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Aemetis Biogas Receives $11 Million From Sale of IRA Investment Tax Credits
Company Sells $13.5 Million of Tax Credits Generated by Renewable Natural Gas and Solar Project Investments
CUPERTINO, CA - January 13, 2025 (NEWMEDIAWIRE) - Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company, announced today the receipt of $11 million, after transaction costs, from the sale of $13.5 million of Inflation Reduction Act (IRA) investment tax credits generated by a solar electricity generation project at the Keyes ethanol plant and two dairy biogas digesters built as Aemetis Biogas projects. Aemetis has also entered into an agreement to sell the tax credits generated by the additional three dairy digesters that Aemetis commissioned in December 2024.
The IRA was signed into law in August 2022 and provides transferable federal income tax credits for investments in renewable energy projects, as well as production tax credits for low carbon intensity renewable fuels. Aemetis generated IRA Section 48 investment tax credits from its investment in a 1.9 megawatt solar photovoltaic and battery microgrid built at the Keyes ethanol plant and from two dairy biogas digesters constructed and placed in service by Aemetis during 2024.
"The $11 million of net proceeds received by Aemetis achieves the goals of the Inflation Reduction Act by attracting domestic investment and job creation while reducing dependence on imported crude oil by encouraging the conversion of waste into renewable fuels," stated Eric McAfee, Chairman and CEO of Aemetis. "Aemetis expects to generate more than $500 million of IRA investment and production tax credits to support our biogas projects, carbon intensity reduction at our ethanol plant, and the construction and operation of our CO2 sequestration wells and other projects."
The Aemetis Keyes ethanol plant supplies about two million pounds of animal feed daily to feed more than 100,000 dairy cows at about 80 dairies in the local area. To capture methane at dairies and produce renewable natural gas (RNG), Aemetis has completed and is operating twelve dairy digesters, 36 miles of biogas pipeline, a central biogas to RNG production facility, and a PG&E utility gas pipeline interconnection. Aemetis plans to produce 550,000 MMBtu of RNG in year 2025.
Approximately 25% of methane emissions in California are emitted by dairy waste lagoons that do not have methane capture systems such as those installed by Aemetis. When fully built, the Aemetis Biogas project plans to capture methane from the waste produced by more than 150,000 cows at dairy farms in California and produce 1,650,000 MMBtu of renewable natural gas from captured dairy methane each year. When fully operational, the Aemetis Biogas project will reduce greenhouse gas emissions equivalent to an estimated 6.8 million metric tons of carbon dioxide over ten years.
About Aemetis
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the operation, acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis is operating and actively expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California's Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis owns and operates an 80 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis acquired the 125-acre former Army Ammunition Production Plant site in Riverbank, California to develop a carbon sequestration project and a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery to utilize renewable hydrogen, hydroelectric power, and renewable oils to produce low carbon intensity renewable jet and diesel fuel. For additional information about Aemetis, please visit www.aemetis.com.
Safe Harbor Statement
This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements include, without limitation, projections of financial results in 2025 and future years; statements relating to the development, engineering, financing, construction and operation of the Aemetis ethanol, biogas, SAF and renewable diesel, and carbon sequestration facilities; and our ability to promote, develop, finance, and deploy technologies to produce renewable fuels and biochemicals. Words or phrases such as "anticipates," "may," "will," "should," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "showing signs," "targets," "view," "will likely result," "will continue" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Reports on Form 10-K, and in our other filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.
External Investor Relations Contact: Kirin Smith PCG Advisory Group (646) 863-6519 ksmith@pcgadvisory.com
Company Investor Relations/ Media Contact: Todd Waltz (408) 213-0940 investors@aemetis.com
