Aemetis Expands Dairy Waste-Based Renewable Natural Gas Production and Secures Key Financial Backing

Scaling Production and Revenue Potential

The ongoing expansion supports Aemetis’ broader goal of transforming dairy waste into RNG through its biogas network and 36-mile pipeline system, connected to its RNG production facility near Modesto, California. Currently, 49 dairies have signed agreements to supply waste for the Aemetis Biogas Central Dairy Project. Once fully operational, the project is expected to produce over 1.6 million MMBtu annually and generate $250 million in revenue.

Aemetis’ growth is underpinned by financial initiatives, including $50 million in USDA-guaranteed loans through the Rural Energy for America Program (REAP) and an additional $75 million in pending loans. The company also anticipates $10 million in investment tax credits from new digester projects under the Inflation Reduction Act, adding to the $11.5 million already generated this year.

Advancing Sustainability and Regulatory Approvals

Seven of Aemetis’ existing dairy digesters are undergoing California Air Resources Board (CARB) verification for pathway approval under the Low Carbon Fuel Standard (LCFS). Expected by mid-2025, these approvals will allow Aemetis to capitalize on LCFS credit revenues, projected to double with the adoption of lower carbon intensity metrics (-380 CI). The company’s RNG production is set to qualify for 20 years of avoided methane credits under California’s 2045 air emissions mandates.

Eric McAfee, Chairman and CEO of Aemetis, remarked, “Our rapid expansion in RNG production demonstrates the strength of our model, combining scalable operations with a robust pipeline of financial and regulatory incentives.”