Aemetis Begins Production of Below Zero Carbon Intensity Dairy Biogas

Rhea-AI Summary

Aemetis, Inc. (NASDAQ: AMTX) has initiated production of dairy biogas from two dairies as part of a larger 17-dairy biogas project. This below-zero carbon intensity gas is being used for ethanol production at the Aemetis facility in California. The company plans to scale up its operations, adding 15 more digesters and related infrastructure. The funding plan for this project includes over $65 million in preferred equity and grants. This initiative provides a new revenue stream for local dairies and meets California's methane emission reduction goals.

Positive

• Production of dairy biogas has commenced from two dairies, enhancing renewable energy output.
• Plans to scale up operations with an additional 15 digesters to meet increasing demand for Renewable Natural Gas (RNG).
• Project funding of over $65 million secured without incurring debt, ensuring financial stability.

Negative

• None.

First Two Dairies and Private Pipeline Operating; Below Zero Carbon Intensity Gas Now Producing Transportation Fuel

CUPERTINO, CA, Oct. 23, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis, Inc. (NASDAQ: AMTX) announced today that it is producing dairy biogas from the first two dairies in a 17 dairy digester biogas project.  The below-zero carbon intensity gas is initially being utilized for the production of fuel ethanol at the Aemetis Advanced Fuels Keyes facility in Keyes, California.  Aemetis also produces high-grade sanitizer alcohol and various feed products at its Keyes facility.

“In just over one year, Aemetis Biogas has built and commissioned two dairy digesters and four miles of private pipeline that is now producing below-zero carbon intensity biogas used in the production of transportation fuel,” said Eric McAfee, Chairman and CEO of Aemetis. “We are pleased with the rapid scale-up of our dairy methane to renewable natural gas (RNG) project and rapid progress toward producing large volumes of RNG for transportation fuel.  With the addition of 15 more dairy digesters, gas upgrading, utility interconnection, and dispensing RNG to truck fleets, Aemetis is well positioned to capitalize on the large below-zero carbon transportation market,” added McAfee.  “This project provides value to local dairies by creating a new revenue stream while meeting new California requirements for a significant reduction in methane emissions from dairies.”

In December 2020, the Company plans to begin construction of a gas upgrading system that will convert dairy biogas to renewable natural gas for injection into the PG&E pipeline or utilization as Renewable CNG at the company’s onsite renewable compressed natural gas (R-CNG) fueling station.  During 2021, the company plans to continue development of the next fifteen dairy digesters and related pipeline in the 17 dairy digester RNG cluster located near the Aemetis Keyes plant. The project funding plan has no debt and more than $65 million of preferred equity investment and grants.

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto. Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe.  Aemetis is building a biogas anaerobic digester network and pipeline to convert dairy animal waste gas to Renewable Natural Gas (RNG) and is developing a plant to convert waste orchard wood into cellulosic ethanol.  Aemetis holds a portfolio of patents and related technology licenses for the production of 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 our 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 construction and operation of the dairy digester and pipeline project in Central California,  and the ability to access markets and funding to execute our biogas business plan. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue”, “enable” 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 (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2019, 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

FAQ

What is Aemetis Inc.'s recent announcement regarding dairy biogas?

Aemetis announced it has started producing dairy biogas from two dairies, part of a 17-dairy project for renewable natural gas.

How much funding has Aemetis secured for its biogas project?

Aemetis has secured over $65 million in preferred equity investment and grants for its biogas project.

What are the environmental benefits of Aemetis's dairy biogas project?

The project aims to produce below-zero carbon intensity gas and helps reduce methane emissions from dairies in California.

What is the future plan for Aemetis's dairy biogas project?

Aemetis plans to construct more digesters and complete a gas upgrading system for renewable natural gas production.

What is the significance of Aemetis being publicly traded on NASDAQ?

Being listed on NASDAQ allows Aemetis to access capital markets for funding and increases visibility among investors.