Aemetis Biogas also completed a sale of LCFS and D3 RINs at the end of Q1. The LCFS credits were generated from RNG dispensed as transportation fuel in Q4 2024 and were booked under the California Air Resource Board (CARB) reporting process at the end of the first quarter this year. The D3 RINs were from production and dispensing of RNG in February 2025.
“Aemetis Biogas uses animal waste feedstock to produce domestic energy which is not directly impacted by import/export tariffs. The significant 55% increase in monthly RNG production in March compared to February is on track with our 2025 production plan and generates proportionally larger LCFS and D3 RIN revenues, as well as Section 45Z sellable tax credits,” stated Eric McAfee, chairman and CEO of Aemetis.
“We are now completing construction of digesters that will process waste from four additional dairies that are expected to be operational in the next few months, supporting the sale of another round of investment tax credits and further increasing RNG production and associated revenues.”
Aemetis Biogas is in the final phase of Low Carbon Fuel Standard pathway approvals for seven dairy digesters by the California Air Resources Board, which is expected to be received before the end of Q2, which should generate about $6 million per year of increased revenues from LCFS credits at current prices.
CARB is also in the process of finalizing its November 2024 LCFS amendments that are expected to significantly increase the mandated demand for LCFS credits, and CARB just published its final proposed regulations for a fifteen-day comment period last Friday. The higher LCFS credit prices expected to be created by these regulations will further increase Aemetis Biogas LCFS revenue proportionally to the LCFS credit price increase, potentially generating up to 300% more total LCFS revenue per MMBtu of RNG.
Aemetis Biogas continues to grow production and revenues as it builds digesters and biogas pipelines to capture methane from 50 dairies that have signed agreements to supply the Central Dairy Digester Project near Modesto, California. When completed, the Aemetis Biogas Central Dairy Digester Project is expected to generate 1.65 million MMBtu of dairy RNG each year.
Since California imports more than 75% of the crude oil used to produce diesel, the Aemetis RNG project is planned to replace the primarily imported diesel consumed by trucks that drive 77 million miles per year with low emission, local RNG biofuel produced from American domestic waste sources.
