Aemetis Biogas Completes Construction Funding from $25 million USDA Loan for Aemetis Biogas 1 Dairy Digesters

Digesters supplied by 18 dairies planned to be operational by end of Q4 2024

CUPERTINO, CA, Feb. 01, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on negative carbon intensity products, announced today the deployment of the entire $25 million of funding provided under the previously announced USDA-guaranteed loan for its Aemetis Biogas 1 LLC (AB1) project company.

Aemetis Biogas produces renewable natural gas (RNG) from dairy biomethane digesters located in California’s Central Valley. Aemetis Biogas operates digesters supplied by eight dairies and has agreements with 37 dairies, operates a centralized biogas-to-RNG production facility with utility gas pipeline interconnection, and has completed 36 miles of biogas pipeline with a total of 60 miles already permitted under CEQA.

In addition to the USDA-guaranteed funding, Aemetis Biogas invested $30 million of project equity and has obtained $23 million of grants to date.

The Aemetis AB1 loan was guaranteed by the USDA under the Renewable Energy for America (REAP) loan guarantee program that required monthly draws of funding for project construction. Prior to obtaining the loan, the AB1 project company had already invested the entire equity amount required by the REAP program.

USDA guaranteed loans are expected to be used to fund the construction of additional dairy digesters and biogas pipelines, with a total of $150 million of 20-year loans either closed or in process. In the past year, $50 million of funding guaranteed by the USDA has closed to fund the Aemetis Biogas 1 and 2 project companies. Funding of Aemetis Biogas project companies 3 through 6 is in process, for an additional $100 million of 20-year, USDA-guaranteed funding expected to be obtained in 2024.

For each operating digester, Aemetis has completed testing and verification as well as submitted an application for certified carbon intensity Pathways to CARB at lower carbon intensity values than the temporary Pathway based on actual data from biogas production and dairy operations. The certified Pathway scores are expected to increase LCFS revenues by more than 80% for future LCFS credit sales after the Pathways are approved, compared to the number of LCFS credits issued under the temporary Pathway carbon intensity value. Producers utilize the temporary Pathway while CARB is processing their pathway applications.