Aemetis, Inc., a provider of renewable natural gas (RNG) and renewable fuels with a focus on negative carbon intensity products, has announced the full deployment of a $25 million (€22.9 million) funding provided through a USDA-guaranteed loan for its subsidiary, Aemetis Biogas 1 LLC (AB1) project.
The AB1 project, operated by Aemetis Biogas, specializes in producing RNG from dairy biomethane digesters located in California's Central Valley. The company currently operates digesters supplied by eight dairies and holds agreements with 37 dairies, operating a centralized biogas-to-RNG production facility with utility gas pipeline interconnection. Additionally, Aemetis Biogas has completed 36 miles of biogas pipeline and has a total of 60 miles permitted under CEQA.
In conjunction with the USDA-guaranteed funding, Aemetis Biogas has invested $30 million (€27.5 million) of project equity and secured $23 million (€21.1 million) in grants to date. The loan, guaranteed under the Renewable Energy for America (REAP) loan guarantee program, required monthly draws of funding for project construction. Notably, prior to obtaining the loan, the AB1 project company had already fulfilled the entire equity requirement stipulated by the REAP program.
Aemetis has undertaken rigorous testing and verification for each operating digester, submitting applications for certified carbon intensity Pathways to the California Air Resources Board (CARB) at lower carbon intensity values than the temporary Pathway. This initiative is expected to significantly increase revenues from Low Carbon Fuel Standard (LCFS) credit sales after approval.
Eric McAfee, Chairman and CEO of Aemetis, emphasized the company's commitment to expansion, stating, “Aemetis Biogas is actively growing by constructing additional digesters with a goal of operating digesters supplied by 18 dairies by the end of 2024.” He further highlighted the positive environmental impact of the funding, noting its role in improving local air quality, mitigating methane emissions, and substituting fossil diesel fuel in California trucks.