Aemetis Biogas Receives CARB Approval for Seven RNG Pathways

Rhea-AI Summary

Aemetis (NASDAQ: AMTX) has received California Air Resources Board (CARB) approval for seven dairy digester provisional pathways under the Low Carbon Fuel Standard (LCFS). The approved pathways, effective from January 1, 2025, demonstrate an impressive average carbon intensity of -384, ranging from -327 to -419.

The approval is expected to increase LCFS credit generation by approximately 100% for these digesters. With eleven operating digesters and a four-dairy cluster digester under completion, Aemetis anticipates faster approval for additional pathway filings following LCFS regulatory amendments this year.

The company's renewable energy projects include new dairy digesters targeting over 1 million MMBtu per year of renewable natural gas production, and a sustainable aviation fuel plant with 78 million gallon annual capacity.

Positive

• CARB approval enables immediate 100% increase in LCFS credit generation
• Highly favorable carbon intensity scores ranging from -327 to -419
• Keyes ethanol plant upgrades expected to generate $32 million additional annual cash flow from 2026
• Significant renewable energy project pipeline including 78M gallon sustainable aviation fuel plant

Negative

• None.

Insights

Renewable Energy Analyst

Aemetis secures major regulatory win with CARB approvals, doubling LCFS credits for seven digesters with exceptionally negative carbon intensity ratings.

Aemetis has secured a significant regulatory milestone with the California Air Resources Board (CARB) approving seven provisional pathways for its dairy digesters under the Low Carbon Fuel Standard (LCFS). The approved pathways boast an impressive average carbon intensity of -384%, with individual ratings ranging from -327% to -419%.

These approvals are especially valuable because they're retroactively effective from January 1, 2025, allowing Aemetis to immediately claim enhanced credits for Q1 2025 production before the June 30 reporting deadline. The company expects approximately 100% increase in LCFS credits generated by these digesters, which translates directly to revenue growth.

The negative carbon intensity scores are particularly noteworthy as they indicate these projects remove more carbon from the atmosphere than they emit. In California's LCFS market, more negative scores generate more valuable credits. With eleven operating digesters and another four-dairy cluster digester under construction, Aemetis is positioning for additional pathway approvals once LCFS regulatory amendments are adopted this year.

This approval strengthens Aemetis' renewable natural gas segment, which complements their broader renewable energy portfolio including their ethanol plant efficiency upgrades (expected to generate $32 million increased annual cash flow starting in 2026), carbon sequestration project (1.4 million tons CO₂ annually), and the 78 million gallon sustainable aviation fuel plant that has secured crucial permits. These diversified renewable energy projects demonstrate Aemetis' comprehensive approach to capitalizing on decarbonization incentives.

Dairy Based Renewable Natural Gas from Seven Digesters Averages Negative 384 Carbon Intensity

CUPERTINO, Calif., June 27, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas (RNG) and renewable fuels company, announced today that the California Air Resources Board (CARB) has approved provisional pathways under the Low Carbon Fuel Standard (LCFS) for seven dairy digesters built and operated by Aemetis Biogas, a subsidiary of the Company. The pathway approvals are effective as of January 1, 2025. The average carbon intensity for the seven approved pathways is -384, with carbon intensities ranging from -327 to -419.

“The approval of seven LCFS pathways increases the number of LCFS credits generated by these digesters by approximately 100%,” stated Eric McAfee, Chairman and CEO of Aemetis. “With eleven operating digesters and a four-dairy cluster digester currently being completed, we have additional pathway filings in process that we expect will be approved more quickly than these initial pathways once the LCFS regulatory amendments are adopted this year.”

With the LCFS first quarter reporting deadline of June 30, 2025, the January 1, 2025, effective date of the new pathways enables Aemetis to immediately obtain the increased LCFS credit quantity for its RNG produced in the first quarter of 2025.

Aemetis renewable energy and energy efficiency projects include the construction of new dairy digesters expected to generate more than 1 million MMBtu per year of renewable natural gas; the Keyes ethanol plant mechanical vapor recompression system that is expected to generate $32 million of increased annual cash flow starting in 2026; the Riverbank carbon sequestration project to inject 1.4 million tons per year of CO2 per year underground; and the 78 million gallon per year sustainable aviation fuel and renewable diesel plant that has already received Authority To Construct air permits and other key approvals.

About Aemetis

Headquartered in Cupertino, California, Aemetis is a renewable natural gas and renewable fuel company focused on the operation, acquisition, development, and commercialization of innovative technologies that replace petroleum 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. Aemetis is developing a sustainable aviation fuel and renewable diesel fuel biorefinery in California that will use renewable hydrogen and hydroelectric power 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, SAF and renewable diesel, and carbon sequestration facilities; our ability to promote, develop, finance, and construct facilities to produce biogas, renewable fuels, and biochemicals; and statements about future market prices and results of government actions. 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.

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

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

FAQ

What is the significance of AMTX receiving CARB approval for seven RNG pathways?

The approval allows Aemetis to double its LCFS credit generation from these digesters, significantly increasing potential revenue. The pathways have an impressive average carbon intensity of -384.

How many dairy digesters does Aemetis currently operate?

Aemetis currently operates eleven digesters, with an additional four-dairy cluster digester under completion.

What is the expected renewable natural gas production capacity of Aemetis new dairy digesters?

The new dairy digesters are expected to generate more than 1 million MMBtu per year of renewable natural gas.

When will the Keyes ethanol plant upgrades begin generating additional cash flow for AMTX?

The Keyes ethanol plant mechanical vapor recompression system is expected to generate $32 million of increased annual cash flow starting in 2026.

What is the production capacity of Aemetis planned sustainable aviation fuel plant?

The sustainable aviation fuel and renewable diesel plant has a planned capacity of 78 million gallons per year and has already received key approvals including Authority To Construct air permits.