In the United States (US), Aemetis, Inc., a renewable natural gas and renewable fuels company focused on low and negative carbon intensity products, has announced that its Aemetis Biogas subsidiary started producing renewable natural gas (RNG) from its tenth anaerobic digester (AD) unit built to process waste from a dairy in Stanislaus County, California (CA).
The newly constructed digesters for five additional dairies are in the final stages of commissioning and construction. They are scheduled to expand the total Aemetis Biogas operations to twelve digesters processing waste from sixteen dairies.
Combined, the digesters are designed to produce an estimated 550,000 MMBtu per year of biomethane aka renewable natural gas (RNG) in 2025, an 80 percent increase from the current production capacity of 300,000 MMBtu per year.
This month, Aemetis also expects to generate an estimated US$11.5 million from the sale of investment tax credits from the construction of dairy digesters and other projects earlier this year.
The new dairy digester in Stanislaus County was completed on December 10, 2024, and the additional digesters under construction are expected to generate additional investment tax credits under the Inflation Reduction Act (IRA) currently estimated at approximately US$10 million of additional proceeds from tax credits to be sold during Q1 2025.
LCFS Pathway approvals
Separately, seven of the company’s existing operating dairy digesters are in the final verification process for California Air Resources Board (CARB) pathway approval under the Low Carbon Fuel Standard (LCFS).
The temporary pathway for dairy biogas under the LCFS is -150 carbon intensity. Aemetis expects the approved pathways will average -380 carbon intensity, resulting in approximately a 100 percent increase in LCFS credit revenues from the generation of additional LCFS credits.
LCFS Pathway approval from CARB is expected in the first half of 2025. In the recent adoption by CARB of air emissions mandate through to 2045, Aemetis RNG production is expected to qualify for 20 years of avoided methane credits under the LCFS in California.
Aemetis Biogas is on track to increase RNG production by about 80 percent, including the dairy digester that began operation today and those projects nearing completion. We are pleased with the rapid acceleration of revenue growth from new digesters, which generate revenues from LCFS credits and Renewable Fuel Standard D3 RINs, stated Eric McAfee, Chairman and CEO of Aemetis.
Central biogas upgrading hub
Aemetis digesters are connected to an existing 36-mile Aemetis biogas pipeline, feeding the central RNG production facility located at the Aemetis Keyes ethanol plant near Modesto.
To date, 49 dairies have signed agreements with Aemetis Biogas to supply waste to existing and planned dairy digesters in the Aemetis Biogas Central Dairy Project.
The buildout of the dairy digesters and other facilities in the Aemetis Biogas project has been funded by US$50 million of USDA-guaranteed loans with 20-year repayment terms under the Rural Energy for America Program (REAP).
An additional US$75 million of USDA-guaranteed loans are currently in process.
Prior to the additional dairy digester started today, Aemetis generated biogas from nine anaerobic digesters fed by ten dairies with a production capacity of approximately 300,000 MMBtu per year of RNG.
After the upcoming completion of three new digesters processing waste from six additional dairies, Aemetis expects to produce approximately 550,000 MMBtu of RNG per year from 12 digesters processing waste from 16 dairies.
When fully operational, the dairies in the Aemetis Biogas Central Dairy Project are expected to produce more than 1.6 million MMBtu per year of RNG and generate annual revenues of US$250 million.
