Aemetis acquires 55mgy ethanol plant in California
US-based advanced fuels and renewable chemicals company Aemetis has acquired ethanol plant owners Cilion, which includes a 55 million gallon per year production plant.
The acquisition is set to advance Aemetis’ plans to use the existing ethanol plant’s infrastructure to create a next-generation biorefinery producing advanced biofuels and renewable chemicals, in addition to ethanol and animal feed products.
Other Cilion assets included in the deal are spare parts and equipment for use at the plant, which is based in Keyes, California.
Aemetis was already working with Cilion after signing a multi-year project and lease agreement in 2010 to upgrade, restart and operate a Cilion biofuels plant, which restarted in April last year.
‘The acquisition of the Keyes plant accelerates our plan to expand this world-class ethanol production facility into a next-generation biorefinery capable of producing advanced renewable fuels and biochemicals,’ says chairman and CEO of Aemetis Eric McAfee.
In conjunction with the acquisition Third Eye Capital, Aemetis’ existing senior lender, provided a $15 million term loan and an $18 million working capital financing facility to assist in the purchase and to provide ongoing working capital.