Aemetis, Inc. (NASDAQ: AMTX), a leader in renewable natural gas and renewable fuels, has announced the completion of initial construction on a multi-dairy anaerobic digester in Merced County, California. The facility, designed to process waste from approximately 14,000 dairy cows, is expected to begin operations by the end of 2024 and produce more than 200,000 MMBtu of renewable natural gas (RNG) per year.
This development represents a significant expansion of Aemetis Biogas' production capacity and underscores the company's commitment to reducing greenhouse gas emissions through innovative technologies. The multi-dairy digester will collect waste from four dairies located within a half-mile radius and is connected to the company's 36-mile biogas pipeline.
Eric McAfee, Chairman and CEO of Aemetis, expressed optimism about the project's impact on the company's growth trajectory. Aemetis Biogas is scheduled to significantly increase production this quarter, including the multi-dairy digester and two other dairy digesters, McAfee stated. He highlighted the potential for rapid revenue growth from new digesters, which will benefit from credits under the Low Carbon Fuel Standard and Production Tax Credits from the Inflation Reduction Act starting in January 2025.
Currently, Aemetis generates biogas from ten dairy-fed anaerobic digesters, producing approximately 300,000 MMBtu of RNG annually. With the completion of the multi-dairy digester and two additional digesters, the company's production is set to increase to around 550,000 MMBtu of RNG per year, sourced from 16 dairies.
The company's ambitious expansion plans extend beyond the current project. Aemetis Biogas has signed agreements with 48 dairies and plans to incorporate an additional 27 dairies into its biogas portfolio. Once fully operational, the Aemetis Biogas Central Dairy Project is projected to generate more than 1.6 million MMBtu of RNG annually, with expected annual revenues of $250 million.
This expansion aligns with Aemetis' broader mission to replace petroleum-based products and reduce greenhouse gas emissions. The company operates a diverse portfolio of renewable energy projects, including a 65 million gallon per year ethanol production facility in California's Central Valley and a 60 million gallon per year biodiesel and refined glycerin production facility in India.
Aemetis is also developing a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in California, which will utilize renewable hydrogen, hydroelectric power, and renewable oils to produce low carbon intensity jet and diesel fuel. These initiatives collectively position Aemetis as a key player in the transition to sustainable, low-carbon energy solutions.
The completion of the multi-dairy digester marks a significant milestone in Aemetis' efforts to expand its renewable natural gas production. As the global demand for cleaner energy sources continues to grow, projects like this demonstrate the potential for agricultural waste to be transformed into valuable, environmentally friendly fuel sources. The increased production capacity not only benefits Aemetis financially but also contributes to the reduction of greenhouse gas emissions in the agriculture and transportation sectors.
As Aemetis continues to expand its biogas operations and explore new renewable energy technologies, the company is poised to play an increasingly important role in the transition to a more sustainable energy landscape. The success of this multi-dairy digester project could serve as a model for similar initiatives across the agricultural sector, potentially leading to a significant reduction in methane emissions from dairy farms while providing a valuable source of renewable energy.
