CUPERTINO, CA, Jan 23, 2014 – (NewMediaWire) – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on negative carbon intensity products, announced today the recognition of revenues from its first sale of California Low Carbon Fuel Standard (LCFS) credits generated by its subsidiary, Aemetis Biogas LLC. The environmental credits were sold in a single transaction to a market maker and the sale price has been paid in full. Aemetis Biogas produces renewable natural gas (RNG) from dairy manure digesters located in California’s Central Valley.
The sale was completed for LCFS credits issued by the California Air Resources Board (CARB) using the negative 150 Carbon Intensity Temporary Pathway. For each dairy, Aemetis has completed testing and verification as well as submitted applications for Provisional Pathways to CARB at lower carbon intensity scores based on actual data from biogas production and dairy operations. The Provisional Pathway scores are expected to increase LCFS revenues by more than 80% for future LCFS credit sales after the Provisional Pathways are approved, compared to the number of LCFS credits issued under the Temporary Pathway. Producers utilize the Temporary Pathway while CARB is processing their pathway applications.
The LCFS program is a mechanism for companies that are obligated to comply with mandates to reduce carbon emissions in California by purchasing credits from biofuels producers. The program requires oil companies and other fuel blenders to provide LCFS credits for gallons of gasoline, diesel, and other petroleum products sold in California.
On March 21, 2024, CARB will hold a public hearing to review expanded LCFS credit mandates for a twenty-year period through year 2045. The staff recommendation setting forth the higher mandates stated an intention to provide stable policy and strong LCFS credit prices to attract long term funding to build production facilities for lower-emission, renewable fuels to replace petroleum fuels in California. Lower emission renewable fuels include renewable natural gas (RNG) from dairy methane that can replace diesel in trucks and buses, produce renewable electricity for electric vehicles, and produce hydrogen for forklifts, cars and trucks.
Aemetis Biogas has agreements with 37 dairies, operates digesters serving eight dairies, operates a central biogas-to-RNG production facility with utility gas pipeline interconnection, and has completed 36 miles of biogas pipeline with a total of 60 miles already permitted under CEQA.
“Aemetis Biogas is actively growing by constructing additional digesters with a goal of 18 operating dairy digesters by the end of this year,” stated Eric McAfee, Chairman and CEO of Aemetis. “The cash proceeds received by Aemetis Biogas from the sale of LCFS credits is a meaningful milestone that contributes to our further investments in capturing biomethane at dairies to improve local air quality, reduce the global warming effects of methane emissions, and replace fossil diesel fuel in trucks in California.”
In October 2022 and July 2023, Aemetis Biogas closed on a total of $50 million of construction and 20-year debt financing for dairy digester construction utilizing USDA Renewable Energy for America Program (REAP) loan guarantee commitments. An additional $100 million of 20-year, USDA-guaranteed, REAP loan financings are in process, with planned closings during 2024.
Aemetis is also building its own RNG fueling station at the company’s Keyes, California ethanol plant to fuel trucks with locally produced renewable natural gas that provides a 90% reduction in emissions compared to petroleum diesel fuel.
Approximately 25% of methane emissions in California are emitted from dairy waste lagoons. When fully built, Aemetis Biogas plans to capture methane from the waste produced by more than 150,000 cows at dairy farms in California and produce 1,600,000 MMBtu of renewable natural gas from captured dairy methane each year. The project is designed to reduce greenhouse gas emissions equivalent to an estimated 6.8 million metric tons of carbon dioxide over ten years, equal to removing the emissions from approximately 150,000 cars per year.
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis is 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 also owns and operates a 60 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 Carbon Zero sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries 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
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, statements relating to the development, construction and operation of the Aemetis Biogas RNG project, the SAF and renewable diesel plant, and the carbon capture and sequestration wells, as well as expected greenhouse gas emission reductions from the completed Aemetis Biogas RNG project, the development of biogas upgrading facilities, and our ability to promote, develop 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 Report on Form 10-K for the year ended December 31, 2022, and in our subsequent 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.
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