Seven dairy digesters, 40-mile biogas pipeline, centralized Biogas-to-RNG facility, and utility pipeline interconnection are operating 24x7 to deliver RNG for the displacement of petroleum-based fuels in trucks, buses, and cars
CUPERTINO, CA, June 27, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas (RNG) and renewable fuels company focused on negative carbon intensity products, announced today that its Aemetis Biogas subsidiary is operating the Central Dairy Project production facilities 24 hours per day, seven days per week, and exceeded the RNG production plan by approximately 20% during Q2 2023.
“Production rates at our dairy digesters are notably higher than our original projections,” stated Andy Foster, President of Aemetis Biogas. “Our biogas pipeline, biogas-to-RNG production facility and utility gas pipeline interconnection are running smoothly, converting dairy biogas into valuable RNG delivered into the PG&E natural gas pipeline system.”
“The June 21st announcement by the federal EPA of the Renewable Volume Obligation for years 2023, 2024 and 2025 significantly increased the mandate for the D3 Renewable Identification Numbers (RINs) generated by RNG,” said Eric McAfee, Chairman and CEO of Aemetis, Inc. “Each MMBtu of dairy RNG generates 11.7 D3 RINs and the Aemetis Five Year Plan expects 1 million MMBtu in year 2025. The price of D3 RINs has already increased about 30% to $2.85 since the RVO was announced last week.”
In 2016, Governor Newsom signed into law Senate Bill 1383, limiting the emission of methane from dairy lagoons in California, which includes approximately 1.7 million dairy cows at more than 1,000 dairies. Aemetis Biogas was formed as a subsidiary of Aemetis, Inc. in 2018 to build a network of assets to capture methane from dairy lagoons, focused on the 80 dairies that are existing feed customers of the Aemetis ethanol plant and other local dairies that supply milk for cheese production and other products.
In January 2023, Aemetis Biogas completed and commissioned several digesters, a 40-mile biogas pipeline, a central biogas-to-RNG production facility and a PG&E gas pipeline interconnection unit. Currently, 37 dairy digesters are under development or under construction, and seven dairy digesters are fully operational.
Funding for Aemetis Biogas includes $30 million of financing from Third Eye Capital (Toronto, Canada); $23 million of grants from the California Department of Food & Ag and the CPUC grant program through PG&E; and planned funding of $100 million during 2022 and 2023 of 20-year, USDA-guaranteed loans under the Renewable Energy for America Program (REAP) as a part of ongoing annual funding of approximately $100 million per year from the REAP program during the buildout of 65 dairies in the next four years.
About Aemetis
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 dairy 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 has supplied about 80 dairies with animal feed. Aemetis also owns and operates a 50 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 sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil, refined tallow and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using renewable hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals. 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 in this news release include, without limitation, statements relating to the development, construction and operation of the Aemetis Biogas production facilities, expected greenhouse gas emission reductions from Aemetis projects, and our ability to finance, permit, 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.
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
