Headquartered in Cupertino, California, Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company, has successfully closed a tax credit sale worth $53 million for its biogas projects. The sale involved the transfer of Inflation Reduction Act (IRA) investment tax credits generated by Aemetis Biogas LLC to a corporate purchaser on September 29, 2023. This transaction marks Aemetis’ first IRA tax credit sale in the dairy biogas industry.
The investment tax credits were generated from various biogas projects developed by Aemetis Biogas, including the construction of six dairy digesters, a biogas pipeline, and a renewable natural gas (RNG) production facility. The Inflation Reduction Act, signed into law in August 2022, enables the issuance of transferable federal income tax credits for select renewable fuel projects and products.
Eric McAfee, Chairman and CEO of Aemetis, expressed his belief that this $53 million tax credit sale is the largest IRA tax credit transaction in the dairy biogas industry, highlighting the transferability of tax credits under the federal Inflation Reduction Act. McAfee also emphasized the ability of renewable fuels projects to generate funding from IRA tax credits, which will support Aemetis’ investments. He further revealed that Aemetis expects to qualify for more than $800 million of IRA investment and production tax credits over the next four years to support their biogas projects, CO2 re-use initiatives, sustainable aviation fuel plant construction, and CO2 sequestration efforts.
Aemetis Biogas is actively engaged in building anaerobic digesters at California dairies to capture biomethane from animal waste. Currently, Aemetis operates seven digesters, with an additional five under construction, and has contracts with 37 dairies to supply animal waste. The captured biogas is transported via a pipeline to a centralized facility at the Aemetis Keyes ethanol plant, where it is upgraded to below-zero carbon intensity RNG (renewable natural gas). This RNG is injected into PG&E’s natural gas pipeline and distributed to transportation fuel customers throughout California.
In addition to its biogas projects, Aemetis is constructing its own RNG fueling station at the Keyes ethanol plant. The station will provide trucks with locally produced renewable natural gas, resulting in a significant 90% reduction in emissions compared to petroleum diesel fuel.
The methane emissions from dairy waste lagoons contribute approximately 25% of California’s total methane emissions. Upon completion, the Aemetis biogas project aims to capture methane from the waste produced by over 150,000 cows on dairy farms in California, generating 1,650,000 MMBtu of renewable natural gas annually. This project is designed to reduce greenhouse gas emissions equivalent to approximately 6.8 million metric tonnes of carbon dioxide over ten years, which is comparable to removing the emissions generated by approximately 150,000 cars each year.
Aemetis is focused on acquiring, developing, and commercializing innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. They also own and operate an ethanol production facility in California’s Central Valley and a production facility in India that produces biodiesel and refined glycerin. Furthermore, Aemetis is developing sustainable aviation fuel and renewable diesel fuel biorefineries in California to produce low-carbon-intensity renewable jet and diesel fuel using waste orchard and forest wood.
Aemetis’ portfolio includes patents and exclusive technology licenses to produce renewable fuels and biochemicals. With their ongoing initiatives and upcoming projects, Aemetis is dedicated to making significant contributions in the renewable energy sector.
For more information about Aemetis and their projects, please visit their official website.
