via NewMediaWire --
Aemetis, Inc. (NASDAQ:
AMTX), a renewable natural gas and renewable fuels company focused
on negative carbon intensity products, announced today the receipt
of $53 million of cash, after transaction costs and buyer discount,
from the sale of $63 million of Inflation Reduction Act (IRA)
investment tax credits generated by its subsidiary, Aemetis Biogas
LLC. The tax credits were sold to a corporate purchaser on
September 29, 2023, and the payment was received by Aemetis on
October 6, 2023.
The IRA was signed into law in August
2022, and provides transferable federal income tax credits for
investments in certain renewable fuel projects and products. The
IRA Section 48 investment tax credits were generated from biogas
projects constructed and brought in service by Aemetis prior to the
date of the tax credit sale agreement.
“The $53 million of cash proceeds
received by Aemetis achieves the goals of the Inflation Reduction
Act by funding methane capture using passive anaerobic biogas
digesters at dairies for conversion into RNG transportation fuel as
a replacement for petroleum diesel in trucks and other vehicles,”
stated Eric McAfee, Chairman and CEO of Aemetis. “In addition, the
repayment of high interest rate debt using these funds expands our
access to lower cost debt funding. The Aemetis Five Year Plan is
expected to qualify for more than $800 million of IRA investment
and production tax credits during the next four years to support
our biogas projects, CO2 re-use by our ethanol plant, the
construction of our sustainable aviation fuel plant and CO2
sequestration.”
The Aemetis ethanol production
facility supplies about two million pounds per day of animal feed
to more than 80 dairies to feed more than 100,000 dairy cows in the
local area. To capture methane at dairies and produce RNG, Aemetis
has completed and is operating seven dairy biogas digesters, 33
miles of biogas pipeline, a central biogas to RNG production
facility, and a PG&E utility gas pipeline interconnection unit.
An additional five digesters are under construction and a total of
37 dairies are under contract.
In addition to the $53 million
received from this sale of IRA tax credits, Aemetis invested $30
million of equity and has been awarded $23 million of grants for
the Aemetis Biogas Central Dairy Project. The total combined
equity, grants and IRA tax credit sales related to the Aemetis
Biogas project exceeds $100 million.
In October 2022 and July 2023, Aemetis
Biogas closed a total of $50 million of construction and long-term
debt financing for dairy digester construction based upon USDA
Renewable Energy for America Program (REAP) loan guarantee
commitments. An additional $150 million of 20-year,
USDA-guaranteed, REAP loan financing is in process, with planned
closings during 2023 and 2024.
Aemetis is also building its own 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.
Approximately 25% of methane emissions
in California are emitted from dairy waste lagoons. When fully
built, the Aemetis Biogas project plans to capture methane from the
waste produced by more than 150,000 cows at dairy farms in
California and produce 1,650,000 MMBtu of renewable natural gas
from captured dairy methane each year. 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.
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 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 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
RelationsContact:Kirin SmithPCG Advisory
Group(646) 863-6519ksmith@pcgadvisory.com
Company Investor Relations/Media
Contact:Todd Waltz(408) 213-0940investors@aemetis.com
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