Aemetis Receives Environmental Approval for 24-mile Pipeline Extension to Transport Biogas from Dairy Digesters to RNG Production Facility

Rhea-AI Summary

Aemetis, Inc. (NASDAQ: AMTX) received approval to extend its dairy biogas pipeline by 24 miles, adding 21 additional dairies to the Aemetis Biogas project in Stanislaus and Merced Counties. The company has already constructed 36 miles of the pipeline and is investing over $300 million in California's Central Valley. Aemetis plans to increase its renewable natural gas production to more than 1.65 million MMBtu per year, reducing greenhouse gas emissions equivalent to 6.8 million metric tons of carbon dioxide over ten years.

Positive

• Approval to extend biogas pipeline
• Investment of over $300 million in California's Central Valley
• Plans to increase renewable natural gas production

Negative

• None.

Aemetis plans to extend its dairy biogas pipeline to 60 miles; 36 miles has already been constructed

CUPERTINO, CA, Nov. 29, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire - Aemetis, Inc. (NASDAQ: AMTX) announced today that the Stanislaus County Board of Supervisors, upon a 4 to 0 vote, approved the California Environmental Quality Act (CEQA) analysis for Aemetis Biogas LLC to extend its biogas pipeline by an additional 24 miles using the public right of way. 

The pipeline transports biogas from dairy digesters to a centralized renewable natural gas (RNG) upgrading facility located at the Aemetis Keyes biofuels plant. The pipeline extension will enable Aemetis to add 21 additional dairies to the Aemetis Biogas project in Stanislaus and Merced Counties.  As the biogas pipeline is being built, encroachment permits are expected to be obtained for each section using detailed engineering designs and relying on the County’s CEQA environmental approval.

Aemetis has already installed 36 miles of biogas pipeline, and with the additional 24 miles of pipeline, the company has CEQA approval for a total of 60 miles of public right of way for a biogas gathering pipeline that will collect biogas from an aggregate of 38 dairies. 

The Aemetis Biogas pipeline project, including dairy digesters, collection pipeline, centralized biogas upgrading facility, RNG fueling station, and PG&E gas pipeline interconnection, is investing more than $300 million in California’s Central Valley. The dairy biogas project generates additional tax revenues and new jobs for a wide variety of businesses in agricultural areas, many of which are underserved communities.

“With 36 miles of biogas pipeline already built, seven operating dairy digesters, and biogas digesters under construction for ten more dairies, this new approval for 24 miles of biogas pipeline serving an additional 21 dairies is another significant milestone for the Aemetis Biogas dairy RNG project,” said Eric McAfee, Chairman and CEO of Aemetis.  “The capture of methane at dairies and conversion into below zero carbon intensity renewable fuel to replace diesel for heavy trucks provides immediate benefits, improving regional air quality, reducing methane and carbon emissions, and providing a lower cost renewable fuel for heavy trucking.”

Aemetis plans to increase its renewable natural gas production to more than 1.65 million MMBtu per year of negative carbon intensity transportation fuel, sourced from dairy digesters located in the San Joaquin Valley, a region cited by the US EPA as having some of the nation’s worst air quality. 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.

Aemetis has received permits, completed engineering, fabricated equipment, and is now installing an RNG fueling station at the Keyes ethanol plant to fuel trucks with locally produced renewable natural gas that provides a 90% reduction in emissions compared to petroleum diesel fuel, at a significantly lower cost than diesel.

The Aemetis Biogas dairy RNG project, energy efficiency upgrades to the Aemetis Keyes biofuels plant, and the Aemetis Sustainable Aviation Fuel and Renewable Diesel project include $57 million of grant funding and other support from the California Air Resources Board, the US Department of Agriculture, the US Forest Service, the California Energy Commission, the California Department of Food and Agriculture, CAEATFA, the San Joaquin Valley Air Pollution Control District, and Pacific Gas and Electric’s energy efficiency program.

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 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 distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic 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 RNG project, the SAF and renewable diesel plant, and the carbon capture and sequestration wells, as well as our ability to qualify for the receipt and transferability of tax credits under the Inflation Reduction Act, 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.

External Investor Relations                                                           
Contact:                                                                                                                   
Kirin Smith                                                                                                                       
PCG Advisory Group                                                                                                    
(646) 863-6519                                                                                                          
ksmith@pcgadvisory.com                                                                            

Company Investor Relations/
Media Contact:
Todd Waltz
Aemetis, Inc.
(408) 213-0940
investors@aemetis.com

FAQ

What is the latest announcement from Aemetis, Inc. (NASDAQ: AMTX)?

Aemetis received approval to extend its dairy biogas pipeline by 24 miles, adding 21 additional dairies to the Aemetis Biogas project in Stanislaus and Merced Counties.

How much is Aemetis investing in California's Central Valley?

Aemetis is investing over $300 million in California's Central Valley.

What are Aemetis' plans for renewable natural gas production?

Aemetis plans to increase its renewable natural gas production to more than 1.65 million MMBtu per year.

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

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.