Aemetis RNG Production Facility Receives EPA Approval for D3 RIN Generation; LCFS Data Collection Completed and Pathway Review In Process at CARB; Six Dairy Digesters Fully Operational

Operating 40-mile Biogas Pipeline, Central RNG Facility and Utility Interconnect Processes Waste Methane from California Dairy Farms into Renewable Natural Gas for Use as Carbon Negative Transportation Fuel

CUPERTINO, CA, May 18, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on negative carbon intensity products, announced today that the Environmental Protection Agency (EPA) has approved the Aemetis Biogas Services subsidiary’s renewable natural gas (RNG) production facility for the generation of D3 Renewable Identification Numbers (RINs) under the federal Renewable Fuel Standard (RFS).  Six dairy biogas digesters are fully operational and a seventh dairy digester is scheduled to be operational in early June 2023.

The renewable natural gas produced by Aemetis is expected to generate several revenue streams including: sale of RNG for transportation use to replace petroleum diesel; sale of the California Low Carbon Fuel Standard (LCFS) credits that are used by fuel blenders to meet California carbon reduction and pollution offset mandates; sale of the RINs generated under the federal RFS; and sale of Inflation Reduction Act (IRA) Production Tax Credits, beginning in 2025. 

In addition, the construction and placed in-service of qualified biogas property, under Section 48 of the Inflation Reduction Act, generates Investment Tax Credits (ITCs) that are expected to be equal to 40% of the project costs.  The ITCs are expected to be transferable when the IRS issues guidance for the transfer forms.

Six dairy digesters, more than 40 miles of biogas pipeline, the central biogas-to-RNG upgrading facility, and the utility pipeline interconnection unit are now fully operational.  RNG is being injected into the utility gas system and will be stored underground until Aemetis Biogas receives carbon intensity (CI) pathway approvals from the California Air Resources Board (CARB) for the sale of credits under the LCFS. 

The 90 days of RNG production and data collection required for the CARB approval process has been completed.  A temporary CI pathway of -150 is expected to become available to use while the final pathway is under review by CARB, allowing Aemetis to begin revenues in Q3 2023 using the temporary pathway.

“The approval of the Aemetis Biogas for the generation of D3 RINs is a major step towards full product revenue,” said Andy Foster, President of Aemetis Biogas, Inc. “The significant investments made by Aemetis since 2019 directly reduce greenhouse gas pollution and improve local air quality in Central Valley communities, while creating jobs.  Aemetis continues to rapidly deploy the infrastructure necessary to connect our network of dairy digesters and increase the production of carbon negative dairy renewable natural gas to replace petroleum diesel,” Foster stated.