Aemetis Inc (NASDAQ: AMTX) secured a United States Department of Agriculture loan guarantee for US$158mln to construct a cellulosic ethanol plant in California.
The industrial biotech company will turn the waste orchard wood that causes air pollution in Califonia's central valley into a renewable biofuel.
"It solves a health crisis. It also produces a very low-carbon fuel, actually a negative-carbon fuel, which is something that is very valuable in California," said CEO Eric McAfee.
The plant is expected to open in 2019.
The biotech company has a facility in India as well, making it one of the only five biodiesel producers in the country.
Shares of Aemetic Inc were up 9.4% Tuesday afternoon.
Aemetis Inc will present at the New York City Microcap Conference on April 9 and 10.