Aemetis Ethanol Plant Passes $2 Billion Revenues Milestone; Expects $40 Million Annually From Energy Efficiency Project

Associated Press

14-02-2025

From 2011 to early 2025, Aemetis delivered 768 million gallons of ethanol and 5.2 million tons of distillers grain that fed more than 100,000 dairy cows at about 80 dairies
CUPERTINO, CA - February 14, 2025 ( NEWMEDIAWIRE) - Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company operating in the U.S. and India, today announced that cumulative revenues generated by the Aemetis ethanol plant in California passed the $2 billion milestone. The company also expects improved cash flows from the Mechanical Vapor Recompression (MVR) energy efficiency project that is scheduled to be operational in the first half of 2026.
Located near Modesto, California, the Aemetis Keyes 65 million gallon per year capacity ethanol plant has been operating since 2011, delivering more than 768 million gallons of ethanol ($1.6 billion revenues) to the California market and 5.2 million tons of wet distillers grain ($400 million revenues) that has fed more than 100,000 dairy cows at about 80 dairies a lower cost, high value animal feed.
In addition to ethanol and distillers grain, the plant delivered 144 million pounds of distillers corn oil ($55 million revenues), primarily used as animal feed and commonly used as a feedstock to produce renewable fuels. The plant also delivered 89,000 tons of syrup ($5 million revenues), used as animal feed.
A key energy efficiency project at the Aemetis ethanol plant is the installation of a $25 million MVR system that will compress vapors with high capacity turbofans powered by lower carbon electricity, reducing the current use of fossil natural gas as process energy fuel. The fabrication of the equipment for the MVR project is currently underway, with installation planned for Q4 2025 and full operations in the first half of 2026.
Recent updates in the calculation of the value of energy efficiency projects at ethanol plants have increased the estimated cash flow improvement expected from the MVR project. By using lower carbon electricity, the quantity of natural gas consumed and the cost of natural gas will be reduced by an estimated 80%, partially offset by an increased cost of electricity. The 2 megawatt solar installation at the Keyes plant provides low carbon electricity that supports the decreased carbon intensity of plant operations.
Importantly, converting from natural gas to electricity will significantly reduce the carbon intensity of ethanol produced by the Aemetis plant. Based on the Treasury guidance provided in January, the MVR energy efficiency project will decrease the Section 45Z carbon intensity of the ethanol plant by about 15 points, improving the Keyes plant cash flow by an estimated $0.33 per gallon, or approximately $22 million per year.
In addition to 45Z revenues, the lower carbon intensity provided by the MVR system will increase the California Low Carbon Fuel Standard (LCFS) credits generated by the plant, with the reduction in carbon intensity expected from the MVR project expected to increase revenues by $.09 per gallon at current LCFS credit prices of $72 per metric ton.
CARB's recent updates to its LCFS regulations include significant reductions in the LCFS benchmark carbon intensity that are expected to create greater demand and lower supply of LCFS credits and to increase LCFS credit prices. At LCFS credit prices of $150 per metric ton, the MVR project would generate about $0.18 per gallon of additional revenues, or approximately a $12 million revenue increase per year.
Combined, the increase in LCFS credits, new 45Z revenues, and a significant reduction in energy costs are expected to provide more than $40 million per year of improved cash flow from the Aemetis ethanol plant starting in 2026 as a result of the MVR energy efficiency project.
About Aemetis
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the operation, acquisition, development, and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas 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 distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis acquired the 125-acre former Army Ammunition Production Plant site in Riverbank, California to develop a carbon sequestration project and a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery to utilize renewable hydrogen, hydroelectric power, and renewable oils to produce low carbon intensity renewable jet and diesel fuel. 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, biodiesel, SAF and renewable diesel, and carbon sequestration facilities; and our ability to promote, develop, finance, and deploy technologies to produce renewable fuels and biochemicals. 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.
External Investor Relations
Contact:
Kirin Smith
[phone]
Company Investor Relations/
Media Contact:
Todd Waltz
[phone]