Aemetis Biogas Awarded $7.8 Million in CDFA Grants for Phase 2 RNG Dairy Digester Project

Rhea-AI Summary

Aemetis, Inc. (NASDAQ: AMTX) announced that its subsidiary, Aemetis Biogas LLC, received $7.8 million in grants from the California Department of Food and Agriculture's DDRDP, equating to nearly 50% of the total funds awarded. This funding supports the installation of dairy digesters to produce renewable natural gas, expected to eliminate 2.6 million metric tons of CO2 and generate over 100 jobs. The company plans to accelerate the construction of 16 additional digesters and a biogas facility, aiming for RNG injection into PG&E’s pipeline by Q1 2021.

Positive

• Awarded $7.8 million in grants, representing 50% of total DDRDP funding.
• Project expected to eliminate 2.6 million metric tons of CO2 annually.
• Anticipated creation of over 100 jobs in California's Central Valley.
• Plans to accelerate construction of 16 additional digesters by mid-2022.

Negative

• None.

CUPERTINO, CA, Nov. 20, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis, Inc. (NASDAQ: AMTX) announced today that its wholly-owned subsidiary, Aemetis Biogas LLC, has been awarded $7.8 million in matching grants through the 2020 California Department of Food and Agriculture (CDFA) Dairy Digester Research and Development Program (DDRDP).  Aemetis Biogas was awarded approximately 50% of the total projects awarded in the 2020 DDRDP grant cycle.  The DDRDP provides financial assistance for the installation of dairy digesters in California, which will result in reduced greenhouse gas emissions through the production of renewable natural gas (RNG) for transportation fuel.  Aemetis was previously awarded $3.1 million through the 2018 DDRDP grant cycle, and successfully completed two digesters and four miles of private pipeline as phase one of its 18 dairy digester cluster.

“We’re grateful to the CDFA for their strong demonstration of confidence in our 18 dairy RNG dairy digester project,” said Eric McAfee, Chairman and CEO of Aemetis. “After completing phase one of our project in just over one year, we’re poised to quickly accelerate the construction and operation of 16 additional digesters and 25 miles of private pipeline by mid-2022.  The combined project will annually displace approximately 6.9 million gallons of petroleum-based diesel fuel, eliminate approximately 2.6 million metric tons of CO2 equivalents, and create over 100 project related jobs in California’s Central Valley,” added McAfee.

In December 2020, Aemetis will begin construction of its biogas upgrading facility that will allow the company to inject RNG into PG&E’s natural gas pipeline by the end of the first quarter of 2021.  The company expects to offer truck fleet fueling of R-CNG at the Aemetis Advanced Fuels Keyes ethanol biorefinery in the second quarter of 2021.  For more information about the CDFA DDRDP, go to https://www.cdfa.ca.gov/oefi/ddrdp/.

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 the purpose of Aemetis's biogas project?

The biogas project aims to install dairy digesters to produce renewable natural gas (RNG) and reduce greenhouse gas emissions.

How much grant funding did Aemetis receive for its biogas project?

Aemetis received $7.8 million in matching grants from the California Department of Food and Agriculture.

When will Aemetis begin construction of its biogas upgrading facility?

Construction of the biogas upgrading facility is set to begin in December 2020.

What are the expected environmental benefits of the Aemetis biogas project?

The project is expected to displace about 6.9 million gallons of petroleum-based diesel fuel and eliminate approximately 2.6 million metric tons of CO2 equivalents annually.

When does Aemetis plan to inject renewable natural gas into the pipeline?

Aemetis expects to start injecting RNG into PG&E’s natural gas pipeline by the end of Q1 2021.