Aemetis Inc., a renewable natural gas (RNG) and renewable fuels company, announced today that its subsidiary Aemetis Biogas has started production of RNG from its 10th anaerobic digester, located in Stanislaus County, California. This new digester, which processes waste from a local dairy, is part of a larger expansion plan that will see the addition of five more digesters, bringing the total number of operational digesters to 12, processing waste from 16 dairies.
In total, Aemetis Biogas aims to produce 550,000 MMBtu of RNG per year by 2025, marking an 80% increase from its current production capacity of 300,000 MMBtu annually.
The company also expects to generate approximately $11.5 million in investment tax credits this month, stemming from the construction of the new dairy digesters and other projects. The recently completed digester and those under construction are expected to generate an additional $10 million in investment tax credits, which Aemetis plans to sell in the first quarter of 2025, under the Inflation Reduction Act.
In addition, Aemetis is nearing the final verification process for California Air Resources Board (CARB) pathway approval for seven of its existing dairy digesters under the state’s Low Carbon Fuel Standard (LCFS). The dairy biogas pathways are expected to average a carbon intensity of -380, a significant improvement over the current temporary LCFS pathway of -150. This approval is expected to result in a 100% increase in LCFS credit revenues for Aemetis. CARB’s final approval of these pathways is anticipated in the first half of 2025.
Aemetis’ RNG production will also benefit from California’s recently adopted air emissions mandates, which include 20 years of avoided methane credits under the LCFS.
“Aemetis Biogas is on track to increase RNG production by 80%, driven by the new digesters now in operation and those nearing completion,” said Eric McAfee, Chairman and CEO of Aemetis. “We are pleased with the rapid growth of our revenue streams from LCFS credits and Renewable Fuel Standard D3 RINs.”
The Aemetis Biogas digesters are connected to the company’s existing 36-mile biogas pipeline, which feeds into its central RNG production facility located at the Aemetis Keyes ethanol plant near Modesto. To date, 49 dairies have signed agreements to supply waste to Aemetis’ digesters under the Aemetis Biogas Central Dairy Project.
The development of these digesters has been supported by $50 million in USDA-guaranteed loans under the Rural Energy for America Program (REAP), with an additional $75 million in loans currently in process.
Once fully operational, the Aemetis Biogas Central Dairy Project is expected to produce more than 1.6 million MMBtu of RNG annually and generate approximately $250 million in annual revenue.
