Aemetis CEO Meets with White House, Congress, and Agencies Regarding Support for Domestic Energy and Rural Communities in Budget Bill
- Potential extension of Section 45Z production tax credits from 2027 to 2031
- Expansion from 12 to 16 dairy operations this summer, with agreements for 50 dairies total
- Expected $32 million increase in annual cash flow from Keyes ethanol plant starting 2026
- Secured Authority To Construct permits for 78 million gallon/year sustainable aviation fuel plant
- Heavy dependence on government policy and tax credits for business model
- Significant capital expenditure required for multiple expansion projects
Insights
Aemetis lobbying for Section 45Z tax credit extension would significantly enhance long-term revenue visibility and project economics if successful.
The CEO's advocacy efforts for the Section 45Z production tax credits represent a strategic push to enhance Aemetis' long-term business model. The potential extension of credits from 2027 to 2031 would provide critical revenue certainty for projects currently in development. The elimination of the indirect land use penalty for ethanol would specifically improve the carbon intensity scoring for Aemetis' biofuel operations, potentially increasing credit values.
Requiring domestic feedstocks aligns perfectly with Aemetis' existing business model, which already utilizes local dairy waste and agricultural feedstocks. This requirement would create a competitive advantage against potential imports while strengthening relationships with the 50 dairies already under contract.
The press release strategically frames these advocacy efforts as supporting rural communities and domestic energy security—politically appealing arguments that transcend partisan divides. This messaging increases the likelihood of bipartisan support for the provisions most critical to Aemetis' operational model.
The accelerated deployment of dairy digesters (moving from 12 to 16 operational sites) demonstrates Aemetis' commitment to rapidly scaling their RNG business to maximize production tax credits, which are volume-based. By highlighting projects already under construction, the company signals to stakeholders that they're positioned to immediately capitalize on any favorable policy changes.
Section 45Z extension would transform Aemetis' financial outlook by securing predictable tax credit revenue through 2031, significantly enhancing project economics.
The potential four-year extension of Section 45Z credits represents substantial financial upside for Aemetis' expansion projects. These production tax credits are particularly valuable because they're directly tied to production volume, creating a scalable revenue stream that grows alongside operational capacity. For investors, this provides much greater revenue visibility and reduced policy risk through 2031 instead of 2027.
The company's biogas expansion plans to 50 dairies from the current 12 would see dramatically improved returns with an extended credit timeline. The transferability of these credits is also crucial—allowing Aemetis to monetize them regardless of their tax liability position, effectively functioning as direct payments for production.
The mechanical vapor recompression system at the Keyes plant, projected to generate
The intense advocacy efforts ("more than ten visits to Washington") signal management's recognition that securing these credits is perhaps the single most important factor in their near-term financial performance. The direct correlation between production volumes and credit value creates a straightforward growth equation for Aemetis: more production equals more tax credits, which translates to improved project economics and accelerated deployment.
CUPERTINO, Calif., June 12, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company, announced today that its Chairman and CEO, Eric McAfee, has held meetings regarding support for domestic energy and rural communities in the federal tax bill with members of the Senate and House of Representatives, and with officials at the U.S. Department of Agriculture, Department of Energy, Treasury Department, and the White House National Economic Council. The meetings included a one hour presentation on transferable tax credits and the benefits of Section 45Z production tax credits to the Chief of Staff and biofuels policy staff of the Congressional Joint Committee on Taxation.
“The One Big Beautiful Bill Act is a generational opportunity to support domestic energy and rural communities through Section 45Z production tax credits for biofuels and biogas,” Mr. McAfee stated. “This year, we have travelled to Washington D.C. more than ten times to meet with the White House, Senate and House, as well as to present to agencies related to biofuels and biogas to communicate the important role of 45Z in the expansion of American energy and the importance of funding to farmers and rural communities through higher value crops.”
The 45Z production tax credit (PTC) was established in 2022 and went into effect in January 2025. If enacted, the federal tax and spending bill version passed by the House would modify the Section 45Z PTC to extend the credit availability by four years from 2027 to 2031, require the use of domestic feedstocks, and eliminate the indirect land use penalty for ethanol and other biofuels.
The value of the Section 45Z production tax credits earned by Aemetis is directly correlated with the quantity of biofuels and biogas produced. From 12 dairies currently operating, Aemetis Biogas is rapidly scaling up the construction of dairy digesters to produce renewable natural gas (RNG) using feedstock from 50 dairies that have already entered agreements with Aemetis Biogas. This summer, 16 dairies are scheduled to be operating in the Aemetis Biogas Central Digester Project near Modesto, California, with 36 miles of biogas pipeline and a central biogas-to-RNG production facility already in operation delivering RNG into the PG&E utility gas pipeline.
Aemetis renewable energy and energy efficiency projects include the expansion of dairy renewable natural gas production 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
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 Section 45Z for Aemetis (AMTX) operations?
How many dairy digesters does Aemetis (AMTX) currently operate?
What is the expected annual cash flow increase from Aemetis' Keyes ethanol plant upgrade?
What is the capacity of Aemetis' planned sustainable aviation fuel and renewable diesel plant?
How much renewable natural gas does Aemetis plan to produce annually?
