Aemetis, Inc. has recently garnered $6 million in cash proceeds from the sale of $7.7 million in Inflation Reduction Act (IRA) investment tax credits, a move that underscores the company's commitment to renewable energy and environmental sustainability. These tax credits stem from the company's investment in dairy biogas digesters, which were constructed and operational by the fourth quarter of 2024. This transaction is part of a broader strategy, following a similar sale last month that brought in $11 million, highlighting the financial and environmental benefits of such initiatives.
The significance of these proceeds, as highlighted by Eric McAfee, Chairman and CEO of Aemetis, lies in their potential to fund domestic energy production and reduce reliance on imported crude oil. With additional tax credit sales anticipated from ongoing biogas digester and pipeline projects, set for completion in the second quarter of 2025, Aemetis is positioning itself as a leader in the renewable energy sector. The company's infrastructure, including twelve dairy digesters and a 36-mile biogas pipeline, plays a pivotal role in this endeavor.
Environmental benefits are at the heart of the Aemetis Biogas project. Given that about 25% of methane emissions in California originate from dairy waste lagoons lacking methane capture systems, the project's aim to capture methane from over 150,000 dairy cows is both timely and critical. Once fully operational, the project is expected to produce 1,650,000 MMBtu of renewable natural gas annually and reduce greenhouse gas emissions by approximately 6.8 million metric tons of carbon dioxide over ten years. This initiative not only contributes to cleaner energy production but also supports local agriculture by supplying two million pounds of animal feed daily to around 80 dairies through the company's Keyes ethanol plant.
The sale of IRA tax credits by Aemetis, Inc. represents a significant milestone in the intersection of environmental sustainability and renewable energy development. By leveraging financial mechanisms like the IRA, the company is able to advance projects that have a tangible impact on reducing greenhouse gas emissions and promoting energy independence. For more information on the Inflation Reduction Act and its implications for renewable energy, visit https://www.energy.gov.
