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California Can Reduce Gasoline Prices by Adopting E-15 Ethanol Blend

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Aemetis, Inc. (Nasdaq: AMTX) is urging the California Air Resources Board (CARB) to implement a 15% ethanol blend in gasoline to reduce prices and greenhouse gas emissions. California is the only state not adopting E-15, which was approved by the EPA in 2011. A study by UC Berkeley and US Naval Academy economists suggests E-15 could save California drivers $2.7 billion annually, or about $0.20 per gallon.

Adopting E-15 would have immediate environmental benefits, as ethanol emits 46% fewer air pollutants than gasoline. It supports California's climate action plans, including reducing fossil fuel dependence and promoting renewable energy. CARB can adopt new rules to allow E-15 sales in California as soon as 2025.

Aemetis, Inc. (Nasdaq: AMTX) sta sollecitando il California Air Resources Board (CARB) ad implementare un mix di etanolo al 15% nella benzina per ridurre i prezzi e le emissioni di gas serra. La California è l'unico stato a non adottare l'E-15, approvato dalla EPA nel 2011. Uno studio degli economisti dell'UC Berkeley e dell'US Naval Academy suggerisce che l'E-15 potrebbe far risparmiare ai conducenti californiani $2,7 miliardi all'anno, ovvero circa $0,20 per gallone.

L'adozione dell'E-15 avrebbe benefici ambientali immediati, poiché l'etanolo emette il 46% in meno di inquinanti atmosferici rispetto alla benzina. Questo sostiene i piani di azione climatica della California, compresa la riduzione della dipendenza dai combustibili fossili e la promozione delle energie rinnovabili. Il CARB può adottare nuove normative per consentire le vendite di E-15 in California già dal 2025.

Aemetis, Inc. (Nasdaq: AMTX) está instando a la Junta de Recursos del Aire de California (CARB) a implementar una mezcla de etanol del 15% en la gasolina para reducir precios y emisiones de gases de efecto invernadero. California es el único estado que no adopta E-15, que fue aprobado por la EPA en 2011. Un estudio de economistas de UC Berkeley y de la Academia Naval de EE. UU. sugiere que E-15 podría ahorrar a los conductores californianos $2.7 mil millones anuales, o aproximadamente $0.20 por galón.

La adopción de E-15 tendría beneficios ambientales inmediatos, ya que el etanol emite un 46% menos de contaminantes atmosféricos que la gasolina. Esto apoya los planes de acción climática de California, incluidas la reducción de la dependencia de los combustibles fósiles y la promoción de la energía renovable. El CARB puede adoptar nuevas reglas para permitir las ventas de E-15 en California tan pronto como en 2025.

Aemetis, Inc. (Nasdaq: AMTX)는 캘리포니아 공기 자원 위원회(CARB)에 가솔린에 15% 에탄올 혼합물을 도입하여 가격 인하 및 온실가스 배출을 줄일 것을 촉구하고 있습니다. 캘리포니아는 2011년 EPA의 승인을 받은 E-15를 채택하지 않은 유일한 주입니다. UC 버클리 및 미국 해군 아카데미의 경제학자들에 따르면 E-15는 캘리포니아 운전자들에게 연간 27억 달러를 절약할 수 있을 것으로 보입니다, 즉 갤런당 약 $0.20입니다.

E-15를 도입하면 즉각적인 환경적 이점이 있으며, 에탄올은 가솔린보다 46% 적은 대기 오염 물질을 배출합니다. 이는 화석 연료 의존도 감소 및 재생 가능 에너지 증진을 포함한 캘리포니아의 기후 행동 계획을 지원합니다. CARB는 2025년까지 캘리포니아에서 E-15 판매를 허용하는 새로운 규정을 도입할 수 있습니다.

Aemetis, Inc. (Nasdaq: AMTX) exhorte le California Air Resources Board (CARB) à mettre en œuvre un mélange d'éthanol de 15% dans l'essence afin de réduire les prix et les émissions de gaz à effet de serre. La Californie est le seul état à ne pas adopter l'E-15, qui a été approuvé par l'EPA en 2011. Une étude des économistes de l'UC Berkeley et de l'Académie navale des États-Unis suggère que l'E-15 pourrait faire économiser aux conducteurs californiens 2,7 milliards de dollars par an, soit environ 0,20 $ par gallon.

Adopter l'E-15 aurait des avantages environnementaux immédiats, car l'éthanol émet 46% de polluants atmosphériques en moins que l'essence. Cela soutient les plans d'action climatique de la Californie, y compris la réduction de la dépendance aux combustibles fossiles et la promotion des énergies renouvelables. Le CARB peut adopter de nouvelles règles pour permettre la vente d'E-15 en Californie dès 2025.

Aemetis, Inc. (Nasdaq: AMTX) fordert die California Air Resources Board (CARB) auf, eine 15% Ethanolmischung im Benzin einzuführen, um die Preise zu senken und die Treibhausgasemissionen zu reduzieren. Kalifornien ist der einzige Bundesstaat, der E-15 nicht angenommen hat, obwohl es 2011 von der EPA genehmigt wurde. Eine Studie von Ökonomen der UC Berkeley und der US Naval Academy legt nahe, dass E-15 den kalifornischen Fahrern 2,7 Milliarden Dollar jährlich einsparen könnte, was etwa 0,20 USD pro Gallone entspricht.

Die Einführung von E-15 hätte unmittelbare umweltfreundliche Vorteile, da Ethanol 46% weniger Luftschadstoffe als Benzin emittiert. Es unterstützt die Klimaschutzpläne Kaliforniens, einschließlich der Reduzierung der Abhängigkeit von fossilen Brennstoffen und der Förderung erneuerbarer Energien. Der CARB kann bereits 2025 neue Regeln zur Erlaubnis des Verkaufs von E-15 in Kalifornien einführen.

Positive
  • Potential for significant cost savings for California drivers ($2.7 billion annually)
  • Environmental benefits with 46% fewer air pollutants than gasoline
  • Supports California's climate action plans and goals
  • Possibility of quick implementation by 2025
Negative
  • None.

Insights

The call for California to adopt E15 ethanol blend is a significant development with potential far-reaching impacts. Implementing E15 could lead to an estimated $2.7 billion in annual savings for California drivers, translating to about $0.20 per gallon. This move aligns with California's ambitious climate goals, potentially reducing greenhouse gas emissions by 46% compared to gasoline.

However, there are challenges to consider. The transition may require infrastructure updates and could face resistance from the oil industry. The impact on older vehicles and small engines needs evaluation. While the environmental benefits are promising, the full lifecycle emissions of ethanol production should be scrutinized.

For investors, this presents opportunities in the ethanol and renewable fuel sectors, particularly for companies like Aemetis (AMTX). If implemented, it could significantly boost demand for ethanol in California, potentially driving up stock prices for ethanol producers. However, investors should also be cautious of potential regulatory hurdles and opposition that could delay or prevent implementation.

The proposed shift to E15 in California represents a complex environmental trade-off. While it promises immediate reductions in tailpipe emissions, including particulate matter and carbon monoxide, the full environmental impact is nuanced. Ethanol production can have significant land-use implications and may compete with food crops.

The 46% reduction in air pollutants is substantial, but we must consider the entire lifecycle of ethanol production. The net carbon benefit depends on production methods and feedstock sources. California's unique air quality challenges make this proposal particularly interesting, as it could help address both climate change and local air pollution.

From an investor's perspective, this move could accelerate the transition to cleaner fuels and create opportunities in the biofuel sector. However, it's important to assess the long-term sustainability of ethanol as a transition fuel, given the state's push towards electric vehicles and other zero-emission technologies. Companies that can demonstrate sustainable ethanol production methods may be better positioned for long-term success in this evolving regulatory landscape.

CUPERTINO, CA, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Aemetis, Inc. (Nasdaq: AMTX), a California renewable fuels producer, today called for the California Air Resources Board (CARB) to immediately implement a 15% ethanol blend in gasoline to reduce gas prices for California consumers and reduce greenhouse gas emissions (GHG) from motor vehicles.  California stands alone among the 50 states in not adopting a 15% blend of fuel ethanol.  The US EPA approved E-15 for use in light duty vehicles in 2011, and 49 other states have adopted a 15% ethanol blend. California still mandates a 90% petroleum blend in every gallon of gasoline.

In response to Governor Newsom calling a special session of the state legislature, the State Assembly is currently holding hearings regarding the need for lower fuel prices in California. An obvious solution is to allow consumers to purchase lower cost, cleaner burning, domestically produced renewable fuel instead of mandating higher cost, polluting imported petroleum fuel.

A recent study by UC Berkeley and US Naval Academy economists found that allowing an E-15 blend could save California drivers $2.7 billion at the pump annually, which translates into approximately $0.20 per gallon every time a motorist fuels their car.

A typical California household would save about $200 per year on gasoline expenses, and for many lower income residents of the Golden State, that money could be spent on items like childcare, groceries, or prescription medications.

Moving to an E-15 blend would have an immediate impact on California’s environment as ethanol is derived from renewable sources and emits 46% fewer air pollutants than gasoline. According to the Environmental and Energy Study Institute, the US transportation sector accounts for 27 percent of US greenhouse gas emissions. Increasing California’s ethanol blend would reduce emissions and likely reduce gasoline usage in the state, while providing an immediate and measurable benefit to the state’s ambitious goal of reaching net carbon neutrality by the year 2045.

A study commissioned by CARB found that adopting E-15 in the state could cut emissions of tailpipe pollutants such as particulate matter and carbon monoxide, which cause air quality and human health problems.

“As the transition to EVs and other zero tailpipe emission vehicles take place over the next decade, California should adopt every tool available – today – to expedite the reduction of harmful fossil fuel emissions,” said Eric McAfee, Chairman and CEO of Aemetis, Inc.  “The most immediate cost-saving and environmentally beneficial step the state can take is the implementation of E-15,” added McAfee.

The adoption of E15 supports the broader goals outlined in California’s climate action plans, which include reducing dependence on fossil fuels, decreasing air pollution, and promoting the use of renewable energy. By transitioning to E15, California can make substantial progress in achieving these goals.

The steps required to allow an E-15 blend in California have been conducted, including source testing and on-road testing.  Billions of miles have been driven on E-15 across the United States since 2011.  CARB can adopt new rules that will allow E-15 to be sold in California as soon as 2025.

“We applaud Governor Newsom’s focus on the chronic problem of high gas prices in California, and we urge the state legislature’s special session to call on CARB to implement E-15,” said McAfee.

About Aemetis

Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the operation, acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis is operating and actively 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 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 sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in California to utilize renewable hydrogen, hydroelectric power, and renewable oils to produce low carbon intensity renewable jet and diesel fuel. 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 include, without limitation, projections of financial results in 2024 and future years; statements relating to the development, engineering, financing, construction and operation of the Aemetis ethanol, biogas, SAF and renewable diesel, and carbon sequestration 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 Reports on Form 10-K, and in our other 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 (AMTX) proposing to reduce gasoline prices in California?

Aemetis (AMTX) is proposing the implementation of a 15% ethanol blend (E-15) in gasoline to reduce prices and greenhouse gas emissions in California.

How much could California drivers save annually by adopting E-15, according to the AMTX press release?

According to a study cited in the press release, California drivers could save $2.7 billion annually by adopting E-15, which translates to approximately $0.20 per gallon.

What are the environmental benefits of E-15 mentioned by Aemetis (AMTX)?

Aemetis (AMTX) states that E-15 emits 46% fewer air pollutants than gasoline and could help reduce emissions from the transportation sector, which accounts for 27% of US greenhouse gas emissions.

When could E-15 potentially be implemented in California, according to AMTX?

According to the press release, CARB can adopt new rules that will allow E-15 to be sold in California as soon as 2025.

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