Aemetis reports increased revenue for Q3
Aemetis Inc. reported increased revenues for Q3, driven by its California ethanol, India biodiesel, and dairy RNG segments. The company expects RNG production to surpass 500,000 MMBtus by year-end and expand further by 2025. Development continues on SAF and CCS projects, with a focus on improving energy efficiency at its Keyes ethanol plant. Despite a net loss of $17.9 million, revenue grew to $81.4 million, up from $68.7 million last year.
November 19, 2024
BY Erin Voegele
Aemetis Inc. on Nov. 12 released third quarter financial results, reporting increased revenue for its California ethanol, India biodiesel and dairy renewable natural gas (RNG) business segments. Development also continues on the company’s sustainable aviation fuel (SAF) and carbon capture and sequestration (CCS) projects.
According to Aemetis Chairman and CEO Eric McAfee, the company expects its RNG business to be producing more than 500,000 MMBtus by the end of this year, expanding to a run rate of 1 million MMBtus by the end of 2025. By the end of December, the Aemetis Biogas business will be operating 12 digesters and process waste from 16 dairies. The company plans to grow to 26 dairies operating or in construction by the end of 2025, he added.
The company’s LCFS RNG pathways are still in progress. Those pathways were submitted 18 months ago. McAfee estimates the company is still at least four months away from the approval of a provision pathway that will allow it to generate LCFS revenues above the default pathway. Once approved, the pending LCFS pathways will allow the company to achieve significantly higher LCFS revenues.
Andy Foster, executive vice president, North America, discussed ongoing improvement projects at the Keyes ethanol plant. The facility is working to install a mechanical vapor recompression (MVR) system, which is expected to improve cash flow and energy efficiency. Foster said the company has completed process design and detailed engineering for the system and is now building and fabricating equipment offsite. Once operational, the MVR system is expected to reduce fossil natural gas usage by 80%. According to Foster, the system is currently expected to be installed approximately one year from now.
Foster also briefly discussed the company’s SAF and CCS projects. During the first quarter of 2024, Aemetis received authority to construct air permits for its proposed 90 MMgy SAF and renewable diesel project under development in Riverbank< California. When operated to produce only SAF, the facility is expected to have the capacity to produce 78 MMgy. According to Foster, the company continues to discuss the use of innovative pricing structures with its airline customers to accelerate the financing, construction and operation of the Riverbank facility.
The Aemetis CCS subsidiary previously earned approval from the state of California to drill a characterization well. Foster said the first phase of drilling and installation of the conductor pipe for the characterization well was completed about a month ago. The company is now working on the second phase of drilling, he added. Data gathered from the characterization well will be used to secure a federal Class VI permit for the project.
Todd Waltz, chief financial officer at Aemetis, noted the company’s corn ethanol plant in Keyes, California, reported $45 million in revenue during the third quarter with ethanol production at 15.5 million gallons. The RNG segment sold 85,993 MMBtus from nine operating dairy digesters and sold 935,000 renewable identification numbers (RINs) and 20,000 metric tons of Low Carbon Fuel Standard credits, reporting $4.2 million in revenue for the three-month period, he added. The India biodiesel business recognized $32.2 million in revenue.
Aemetis reported revenues of $81.4 million for the third quarter, up from $68.7 million during the same period of last year. Gross profit was $3.9 million, compared to $492,000. Operating loss was $3.9 million, compared to an operating loss of $8.5 million reported for the third quarter of 2023. Net loss was $17.9 million, compared to net income of $30.7 million.
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