In the United States (US), Aemetis, Inc., a diversified renewable natural gas (RNG) and biofuels company, has announced that the Capital Programs and Climate Financing Authority (CPCFA) in California has adopted an Initial Resolution related to potential future issuance of up to US$1.1 billion of tax-exempt bonds for Aemetis projects.
Adoption of the Initial Resolution meets federal tax requirements so that funds from any tax-exempt bonds issued by CPCFA can be used for qualified costs of Aemetis projects incurred after the date of the resolution and for certain prior development costs.
This Initial Resolution adopted by CPCFA further confirms the value of our projects, which reduce emissions, lower fuel costs, and create jobs and economic growth in California. The use of tax-exempt bonds at lower interest rates than other sources of financing has the potential to enhance our financial position as we implement a variety of projects that are expected to strengthen our balance sheet and generate profitability, said Eric McAfee, Chairman and CEO of Aemetis.
The Aemetis projects covered by the Initial Resolution include construction of more than 40 additional dairy digesters and biogas pipeline connections to the Aemetis RNG production facility in Keyes, California, as well as underground carbon dioxide (CO2) sequestration and sustainable aviation fuel (SAF) – renewable diesel (RD) production under development in Riverbank, California.
Aemetis Biogas currently operates 12 anaerobic digesters that collect dairy manure waste from fifteen dairies; a 36-mile biogas collection pipeline; a central biogas-to-RNG production facility in Keyes, California; and an interconnect unit to deliver RNG into the PG&E utility gas pipeline.
More than 50 dairies are contracted to supply waste to the network of dairy digesters. Aemetis supplies approximately 80 dairies with animal feed as a byproduct of ethanol production at the Keyes plant.
Issuance of tax-exempt bonds requires allocations from a statewide volume limit. Though the resolution states CPCFA’s intent to issue bonds, the adoption of the Initial Resolution by the CPCFA does not guarantee that the CPCFA will ultimately approve financings until final documentation is completed.
