Aemetis, Inc. (Nasdaq: AMTX) has made significant strides in its renewable natural gas (RNG) and ethanol production, as detailed in a recent update by Stonegate Capital Partners. The company's Dairy RNG platform is now in a high-growth phase, with eleven digesters producing 106,400 MMBtu of RNG in the second quarter of 2025, contributing $3.1 million in revenue. This expansion is supported by regulatory approvals, including seven new Low Carbon Fuel Standard (LCFS) pathways approved by the California Air Resources Board (CARB), enhancing the value of LCFS credits with a blended CI score of -384.
Projections indicate Aemetis's capacity will reach 550,000 MMBtus by the end of 2025 and expand to 1.0 million MMBtus by the end of 2026. The company has diversified its revenue streams to include RNG molecules, D3 RIN credits, and various production tax credits, with $83 million in Section 48 investment tax credits sold to date. Commercial advancements include agreements to build H₂S removal and compression units for 15 digesters, alongside securing 20-year term USDA-guaranteed financing for expansion.
In the California Ethanol segment, the installation of a $30 million mechanical vapor recompression (MVR) system is anticipated to reduce natural gas use by 80% and generate $32 million in annual cash flow from 2026. Policy support, including the CARB's 20-year LCFS framework and Section 45Z Production Tax Credits, is expected to further bolster Aemetis's growth and refinancing efforts.
Financial performance in the second quarter of 2025 showed revenue of $52.2 million, with an improved operating loss of $10.7 million and a net loss of $23.4 million. The company's strategic investments and upcoming revenue from 45Z and new LCFS credits are poised to enhance its financial standing. Stonegate Capital Partners' valuation suggests a potential upside for investors, with Aemetis well-positioned to meet the increasing demand for renewable energy solutions.
