CUPERTINO, CA - January 23, 2025 (NEWMEDIAWIRE) - Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company, today provided an update on the impact of various federal policies in the United States and operations at the Aemetis biodiesel plant in India.
On January 20, 2025, President Trump declared a “National Energy Emergency” via executive order that requires the EPA to consider the use of emergency fuel waivers to allow year-round sale of gasoline containing 15% ethanol, referred to as “E15.” Aemetis is the largest ethanol producer in California. An annual increase in demand for ethanol should bolster ethanol blending into gasoline and significantly reduce ethanol inventories nationwide.
President Trump also issued the “Unleashing American Energy” executive order which directs all federal agencies to expand the development of domestic energy sources, specifically listing biofuels as a category of domestic energy to be supported by a wide range of federal efforts.
The President, in a separate Executive Order, established a process for the review of pending policies and regulations before final adoption, including the Section 45Z Clean Fuel Tax Credit that applies to renewable natural gas (RNG) and ethanol production starting on January 1, 2025, under which the Office of Management & Budget will review and approve policies before implementation. The stated time frame for this policy review is 60 days, though actual policy adoption can be earlier or later. Aemetis plans to submit 45Z-related comments to the IRS for consideration during the expedited review process to confirm the calculation of 45Z tax credits as a part of the planned sales of Section 45Z tax credits generated by Aemetis Biogas and Aemetis ethanol operations.
Aemetis has raised $50 million through USDA Rural Energy for America Program (REAP) loan guarantees and expects to close on its next $25 million REAP loan in the coming months, with additional applications already in the review process. Aemetis expects to construct 10 new dairy digester projects in 2025.
In the fourth quarter of 2024, the California Air Resources Board (CARB) notified Aemetis that seven dairy digester Provisional Pathway applications are “deemed complete” and were moved to the final verification process, which is expected to be completed this month. Aemetis expects CARB approval of these seven pathways by the end of Q1 2025. This CARB approval is expected to increase LCFS credits generated from these seven digesters by more than 80%, with the increased revenues and cash expected to be recognized in April 2025 and quarterly thereafter. CARB’s November 2024 approval of the 20-year LCFS extension includes a shorter Tier 1 approval process for future Aemetis pathway applications, including the five dairy digesters commissioned by Aemetis Biogas in 2024, with an expected nine to twelve month approval period.
In India, the Kakinada biodiesel plant owned and operated by Aemetis’ subsidiary Universal Biofuels Private Limited (UBPL) was contacted by local officials in mid-December 2024 regarding complaints by local residents of odors in the industrial area where the plant is located. Aemetis had produced about two months of biodiesel inventory and voluntarily agreed to halt production to investigate odors. However, after ceasing operations for one month, odors in the area persisted, likely related to edible oil fractionation facilities in the same area. On January 19, 2025, an official notice was received by UBPL requesting that the plant cease production until a review is completed, despite having already done so a month earlier. A resolution of the official order is being arranged with local officials. As the plant has two months of biodiesel product available for delivery to customers, the temporary cessation of production is not expected to impact the revenues under the current OMC allocation.
Aemetis, through its UBPL subsidiary, built the Kakinada plant in 2008 and has operated the plant for more than 15 years, creating more than 100 direct jobs related to the plant and hundreds of jobs indirectly to support biodiesel plant operations. UBPL has extensive experience in dealing with local regulatory and government officials, and while it is not uncommon for officials to issue orders after the fact in response to local activists, production is expected to resume soon and expected deliveries under OMC allocations can be made from inventory on hand. Further, Aemetis has implemented an expansion of the Kakinada plant that increased annual production capacity from 60 million gallons per year to 80 million gallons per year.
Universal Biofuels has identified a highly qualified candidate to be Chief Financial Officer and is working on a potential IPO of the business in India later this year. The local compliance notices are considered to be in the ordinary course of business for oil refineries, renewable fuels plants, and other processing plants in India and are not expected to have an impact on the IPO process.
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 an 80 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 acquired the 125-acre former Army Ammunition Production Plant site in Riverbank, California to develop a carbon sequestration project and a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery 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 2025 and future years; statements relating to the development, engineering, financing, construction and operation of the Aemetis ethanol, biogas, biodiesel, SAF and renewable diesel, and carbon sequestration facilities; and our ability to promote, develop, finance, 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.
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Company Investor Relations/
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