Aemetis Inc. released first quarter financial results on May 8, reporting increased biogas production, progress with efficiency improvements at the company’s ethanol plant, and resumed biodiesel deliveries. Financing activities are also underway for a proposed sustainable aviation fuel (SAF) project. 

During an earnings call, Aemetis Chairman and CEO Eric McAfee explained that the company’s renewable natural gas (RNG) business is quickly scaling production. Capacity is currently expected to reach 550,000 MMBtu this year, increasing to 1 million MMBtu annually by the end of 2026. 

According to McAfee, Aemetis Biogas is now operating or building projects at 18 dairies, with four dairy RNG projects slated to come online early this summer. Third-party verification has been completed on seven dairy pathways under the California Low Carbon Fuel Standard. Those pathways are currently undergoing final review at the California Air Resources Board. 

McAfee also noted offsite construction has begun on a mechanical vapor recompression (MVP) system that will be installed at the company’s ethanol plant in Keyes, California. Once operational, the MVP system is expected to reduce natural use at the facility by 80%. 

Regarding the ethanol market, McAfee said pricing has improved since earlier this year. The U.S. EPA’s announcement it will issue emergency waivers allowing continued E15 sales this summer provides tailwinds for margin expansion, he added. 

In addition to its U.S.-based biogas and ethanol operations, Aemetis also operates a biodiesel facility in India. According to McAfee, the company resumed biodiesel deliveries to government oil companies in April. He also noted Aemetis is preparing for an initial public offering (IPO) of its India subsidiary, targeting late 2025 or early 2026. In addition, Aemetis is evaluating expanding its India operations to include RNG and ethanol production. 

McAfee also provided a brief update of Aemetis’ proposed 90 MMgy Riverbank project, which aims to produce SAF and renewable diesel. He said the company is in active discussions on financing structures and is awaiting further clarity on the 45Z clean fuel production tax credit and state-level SAF mandates to support project financing. 

The Riverbank project also features a proposed carbon capture and storage (CCS) project. According to McAfee, the company has completed initial drilling and pipe installation for its CO2 characterization well. Data obtained from the next phase of drilling with support permitting efforts. 

Aemetis reported total revenues of $42.9 million for the first quarter, down from $72.6 million reported for the same period of last year. The company attributed the decline to delays in the receipt of contracts in India from government-owned oil marketing companies (OMCs). New OMC letters of intent for $31 million were issue din April and shipments started the same month. 

The Keyes plant increased revenues by $1.7 million. The increase is primarily attributed to the increase in average selling price of ethanol. The dairy RNG segment sold 70,900 MMBtu of RNG during the three-month period, up 10,100 MMbtu when compared to the first quarter of 2024. 

Gross loss for the first quarter was $5.1 million, compared to a gross loss of $600,000 reported for the same period of last year. Operating loss was $15.6 million, compared to an operating loss of $9.5 million. Net loss was $24.5 million, compared to a net loss of $24.2 million.