California Governor Newsom Signs AB30 Approving 15% Ethanol Blend that Increases Ethanol Market by more than 600 million Gallons Per Year
Rhea-AI Summary
Aemetis (NASDAQ: AMTX) announced that California Governor Gavin Newsom signed AB30 on October 3, 2025, immediately allowing E15 (15% ethanol) blending and expanding California's ethanol market by 50% (reported as more than 600 million gallons per year).
A UC Berkeley/Naval Academy study cited in the release estimates $2.7 billion/year in lower pump costs (about $0.20/gal). Aemetis operates a 65 million gallon/year ethanol plant in Keyes, CA. The company plans a $30 million mechanical vapor recompression (MVR) retrofit to cut natural gas use by 80%, increase LCFS revenues and 45Z tax credit income, and is projected to improve Keyes plant cash flow by $32 million/year after MVR implementation in 2026.
Positive
- California AB30 authorizes E15, expanding ethanol market >600M gal/yr
- UC Berkeley study: $2.7B/yr pump savings (~$0.20/gal)
- Aemetis Keyes plant capacity: 65M gal/yr (in‑state production benefit)
- $30M MVR retrofit to cut natural gas use by 80%
- MVR expected to raise Keyes cash flow by $32M/yr after 2026
Negative
- $30M capital expenditure required for MVR (cash outflow)
- MVR benefits are not expected until 2026 (implementation delay)
- Keyes plant 65M gal/yr vs market expansion >600M gal/yr (limited standalone scale)
News Market Reaction
On the day this news was published, AMTX gained 15.72%, reflecting a significant positive market reaction. Argus tracked a peak move of +18.2% during that session. Our momentum scanner triggered 37 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $25M to the company's valuation, bringing the market cap to $181M at that time. Trading volume was above average at 1.5x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
CUPERTINO, Calif., Oct. 03, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company, announced today that California Governor Gavin Newsom signed Assembly Bill 30 (AB30), which immediately allows
“E15 approval in California is a smart move to help families save money at the pump and advance the state’s renewable energy and environmental goals,” stated Eric McAfee, Chairman and CEO of Aemetis and a Board member of the Renewable Fuels Association (RFA). “E15 increases the amount of lower cost, high octane renewable fuel while reducing emissions from conventional gasoline.”
“Thanks to Gov. Newsom’s leadership and decisive action, California is on the road to lower gas prices and a cleaner future for families across the state,” stated RFA President and CEO Geoff Cooper. “Many other states have already seen the benefits of E15—healthier air, better engine performance, and cost savings at the pump. Now, California drivers are able to experience those same advantages for themselves, and we thank Gov. Newsom for voicing his support for E15 throughout the legislative process. We likewise thank the bipartisan California Problem Solvers Caucus and the bill sponsors, Assemblymembers David Alvarez and Heath Flora, for working to open the California fuel marketplace to cleaner and more affordable options.”
Aemetis owns and operates a 65 million gallon per year ethanol facility in California’s Central Valley near Modesto. With E15 now approved, more ethanol can be blended into gasoline, supporting in-state production and helping reduce the cost and carbon intensity of transportation fuels in California.
Aemetis continues to invest in clean fuel growth in California. The next phase of investment, adding a
About Aemetis
Headquartered in Cupertino, California, Aemetis is a renewable natural gas and biofuels company focused on the operation, acquisition, development, and commercialization of innovative technologies that lowers fuel costs and reduces 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 biodiesel and refined glycerin. Aemetis is developing a carbon sequestration well project and a renewable diesel fuel and SAF biorefinery in Riverbank, California. 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, biodiesel 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 did Aemetis (AMTX) announce on October 3, 2025 about AB30 and E15?
How does AB30 affect Aemetis Keyes ethanol plant (AMTX) capacity?
What consumer savings does the PR cite from E15 approval for California?
What is the MVR investment announced by Aemetis and its expected impact on AMTX?
When will Aemetis realize the MVR-related cash flow improvements for AMTX?
Does AB30 immediately change California fuel rules for AMTX customers?
