability at low cost

Lower cost than traditional gasoline and diesel, with high oxygen/octane

Strong management and board leadership with proven track record
Aemetis means “The One Prudent Wisdom”:
Replacing crude oil with renewable resources for fuels and chemicals


Ae means “the one” in Scottish
Metis means “prudent wisdom”; Metis is the mother of Athena, the Goddess of Wisdom
in Greek mythology
Table of Contents
1.
2.
3.
4.
5.
Introduction
Company Overview
Industry Overview
Company Highlights
Financial Overview
5
9
23
36
43
4
Introduction
5
Executive Management
 Founder, Chairman and CEO of Aemetis since 2006
Eric McAfee
Chairman and CEO
 Founder of energy companies including $800 million revenues Pacific Ethanol (Nasdaq: PEIX)
and $400 million market cap Evolution Petroleum (NYSE: EPM)
 Founded seven public companies, including Procera Networks (Nasdaq: PKT)
 Joined Aemetis in 2007 as Corporate Controller and became CFO in 2010
Todd Waltz
EVP and CFO
 Previously held senior financial management roles with Apple, Inc. for 12 years
 Prior to Apple, worked with Ernst & Young and Litton Industries
 Joined Aemetis in 2006 and has held senior leadership positions
Andy Foster
EVP and President,
Aemetis Advanced Fuels
 Previously served as an executive at BMC Software, Cadence Design Systems, and eSilicon
Corporation
 Served in the George H.W. Bush White House as Associate Director – Office of Political Affairs
 Served as Deputy Chief of Staff for Illinois Governor Edgar
 Joined Aemetis in 2007 as President of Biofuels Marketing, Inc.
Sanjeev Gupta
President, Aemetis
International Operations
 Managed construction of the biodiesel production facility in Kakinada, India
 President of Universal Biofuels, a subsidiary of Aemetis, since 2009
 Previously served as president of a global petrochemical trading company with
$250 million in annual revenues
6
Company Summary

Aemetis, Inc. (the “Company”) was founded in February 2006 by biofuels industry veteran Eric McAfee and has since grown to
become a leading second-generation renewable fuels and specialty chemicals company with $178 million in revenues during 2013

Since its formation, the Company’s primary focus has been the development and deployment of patented industrial biotechnology
to convert first-generation ethanol and biodiesel plants (which primarily use corn and edible oils as feedstocks) into advanced
second-generation biorefineries (which are capable of using non-food substitutes to produce ethanol, biodiesel, renewable diesel
and renewable jet fuel, and renewable chemicals and feed products)

The Company currently wholly owns and operates two integrated second-generation plants with combined production capacity of
110 million gallons per year:
Keyes Plant
India Plant
Location:
Keyes, California (Northern California)
Type:
Ethanol renewable fuels plant
Capacity:
60 million gallons per year
Feedstock:
Grain sorghum and corn
In August 2013, Aemetis Keyes became the first converted corn
ethanol plant certified by the EPA as a producer approved to
use milo/biogas/CHP to receive D5 Advanced Biofuel RIN’s.
Location:
Kakinada, India
Type:
Biodiesel and renewable chemicals plant
Capacity:
50 million gallons per year
Feedstock:
Waste tallow, cooking oil and Stearine
In 2013, India began phasing out diesel subsidies, causing
prices to rise and biodiesel margins to grow. The EU market
and California are rapidly growing, profitable markets for the
non-food, low-carbon biodiesel produced in India.

The Company operates a biotechnology R&D lab in Maryland and holds five advanced biofuels technology patents

The Keyes plant generated $10 million of Adjusted EBITDA in Q4 2013 and $14 million in Q1 2014.

The Company is a federally approved EB-5 borrower for up to $36 million of 3% interest rate subordinated debt funding, and has
received $5 million from the EB-5 offering into escrow or funded to Company.
7
Company Highlights
Strong Asset Coverage
Strategically Located to
Serve Large Addressable
Markets
Favorable Demand /
Supply Dynamics
Healthy Margin
Improvement
Improving Free Cash
Flow Profile
Substantial Upside from
Next Generation
Technology
Experienced
Management Team
 Keyes Plant was originally constructed in 2008 at a cost of $132 million, then upgraded at a cost of $13
million for a total investment of $145 million
 India plant was originally constructed in 2008 at a cost of $22 million and upgraded with glycerin refinery
 $165 million aggregate construction cost for 100% owned plant assets
 Proximity of the Keyes Plant to the deep water port of Stockton and Union Pacific rail system provides
access to milo feedstock from key international and domestic markets
 California is a $1.3 billion ethanol market and a $120 million wet distillers grains (“WDG”) market with more
than one million dairy cows
 100% of ethanol and distillers grains, an ethanol by-product, are sold within 80 miles of the Keyes Plant
 India is a large producer of waste Stearine and beef tallow, the key feedstocks for the India Plant
 Environmental regulation and favorable secular trends are expected to drive substantial increases in the
demand for biofuels
 Current production capacity of advanced biofuels is well below future mandated levels
 Production of advanced biofuels using less expensive milo is expected to substantially improve profitability
at the Keyes Plant
 January 2013 deregulation of diesel price in India is expected to result in substantial margin improvement
for Aemetis’ biodiesel plant in India
 Plant conversion, industry trends and margin expansion are contributing to improving cash flow
 Four quarters positive EBITDA: record Adjusted EBITDA of $10 million in Q4 2013 and $14 million in Q1 2014
 Aemetis has five granted patents in next generation technologies
 First global licensee of renewable jet and diesel fuel technology from Chevron Lummus and Applied
Research Associates (“Chevron Lummus / ARA”)
 Founded in 2006, Aemetis is led by biofuels industry veterans with extensive global experience
 Members of the Board of Directors have extensive expertise in the chemicals, agriculture, food,
molecular biology and biotechnology industries
8
Company Overview
9
Aemetis Vision
Aemetis is an international renewable fuels and biochemicals company
using patented industrial biotechnology for the conversion of firstgeneration ethanol and biodiesel plants into advanced biorefineries.
Traditional Corn Ethanol and
Vegetable Oil Biodiesel
Advanced Biofuels
(Sorghum/Tallow Feedstocks)
PAST
PRESENT
FUTURE
G1
G2
G3
10
Non-Food, Low Carbon, Less Land
Fuels/Chemicals
Aemetis Key Highlights
 Owns and operates renewable fuels and chemicals facilities in US and India
− Acquired Cilion, Inc. 60 MGY ethanol plant in Keyes, CA in 2012 (build and upgrade cost $145 million)
− Built 50 MGY advanced biofuel plant in Kakinada, India in 2008 (build cost $22 million)
 Acquired Zymetis, Inc., a novel biorefining technology company, for its patent portfolio and production
processes in 2011
− 5 granted patents on enzyme and microbe technology for biofuels production
− First global licensee of renewable jet and diesel fuel technology from Chevron Lummus / ARA
 $178 million in 2013 revenues; quarterly revenues grew to a record $60 million in Q1 2014
 Four quarters positive EBITDA: record Adjusted EBITDA of $10 million in Q4 2013 and $14 million in Q1
2014
 125+ employees worldwide
Key Customers
11
Key Company and Industry Milestones
February 2007
Acquired Energy Enzymes - Former DOE funded enzyme technology for enzyme production and integration
November 2008
Mid-2009
April 2011
Built 50 MGY non-food feedstock and biomass energy biorefinery in Kakinada, India to use waste stearine and tallow to produce
biodiesel and glycerin
Obtained necessary permits and approvals to sell biofuel into Europe, U.S. and Indian domestic market
Leased, retrofitted and restarted operations of 60 MGY ethanol plant in Keyes, California owned by Cilion, Inc.
July 2011
December 2011
January 2012
Acquired Zymetis, Inc., a novel biorefining technology company, for its patent portfolio and production process
Federal $0.45 per gallon ethanol blender tax credit ended
Completed construction of India refining unit and obtained permits to sell into domestic food markets in India
April 2012
July 2012
December 2012
Glycerin refining and oil pretreatment units completed at India Plant, producing refined glycerin for pharma and industrial use
Acquired 60 MGY ethanol plant in Keyes through acquisition of 100% of Cilion, Inc. for 11% of common stock and $15m cash
EPA ruling that ethanol made from milo and biogas using CHP is advanced biofuel with 50% reduction in carbon content
January 2013
June 2013
India government begins phase out of 35% diesel subsidies, increasing the domestic India sales price and margins for biodiesel
Achieved high-volume production of lower-carbon ethanol using milo feedstock and a Combined Heat & Power (CHP) system in
an integrated process with traditional feedstock
India Plant generated more than $32 million of revenue in 2013 and $2.5 million of positive cash flow
June 2013
August 2013
February 2014
($ in thousands)
$600
Received EPA approval as the first converted corn ethanol plant approved to produce D5 Advanced Biofuels using milo and
biogas with the Keyes plant’s existing Combined Heat & Power system
Announced commissioning of biodiesel distillation unit at India Plant, the only large-scale distilled biodiesel plant in India
Cumulative Ethanol, Biodiesel and Other Revenue
$500
$400
$300
$200
$100
$0
Ethanol
Biodiesel
12
Keyes Plant Description
General
 Designed by Praj Industries, an industry leading builder of ethanol plants that has been involved in the
design and development of more than 450 alcohol plants
Products &
Production
 Stabilized production capacity of more than 60 MGY, with permits allowing up to 75 MGY
 Products include:
− Ethanol – $111.2 million of revenue in FY 2013
• Approved by EPA in August 2013 for production of advanced biofuels
− Distillers grains – $30.2 million of revenue in FY 2013
− Corn oil – $2.6 million of revenue in FY 2013
 Achieved 20 months of continuous operations from May 2011 to January 2013; an industry milestone
 In June 2013, achieved high-volume production using milo and a Combined Heat & Power (CHP) system
in an integrated process with traditional feedstock
Feedstock
 In January 2013, the plant was retrofitted to accommodate the use of milo feedstock
 84 million pounds of advanced biofuels feedstock (milo) used in biofuels production in 2013
Systems
 Plant control system can be managed from the on-site control center or remotely by the plant’s
operations managers
 Zero waste water discharge with on-site water recycling and purification system
 Combined heat and power system fully operational
 Steam generation system powered by three natural gas-fired Victory Energy steam boilers
 4.5 MW steam turbine generator supplies the electrical power required for production by using natural
gas or biogas
13
Keyes Plant Description (continued)
Location
 Access to the Union Pacific rail line provides access to key feedstock markets
 Close proximity (40 miles) to the deep water Port of Stockton provides access to less expensive milo
from key international feedstock markets (e.g., Argentina)
 100% of ethanol and WDG production sold locally
 California is one of the largest ethanol markets (1.3 BGY) and represented approximately 10% of the
total U.S. ethanol market in 2012
 Strong regulatory support for ethanol includes the California Low Carbon Fuel Standards and the
California Energy Commission biofuels grant programs
Customers
 100% of distillers grains production is sold within 80 miles of the Keyes Plant location, thereby
eliminating the need and cost of large dryers
 100% of the ethanol produced at the Keyes Plant is sold to refiners within 80 miles of the Keyes Plant,
and is blended into gasoline sold in San Jose, Sacramento and San Francisco
Value
 Original build cost of $132 million in 2008, upgraded for $13 million and acquired by the Company in
July 2012
 Total build cost $145 million
14
Keyes Plant Aerial View
1) Union Pacific Rail System access
2) Two corn/milo storage tanks (owned by A.L. Gilbert) and one
feedstock bin (owned by Aemetis)
3) Liquefaction Area
4) Three 1.15 MG fermentation tanks and one 1.5 MG beer well
5) Distillation and Evaporation
6) Cooling Towers and three boilers
7) Distiller Grain processing and loading area
8) One 1.05 MG denatured ethanol storage tank, two
210,000 gallon 200-proof ethanol storage tanks and one
63,000 gallon 190-proof ethanol storage tank
9) Ethanol truck loading area
10) 3,100 sq. ft. office building
11) 1.5 MG water storage tank
12) Control center and laboratory
A.L. Gilbert
Feedmill
1
3
5
4
2
9
12
11
8
6
7
15
10
Keyes Plant Photos
16
Technology & Production Process
Typical Dry Mill Ethanol Process(1)
1) Aemetis’ distillers grains are sold wet and therefore do not require large and expensive industrial dryers which often require significant
maintenance.
17
Aemetis Process Benchmarking
Aemetis sells ethanol in California where it demands a premium price over ethanol sold in the U.S. on average. The Keyes Plant
is one of the most efficient and productive facilities in the industry, with a higher yield than the industry average.
Los Angeles Ethanol Price vs. Mid-West Ethanol Price
Yield (gallons/bushel)
Series 1
$3.20
3.00
$0.18 higher ethanol pricing(1)
2.95
$3.00
2.90
$2.80
4% higher efficiency than the industry(2)
2.90
2.85
2.80
2.80
$2.60
2.75
$2.40
2.70
2.65
$2.20
2.60
LA Ethanol Price
2.55
12/1/13
9/1/13
6/1/13
3/1/13
12/1/12
9/1/12
6/1/12
3/1/12
12/1/11
9/1/11
6/1/11
$2.00
2.50
Keyes
Chicago Ethanol Price
1) Source: Oil Price Information Service.
2) Source: Industry average yield - Renewable Fuel Association.
18
Industry
Destination Model a Competitive Differentiator
West Coast location and large local markets provide several advantages over Midwest ethanol producers

10% ethanol mandate in California is approximately a 1.3 billion gallon market yearly

Given limited production capacity, California must import over 1 BGY of ethanol to
meet demand

Ethanol produced in California has a much lower carbon content which translates into
higher selling prices per gallon

Less expensive to ship corn to California than to ship ethanol and distillers grains to
California

−
Unit trains (100 cars); ease of handling; short turnaround times; fewer delays
−
Proximity to customers avoids the need to dry distillers grains, significantly
reducing energy and handling costs
Ethanol shipments from the Midwest competes with crude oil for rail access which
has driven up the price of ethanol to the benefit of producers in California
−
Rail tanker car shortage driven by demand for rail cars from new oil fields (e.g.
Bakken and Canada) without pipelines
−
Safety concerns regarding older tanker cars; new tanker regulations
−
Long lead times coupled with limited availability of new rail cars will likely result in
a prolonged shortage of tanker cars
19
CA Dairy Concentration Map
Keyes Plant
India Plant Description
General
 Built and 100% owned by Aemetis subsidiary Aemetis International
Products &
Production
 50 MGY nameplate biodiesel production capacity
 50 MGY additional capacity can be added at a cost of approximately $15 million
 Products
− Biodiesel: $4.3 million in revenue for FY 2012 and $16.6 million for FY 2013
− Refined glycerin: $2.1 million in revenue for FY 2012 and $4.6 million for FY 2013
− Natural refined palm oil and other: $7.8 million in revenue for FY 2012 and $11.6 million for FY 2013
 India subsidiary received an Indian Pharmacopeia license in Q1 2012, enabling sale of refined glycerin to the
pharmaceutical industry
Feedstock
 Largest India plant to use waste stearine and beef tallow, saving 8-10% compared to edible palm oil
 Feedstock requirements sourced from local suppliers
 Currently the only India plant not paying 10% tariff when using imported feedstock
Systems
 Glycerin refining and oil pretreatment units completed in Q2 2012
Location
 India is a large producer of stearine and beef tallow, the key feedstocks for the India Plant
Customers
Value
 Pharmaceutical and industrial customers for refined glycerin
 Continued European sales of biodiesel
 Original plant build cost of $22 million in 2008
 Historically, the Indian government subsidized petroleum-based diesel, which made biodiesel uncompetitive. As a
result, the India Plant focused on exporting biodiesel and producing glycerin
Market Dynamics
 In January 2013, the Indian Government announced it would gradually end subsidies to the diesel market,
allowing local prices to rise over time to the world price, which is about 35% higher
 The Company currently sells its biodiesel in India at a small discount to diesel and anticipates plant utilization will
grow in 2014 based upon elimination of diesel subsidies, as well as expanding EU and California shipments
20
India Plant Photos
21
Intellectual Property
The Company operates an R&D lab in Maryland and earned five granted advanced biofuels technology patents.
5 Awarded
Licensed
 Chevron Lummus / ARA renewable Jet and Diesel
Fuel:
 Five awarded patents on enzyme and microbe technology:
−
Patented plant wall degradative compounds and systems
−
Patented chitin degradative compound and systems
−
Patented cloning abilities
−
Patented degradation of whole plant materials by
saccharophagus degradans
−
Patented processes for plant polysaccharide conversion
22
−
Catalytic hydrothermolysis process converts
plant oils to crude oil intermediates
−
High pressure high temperature process in
single reactor
−
Only known 100% replacement “neat” jet fuel
−
November 2012 Canadian National Research
Council, first flight of 100% renewable jet fuel
Industry Overview
23
U.S. Ethanol Production

Ethanol is high octane (113) and cleaner burning motor fuel derived from corn, grain sorghum and other plants which can be
used safely in virtually every gasoline engine at varying levels

Ethanol is mandated by Federal Air Quality and renewable fuels laws to replace the carcinogenic chemical MTBE

With more than 13 billion gallons of annual US production, ethanol represents approximately 10% of the U.S. gasoline supply

The majority of American consumers are using E10 ethanol blends (10% ethanol), and E15 (15% ethanol) and E85 (85%
ethanol) availability is increasing

The U.S. ethanol industry has grown to 211 plants operating in 29 states and consumption has grown at a CAGR of 18.7%
from 2000 to 2012
U.S. Ethanol Production (1)
(millions of gallons)
16,600
13,312
13,929
13,298
13,218
14,600
12,600
10,938
10,600
9,309
8,600
6,521
6,600
4,600
2,600
1,622 1,765 2,140
2,810
3,404 3,904
4,884
600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(2)
1) Source: U.S. Energy Information Administration, December 2013 Monthly Energy Review
2) Source: Aemetis management estimates based on YTD production (as reported by EIA) and recent industry trends
24
Drivers of Ethanol Demand

The U.S. ethanol industry has grown to 211 plants with annual capacity of 15.2 billion gallons

Last year, in the midst of a severe drought, the industry produced about 13.3 billion gallons of ethanol, very close to 2010
levels
−
One of the primary drivers of Ethanol Demand in the U.S. is government mandates for renewable fuels
−
The Environmental Protection Agency requires gasoline blenders to use a certain amount of ethanol and other bio-fuels

The minimum levels for ethanol to continue to increase from 13.8 billion gallons in 2013 to 15.0 billion gallons in 2015 (1)

Refiners can meet the requirement by buying biofuel and blending it into gasoline or by accumulating credits known as RINs
and applying them to such requirements

Next year, blenders are expected to blend more ethanol to meet the increasing mandates

Every time ethanol is mixed into gas, or fuel already blended with ethanol is imported, fuel blenders receive a credit from the
government (a “RIN”), and that credit can be sold to other companies that don’t blend ethanol to help them meet federal
requirements

If fuel blenders and refiners fall short of their biofuel blending obligation, they can face fines of $32,500 a day
1) On November 15, 2013, the EPA proposed a change to the 2014 Renewable Fuel Standards. A final 2014 RFS RVO is due in June 2013.
25
The Increasing RFS Mandate (1)
In order to meet the increasing Renewable Fuel Standards, holding all other variables constant, obligated
parties are expected to blend greater amounts of ethanol

The current RFS was enacted with the Energy Independence and Security Act of 2007 (EISA2007)

RFS created two principal categories – renewable fuels and advanced biofuels
−
“Renewable fuels” must reduce greenhouse gas emissions by 20% relative to gasoline or diesel and “advanced biofuels”
must reduce greenhouse gas emissions by 50%
−
RFS includes specific volume requirements for three subcategories of advanced biofuels: unspecified, cellulosic biofuels,
and biomass-based diesel
−
Corn-based ethanol is excluded from the advanced biofuel category
Existing U.S.
Corn-Ethanol
Production
Capacity
Billions of Gallons
Renewable Fuel Standard Mandate Schedule (2)
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Biomass-based Diesel
0.5
0.7
0.8
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
Non-cellulosic Advanced
0.1
0.2
0.3
0.5
0.8
1.0
1.5
2.0
2.5
3.0
3.5
3.5
3.5
4.0
Cellulosic Advanced
0.0
0.1
0.3
0.5
1.0
1.8
3.0
4.3
5.5
7.0
8.5
10.5
13.5
16.0
Conventional Biofuels
10.5
12.0
12.6
13.2
13.8
14.4
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
1) On November 15, 2013, the EPA proposed a change to the 2014 Renewable Fuel Standards. Once the proposal is published in the
Federal Register, it will be open for a 60 day public comment period.
2) Source: United States Environmental Protection Agency
26
California Low Carbon Fuel Standard (LCFS)

LCFS is a state-enacted policy to reduce greenhouse gas emissions from motor vehicles

Under LCFS, every fuel has a “carbon intensity value” (CI)
−
CI values estimate the level of lifecycle greenhouse gas emissions of a particular fuel taking into account the feedstock,
the production process and plant location
−
LCFS requires substitutes for fossil fuels to have lower carbon intensity than the fuels they replace
Ethanol produced through an LCFS approved pathway can be sold at a premium because it reduces the carbon credits the
blender is required to purchase in the market

−
The value of LCFS to the fuel producer depends on the price of a carbon credit and the CI value of the fuel
•
Lower CI values produce higher premiums
•
Higher carbon credit prices produce higher premiums
Carbon Intensity Values(1)
100
90.1
80
80.7
73.75
60
70.7
68.91
56.66
53.62
51.82
40
20
0
Benchmark
MW Corn + NG MW Corn + NG
+ LCFS
MW Corn +
biogas + LCFS
Chicago
CA Corn + NG + CA Corn + biogas
LCFS
+ LCFS
Aemetis Pathways
27
Milo + NG
Milo + biogas
Blenders Have Been Using Surplus RINS to Meet Mandate
As the supply of RINs diminishes, refiners will be required to blend greater amounts of ethanol in order to
meet the increasing RFS mandate (4)

The last few years saw a build-up of a backlog of RINs as blending economics were strong and ethanol production surpassed
the RFS mandates, funded by $0.45 per gallon of taxpayer subsidy to oil refiners and fuel blenders

However, the RFS mandate is now higher than the 10% blend wall in 2013, resulting in no growth in RIN supply, growing
biofuels demand and an expected deficit of RINs by late 2014
Corn Ethanol (D6) RIN Stock Analysis(1)
Year
Production
2007
6,521
2008
9,309
2009
10,938
2010
13,298
2011
13,929
2012
13,300
2013
12,839
2014
12,839
2015
12,839
Exports
(399)
(1,195)
(742)
(563)
Mandate
4,700
9,000
10,500
12,000
12,600
13,200
13,800
14,400
15,000
Surplus
(Deficit)
1,821
309
438
899
134
(642)
(1,525)
(1,561)
(2,161)
RIN Stock(2)
Starting
Ending
0
1,821
1,800
2,109
2,100
2,538
2,400
3,299
2,520
2,654
2,640
1,998
1,998
474
474
(1,088)
0
(2,161)
Carry
Forward
Limit(3)
1,800
2,100
2,400
2,520
2,640
2,760
2,880
3,000
3,000
What is a RIN?
RINS
Carry
Forward
1,800
2,100
2,400
2,520
2,640
1,998
474
0
0
A Renewable Identification Number (RIN) is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and
trading as required by the United States Environmental Protection Agency's Renewable Fuel Standard. To ensure compliance, obligated parties
are periodically required to demonstrate they have met their RFS quota by submitting a certain amount of RINs to the EPA. Each RIN includes
a code, preceded by the letter D, which is used for identifying the renewable fuel category. D5 RINs meet the RFS criteria as an advanced
biofuel while a D6 RIN is used for traditional renewable fuels, including ethanol produced from corn.
1)
2)
3)
4)
Source: U.S. Environmental Protection Agency, Aemetis management estimates
Estimates only. May differ from EPA reported figures.
Carry Forward limited to 20% of mandate in the following year.
On November 15, 2013, the EPA proposed a change to the 2014 Renewable Fuel Standards. Once the proposal is published in the
Federal Register, it will be open for a 60 day public comment period.
28
RIN Pricing has Escalated with Diminishing Supply (1)
Aemetis is one of the few plants equipped and geographically positioned to obtain milo for production of the
D5 RIN and capture the premium in the market

D6 RIN prices had historically ranged between $0.01 to $0.05 but appreciated significantly in early 2013

This increase in prices reflected the market’s concern that rising RFS-mandated volumes and the blend wall would significantly
increase the cost to meet the RFS statutory volumes

Convergence is a result of D6 RIN scarcity, D5 has always been scarce

The price of RINs has decreased substantially since mid-July 2013 and the D5 / D6 pricing spread has widened to $0.07
D5 / D6 RIN Pricing Spread in dollars (2)
$ / gallon
1.6
1.4
1.2
1
0.8
0.6
0.4
$0.33
$0.26
0.2
0
1)
2)
Ethanol RIN Credit (D6)
Advanced Biofuel RIN Credit (D5)
On November 15, 2013, the EPA proposed a change to the 2014 Renewable Fuel Standards. Once the proposal is published in the
Federal Register, it will be open for a 60 day public comment period.
Source: Oil Price Information Service
29
10% Blend Wall Had Limited Growth Beyond Existing Ethanol Production

Prior to August 2012, gasoline / ethanol blends were primarily limited to 10%(1), referred to as E10, by the EPA

The term “Blend Wall” refers to the maximum amount of ethanol that can be blended in to gasoline as a result of this 10%
limitation until fuel retailers add pump stickers to show 15% ethanol content

The Blend Wall was effectively eliminated in August 2012 when the EPA approved use of 15% ethanol blends (“E15”) in lightduty vehicles beginning with model year 2001 which represents approximately 85% of all vehicle fuel consumption

Despite the approval of E15, U.S. oil refiners have actively opposed blends higher than E10

The 40% fall in corn costs in late Q3 2013 has created a large price gap between $105 crude oil and inexpensive sugars,
resulting in E85 fuel selling for only $2.65 per gallon in Iowa (compared to $4.00 gasoline prices)
12.0%
10,000
11.0%
8,000
10.0%
6,000
9.0%
4,000
8.0%
2,000
7.0%
0
6.0%
(2,000)
2009
2010
Blending (LHS)
2011
2012
10% Blend Wall (LHS)
Source: United States Energy Information Administration
1) E85 is permitted for Flex Fuel vehicles.
30
Production (LHS)
2013
Net Exports (RHS)
Gallons
% of U.S. Gasoline Consumption
The “Blend Wall”
Ethanol in Demand in Export Markets(1)
2013 U.S. exports, in millions of gallons
Canada
325
Europe
39
East
Asia
8
Middle
East
40
Mexico
31
Peru
30
Jamaica
10
India
13
Africa
10
Brazil
47
Rest of world =15
1) Source: Renewable Fuels Association www.EthanolRFA.org
31
Philippines
52
Favorable Supply / Demand Dynamics
In the near term, Aemetis is well positioned to benefit from the existing supply / demand imbalance
Demand Factors
Supply Factors
 At 15% of U.S. gasoline consumption, total ethanol demand
would increase from 13.3 BGY in 2013 to 19.9 BGY(1)
 Increased blending of ethanol is mandated by RFS (4)
− Corn-based ethanol mandate increasing from 13.8 BGY in
2013 to 15.0 BGY in 2015
− Advanced biofuels mandate increases from 2.8 BGY in
2013 to 3.8 BGY, 5.5 BGY, 7.3 BGY and 9.0 BGY in 2014 to
2017, respectively
 As oil prices increase, refiners will likely increase use of
ethanol in order to moderate gasoline price increases
 The heightened focus on energy independence and security
is anticipated to continue to help shape U.S. energy policy
and benefit the biofuels industry
 The $40 billion ethanol industry is a significant contributor
to the U.S. economy by employing more than 400,000
people and is a key industry for many rural communities
providing a level of political protection for biofuels
 There are 211 U.S. ethanol plants with aggregate production
capacity of about 15 BGY(2)
 New construction of traditional corn based ethanol plants
has virtually halted and only 4 plants with aggregate
production capacity of 158 MGY are under construction or
expansion(1)
1)
2)
3)
4)
Source: EPA; calculation based on 133 billion gallons of gasoline supplied during the last twelve months ending June 30, 2013.
Source: Renewable Fuels Association; as of January 2013.
Sources: American Coalition for Ethanol, Renewable Fuels Association and the Energy Independent (BBI International).
On November 15, 2013, the EPA proposed a change to the 2014 Renewable Fuel Standards. Once the proposal is published in the Federal
Register, it will be open for a 60 day public comment period.
32
Demand Outlook
Environmental policy, air quality, energy security and the growing need for domestic fuel sources are
anticipated to drive growth for ethanol for the foreseeable future. Other factors driving ethanol demand
include increased usage of ethanol for octane enhancement, high gasoline prices in recent years and a desire
to boost rural economies.
 In the past two decades, ethanol demand has been dependent on environmental issues, oxygenated
fuel requirements, reformulated gasoline programs in the U.S. and the phase-out of MTBE
U.S. Market
 The major legislative issue affecting future demand for ethanol is the new RFS schedule in the Energy
Independence and Security Act of 2007
 With the more aggressive biofuel targets, RFS is having more of an immediate impact than the original
renewable fuel standard
 In 2012, the ethanol industry supported more than 87,000 direct jobs, 295,000 indirect jobs and
contributed more than $30.2 billion in household income(1)
 Regardless how the national regulatory environment develops, California will likely continue to be a key
market for ethanol
California
Market
 The California ethanol market alone is approximately 1.3 BGY
 There are currently only three sizable ethanol plants operating in California with aggregate production
capacity of 180 MGY, requiring 1.36 BGY imported from other states to meet California biofuels demand
 At 60MGY, ethanol production from the Keyes Plant represents only 4.6% of the total California market
 California has a mandatory ten percent (10%) blend
1) On November 15, 2013, the EPA proposed a change to the 2014 Renewable Fuel Standards. Once the proposal is published in the Federal
Register, it will be open for a 60 day public comment period.
2) Source: Renewable Fuel Association – 2013 Ethanol Industry Outlook
33
Benefits of Milo as a Feedstock Alternative to Corn

Milo is a genus of numerous species of grasses and is mainly grown in dry and hot climates of the U.S. which are not
conducive for corn production

From an ethanol feedstock perspective, milo has several advantages over corn.
−
Unlike corn, in the U.S., milo is used primarily as a feed grain for livestock and not for food products
−
Milo is more drought tolerant than corn and uses significantly less water to grow
−
Milo is grown in hot and dry climates where land is less costly, and uses less fertilizer than corn
−
When used along with advanced process technologies, such as biogas digesters and combined heat and power, ethanol
produced from milo at a plant powered by biogas has 52% lower greenhouse gas emissions compared to gasoline

In addition to these advantages, average imported and domestic milo prices have historically been 5% to 10% below the price
of corn, making it an attractive feedstock alternative for ethanol

Aemetis’ Keyes Plant was converted in 2013 to utilize milo or corn, and can seamlessly combine feedstocks or switch
production between feedstocks depending on market conditions and prices
Price Received ($/bu)
U.S. Corn and Milo Pricing
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Corn
Milo
Corn
$4.41/bu
Dec. 2013
MIlo
$4.19/bu
Dec. 2013
Sources: USDA, National Agricultural Statistics Service, Quick Stats Database
34
Corn and Milo Prices Have Been Declining to Our Benefit
Price Received ($/bu)
Corn futures prices are falling as U.S. corn production for the 2013 / 2014 crop year is expected to reach a record level of 13.8
billion bushels according to USDA estimates as of September 2013.
8.00
7.75
7.50
7.25
7.00
6.75
6.50
6.25
6.00
5.75
5.50
5.25
5.00
4.75
4.50
4.25
4.00
U.S.
Corn and
andMilo
MiloPricing
Pricing
U.S. Corn
Corn
Milo
Sources: USDA, National Agricultural Statistics Service, Quick Stats Database
35
Company Highlights
36
Management Team
Eric A. McAfee, Chairman and CEO
 Founding shareholder of $800 million revenues Pacific Ethanol (NASDAQ: PEIX)
 Founding shareholder of several publicly-held energy companies including Evolution Petroleum (NYSE: EPM)
 Founded seven public companies and funded twenty-five private companies as principal investor
 Appointed as GlobalScot by First Minister to advise the country of Scotland on renewable energy
Todd Waltz, EVP and CFO
 Joined Aemetis in 2007 as Corporate Controller and became CFO in 2010
 Previously held senior financial management roles with Apple, Inc. for 12 years
 Litton Industries five years in accounting roles
 Ernst & Young five years to earn CPA and tax training
Andy Foster, EVP and President, Aemetis Advanced Fuels
 Joined Aemetis in 2006 and has held senior leadership positions including Senior Vice President, Chief
Operating Officer and his current role as President of the advanced fuels business
 Previously served as an executive at BMC Software, Cadence Design Systems and eSilicon Corporation
 Served in the George H.W. Bush White House (1989-1992) as Associate Director - Office of Political
Affairs and was Deputy Chief of Staff for Illinois Governor Edgar for five years
Sanjeev Gupta, EVP and President, Aemetis International
 Joined Aemetis in 2007 as head of Biofuels Marketing and became Managing Director of Universal
Biofuels subsidiary in India in 2008
 Previously head of petrochemical trading company with about $250 million of annual revenue and
offices on several continents
 Previously General Manager of International Marketing for Britannia Industries, a subsidiary of Nabisco
Brands in India
37
Board of Directors
Eric McAfee, Chairman and CEO, Founder
 Founder of Aemetis in 2006; Pacific Ethanol (Nasdaq: PEIX); Evolution Petroleum (NYSE: EPM);
Procera Networks (Nasdaq: PKT)
 GlobalScot appointed by First Minister of Scotland to advise on renewable energy
Harold Sorgenti, Director/Chairman of Governance & Nominating Comm.
 Former President/CEO of ARCO Chemical Company (12 years including IPO)
 Principal of Sorgenti Investment Partners (chemical investments)
John Block, Director
 Former Secretary of Agriculture from 1981-86 under President Reagan
 Food industry association executive for 18 years
Fran Barton, Director/Chairman of Audit Committee
 Former CFO of several multi-billion-dollar revenues companies: AMD, Atmel, Amdahl, UTStarcom,
Digital Equipment (PC division)
Dr. Steven Hutcheson, Director
 25 years bacterial molecular biology and molecular genetics at University of Maryland
 PhD University of California Berkeley in cellular biology
 Founder of Zymetis, Inc., acquired by Aemetis in 2011
20
Strategically Located to Serve Large Addressable Markets
Aemetis plants are strategically located to cost effectively serve three large target markets: renewable fuels,
food & feed and biochemicals.
Platform
California
Biofuels
Food & Feed
India
Biofuels
Biochemicals
Products
Market Size
Market Drivers
Advanced
Ethanol
California is a 1.3
billion gallon ethanol
market
Renewable Jet
and Diesel Fuel
U.S. jet fuel was a
$66 billion market and
diesel was a $189
billion market in 2012
Distillers Grain
and Corn Oil
Aemetis Strategic Advantage
 Environmental
Regulation
 High gasoline prices
 Energy independence
and security
 Economic contribution
to rural communities
 Located in CA, the largest
advanced fuel mandate in the
U.S.
 Proximity to Stockton, CA
deep water port for shipping
cost advantage to import milo
feedstock or export biofuels
California WDG
market is over $120
million with over one
million dairy cows
 Population growth
 Increased demand for
meat / milk from higher
median global per capita
income
 Proximity to more than 200
dairies and feedlots in CA
 Reduced shipping distance
eliminates costs to dry DG
Biodiesel
Global market
 Diesel deregulation in
India
 Population growth
 Industrial expansion
 Foreign investment
 India is a large producer of
stearine and beef tallow,
some of the lowest cost nonfood feedstocks for
renewable fuels
Refined
Glycerin and
Isoprene
$30 billion market
 Increased use of
biochemicals in
pharmaceuticals
 Asia‐Pacific represents largest
and fastest growing regional
market for glycerin
worldwide
39
Favorable Supply and Demand Dynamics

Increasing consumption of advanced biofuels is mandated by the new renewable fuel standard (“RFS”) schedule in the Energy
Independence and Security Act of 2007

Milo-based ethanol using milo, biogas and a Combined Heat & Power system was approved by the EPA as an advanced
biofuel in December 2012 that contains 52% less carbon intensity than gasoline

Aemetis’ Keyes Plant achieved high volume production of milo-based ethanol in June 2013 and is the first corn ethanol plant
to be approved by the EPA for the production of Advanced Biofuels and D5 RINs using milo, biogas and CHP
Renewable Fuel Standard (by type, 2009 −22)
40
Billions of Gallons
35
33
Non-cellulosic Advanced
30
Cellulosic Advanced
25
Conventional Biofuels
20
15
36
Biomass-based Diesel
11
13
14
2010
2011
15
1
17
1
18
1
22
21
2
2
24
3
26
3
28
4
30
4
4
4
Existing U.S.
Corn-Ethanol
Production
Capacity
10
5
0
2009
2012
2013
2014
2015
2016
2017
1) On November 15, 2013, the EPA proposed a change to the 2014 Renewable Fuel Standard
2) Source: United States Environmental Protection Agency
40
2018
2019
2020
2021
2022
Margin Improvement from Advanced Biofuel Production at Keyes Plant
Aemetis is the first converted corn ethanol plant that has received EPA approval to produce advanced
biofuels (D5 RIN) using milo/ biogas/ Combined Heat & Power system

In June 2013, Aemetis achieved high-volume production of lower-carbon ethanol using milo feedstock and a Combined Heat
& Power (CHP) system in an integrated process with traditional feedstock

Further deployment of this technology is projected to drive significant margin improvement as a result of lower feedstock
cost and the increased value of D5 RINs
Anticipated Gross Profit Expansion
Anticipated Gross Profit Bridge
Corn
Milo
$1.20
$0.17
Gross Profit (per gallon)
$1.10
($0.20 )
Unit Economics - $/gal
$1.00
$0.20
$0.90
$0.80
$0.80
$0.70
$0.68
$0.60
$0.50
$0.40
$0.30
Corn-Ethanol RIN Value & Corn/Milo
Gross Margin
LCFS
Spread
Natural Milo-Ethanol
Gas/Biogas Gross Margin
Spread
Ethanol Sales Price
$2.31
$2.31
Advanced Biofuel RIN/LCFS Value
$0.00
$0.20
Co-Product Sales Price (WDG)
$0.78
$0.78
Total revenue
$3.09
$3.29
Cost of Inputs (1)
$1.99
$1.81
Cost of Transformation (2)
$0.42
$0.68
Gross Profit
$0.68
$0.80
Gross Margin
22.0%
24.3%
1) Based on average discount of milo to corn of 10%.
2) Includes chemicals, enzymes, denaturant, natural gas, electricity and transportation.
41
Margin Improvement from Deregulation in India
January 2013, the Indian Government began to deregulate the diesel market, increasing the price of diesel
and biodiesel in India and resulting in substantial margin expansion for Aemetis’ Kakinada India plant

Historically, the Indian government set the market price of diesel by providing diesel producers a subsidy that lowered the
domestic India price of diesel significantly, which was politically popular

However, the diesel subsidy excluded biodiesel, which left producers of biodiesel at a substantial disadvantage

In January 2013, amid persistent budget deficits, the Indian government decided to let the free market set the price for diesel

The subsidy is being phased out at a rate of 45 paise ($0.72 based on an exchange rate of 62.6 INR/USD) per month
India Domestic Diesel Prices
Price per litre (Rs)
70.00
66.40
65.25
65.00
66.40
64.25
60.00
55.00
55.00
51.00
Estimated Biodiesel
production cost
50.00
45.00
40.00
January 2013
Delhi Diesel Price
Estimated Post-Deregulation
World Diesel Price
Source: Aemetis’ management estimates
42
Biodiesel Price
Financial Overview
43
Aemetis Historical Financial Performance
1)
Excludes share-based compensation.
44
Summary of Aemetis $36 million of Approved EB-5 Funding

Aemetis is approved for up to $36 million of unsecured EB-5 financing by US Customs & Immigration Service (USCIS)

Aemetis’ EB-5 Project company is compliant with EB-5 program job creation requirements

$1.5 million of funding has already been received by Aemetis from the regional center escrow account for project

$3.5 million in escrow currently pending approval by U.S. authorities

50+ applications submitted for initial review at $500,000 per investor
Benefits of EB-5 Financing to Aemetis

Fully subordinated to the new Senior Secured Notes

4 year notes at 3% interest with no principal payments until maturity

EB-5 investors may convert into common shares of Aemetis at $30.00 per share after 36 months
Aemetis Advantages to EB-5 Investors

U.S. citizenship granted for minimum subscription amount of $549,000 ($500,000 to Aemetis and $49,000 admin fee)

Investor funds can be immediately credited towards upwards of 1,300 direct and indirect jobs

Fully Insured FDIC Escrow Account holds funds until I-526 approval

Aemetis subsidiary in India (Universal Biofuels Pvt. Ltd.) with Indian executive management and staff facilitates
communications with India investors
45
Advanced Renewable Fuels and Chemicals Produced
by Conversion of Existing Biofuels Facilities
www.aemetis.com