Aemetis Gives Replace on Federal Insurance policies in the US and Operations in India – complaints by native residents of odors within the industrial space the place the plant is situated
CUPERTINO, Calif. – January 23, 2025 – Aemetis, Inc. (NASDAQ: AMTX), a renewable pure fuel and renewable fuels firm, in the present day offered an replace on the affect of varied federal insurance policies in the US and operations on the Aemetis biodiesel plant in India.
On January 20, 2025, President Trump declared a “Nationwide Power Emergency” by way of govt order that requires the EPA to think about the usage of emergency gas waivers to permit year-round sale of gasoline containing 15% ethanol, known as “E15.” Aemetis is the most important ethanol producer in California. An annual enhance in demand for ethanol ought to bolster ethanol mixing into gasoline and considerably scale back ethanol inventories nationwide.
President Trump additionally issued the “Unleashing American Power” govt order which directs all federal companies to increase the event of home power sources, particularly itemizing biofuels as a class of home power to be supported by a variety of federal efforts.
The President, in a separate Govt Order, established a course of for the overview of pending insurance policies and rules earlier than remaining adoption, together with the Part 45Z Clear Gasoline Tax Credit score that applies to renewable pure fuel (RNG) and ethanol manufacturing beginning on January 1, 2025, beneath which the Workplace of Administration & Price range will overview and approve insurance policies earlier than implementation. The acknowledged timeframe for this coverage overview is 60 days, although precise coverage adoption may be earlier or later. Aemetis plans to submit 45Z-related feedback to the IRS for consideration throughout the expedited overview course of to verify the calculation of 45Z tax credit as part of the deliberate gross sales of Part 45Z tax credit generated by Aemetis Biogas and Aemetis ethanol operations.
Aemetis has raised $50 million via USDA Rural Power for America Program (REAP) mortgage ensures and expects to shut on its subsequent $25 million REAP mortgage within the coming months, with extra purposes already within the overview course of. Aemetis expects to assemble 10 new dairy digester initiatives in 2025.
Within the fourth quarter of 2024, the California Air Sources Board (CARB) notified Aemetis that seven dairy digester Provisional Pathway purposes are “deemed full” and had been moved to the ultimate verification course of, which is predicted to be accomplished this month. Aemetis expects CARB approval of those seven pathways by the tip of Q1 2025. This CARB approval is predicted to extend LCFS credit generated from these seven digesters by greater than 80%, with the elevated revenues and money anticipated to be acknowledged in April 2025 and quarterly thereafter. CARB’s November 2024 approval of the 20-year LCFS extension features a shorter Tier 1 approval course of for future Aemetis pathway purposes, together with the 5 dairy digesters commissioned by Aemetis Biogas in 2024, with an anticipated 9 to 12 month approval interval.
In India, the Kakinada biodiesel plant owned and operated by Aemetis’ subsidiary Common Biofuels Non-public Restricted (UBPL) was contacted by native officers in mid-December 2024 relating to complaints by native residents of odors within the industrial space the place the plant is situated. Aemetis had produced about two months of biodiesel stock and voluntarily agreed to halt manufacturing to research odors. Nevertheless, after ceasing operations for one month, odors within the space endured, probably associated to edible oil fractionation amenities in the identical space. On January 19, 2025, an official discover was obtained by UBPL requesting that the plant stop manufacturing till a overview is accomplished, regardless of having already completed so a month earlier. A decision of the official order is being organized with native officers. Because the plant has two months of biodiesel product out there for supply to prospects, the short-term cessation of manufacturing will not be anticipated to affect the revenues beneath the present OMC allocation.
Aemetis, via its UBPL subsidiary, constructed the Kakinada plant in 2008 and has operated the plant for greater than 15 years, creating greater than 100 direct jobs associated to the plant and a whole lot of jobs not directly to help biodiesel plant operations. UBPL has intensive expertise in coping with native regulatory and authorities officers, and whereas it isn’t unusual for officers to difficulty orders after the actual fact in response to native activists, manufacturing is predicted to renew quickly and anticipated deliveries beneath OMC allocations may be made out of stock readily available. Additional, Aemetis has applied an enlargement of the Kakinada plant that elevated annual manufacturing capability from 60 million gallons per yr to 80 million gallons per yr.
Common Biofuels has recognized a extremely certified candidate to be Chief Monetary Officer and is engaged on a possible IPO of the enterprise in India later this yr. The native compliance notices are thought of to be within the bizarre course of enterprise for oil refineries, renewable fuels crops, and different processing crops in India and are usually not anticipated to have an effect on the IPO course of.
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Aemetis Gives Replace on Federal Insurance policies in the US and Operations in India – complaints by native residents of odors within the industrial space the place the plant is situated, supply
