Renewable Natural Gas Production Capacity Expected to Increase by 80% to 550,000 MMBtu of RNG per Year From Twelve Digesters Processing Waste From Sixteen Dairies
CUPERTINO, CA, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on low and negative carbon intensity products, announced today that its Aemetis Biogas subsidiary started producing renewable natural gas (RNG) from its tenth anaerobic digester built to process waste from a dairy in Stanislaus County, California. The newly constructed digesters for five additional dairies are in final stages of commissioning and construction, which is scheduled to expand the total Aemetis Biogas operations to twelve digesters processing waste from sixteen dairies. Combined, the digesters are designed to produce an estimated 550,000 MMBtu per year of RNG in year 2025, an 80% increase from the current production capacity of 300,000 MMBtu per year.
This month, Aemetis also expects to generate an estimated $11.5 million from the sale of investment tax credits from the construction of dairy digesters and other projects earlier this year. The new digester completed today and the additional digesters under construction are expected to generate additional investment tax credits under the Inflation Reduction Act currently estimated at approximately $10 million of additional proceeds from tax credits to be sold during Q1 2025.
Separately, seven of the company’s existing operating dairy digesters are now in the final verification process for California Air Resources Board (CARB) pathway approval under the Low Carbon Fuel Standard (LCFS). The temporary pathway for dairy biogas under the LCFS is -150 carbon intensity. Aemetis expects the approved pathways will average -380 carbon intensity, resulting in approximately a 100% increase in LCFS credit revenues from the generation of additional LCFS credits. LCFS Pathway approval from CARB is expected in the first half of 2025. In the recent adoption by CARB of air emissions mandates through year 2045, Aemetis RNG production is expected to qualify for 20 years of avoided methane credits under the Low Carbon Fuel Standard in California.
“Aemetis Biogas is on track to increase RNG production by about 80%, including the dairy digester that began operation today and those projects nearing completion,” stated Eric McAfee, Chairman and CEO of Aemetis. “We are pleased with the rapid acceleration of revenue growth from new digesters, which generate revenues from LCFS credits and Renewable Fuel Standard D3 RINs.”
Aemetis digesters are connected to an existing 36-mile Aemetis biogas pipeline, feeding the central RNG production facility located at the Aemetis Keyes ethanol plant near Modesto. To date, 49 dairies have signed agreements with Aemetis Biogas to supply waste to existing and planned dairy digesters in the Aemetis Biogas Central Dairy Project.
The buildout of the dairy digesters and other facilities in the Aemetis Biogas project has been funded by $50 million of USDA guaranteed loans with 20-year repayment terms under the Rural Energy for America Program (REAP). An additional $75 million of USDA guaranteed loans are currently in process.
Prior to the additional dairy digester started today, Aemetis generated biogas from nine anaerobic digesters fed by ten dairies with a production capacity of approximately 300,000 MMBtu per year of RNG. After upcoming completion of three new digesters processing waste from six additional dairies, Aemetis expects to produce approximately 550,000 MMBtu of RNG per year from 12 digesters processing waste from 16 dairies.
When fully operational, the dairies in the Aemetis Biogas Central Dairy Project are expected to produce more than 1.6 million MMBtu per year of RNG and generate annual revenues of $250 million.
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 a 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 is developing the sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in California 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
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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
