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CUPERTINO, Calif. - Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company with a market capitalization of $67 million and significant revenue growth of 43% over the last twelve months, has announced its subsidiary Aemetis Biogas completed sales amounting to $1.6 million in April. According to InvestingPro analysis, while the company shows strong top-line growth, it currently operates with substantial debt of $470 million. These sales were from California Low Carbon Fuel Standard (LCFS) credits and federal Renewable Fuel Standard D3 Renewable Identification Numbers (D3 RINs).
The LCFS credits correspond to the fourth quarter of 2024, calculated at a default rate of -150 carbon intensity. Aemetis is awaiting final approval from the California Air Resources Board (CARB) for seven digesters, which are anticipated to produce credits at an average carbon intensity lower than -350. This could potentially more than double the number of LCFS credits received by the company after sales transactions are finalized.
Aemetis’ Chairman and CEO, Eric McAfee, shared that the company’s biogas production and revenue from dairy renewable natural gas (RNG) are expanding, with four additional dairies expected to start contributing to biogas production this quarter. McAfee also indicated that the CARB’s expected adoption of 20 years of low carbon biofuel mandates could significantly increase the value of LCFS credits.
The company has agreements with 50 dairies and currently operates 11 digesters that process waste from 12 dairies, with plans to bring another four dairies online in the second quarter of 2025. While expansion continues, InvestingPro data reveals the company faces challenges with negative EBITDA of -$32 million and a concerning current ratio of 0.31, indicating potential liquidity constraints. For deeper insights into Aemetis’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. Aemetis Biogas has installed 36 miles of biogas pipeline and has received environmental approval for a total of 60 miles as more dairy digesters are completed.
Revenue streams for dairy RNG include the sale of the fuel itself, LCFS credits, federal D3 RINs, and federal Section 45Z production tax credits, in addition to federal Section 48 investment tax credits. Over the past 18 months, Aemetis has secured $70 million from the sale of $83 million worth of Section 48 investment tax credits to two corporate purchasers. More sales of Section 48 investment tax credits are anticipated in the coming months as additional dairy digesters are completed. Furthermore, starting January 2025, Aemetis Biogas began generating 45Z production tax credits from dairy RNG production, with the first sales of these credits expected in the summer of 2025.
This announcement is based on a press release statement from Aemetis, Inc. With the stock trading near its 52-week low and showing signs of undervaluation according to InvestingPro Fair Value analysis, investors seeking detailed financial metrics, expert insights, and 14 additional ProTips can explore the complete analysis available on InvestingPro’s dedicated research platform.
In other recent news, Aemetis, Inc. reported a 43% increase in annual revenue for 2024, reaching $268 million. Despite this growth, the company experienced a widened net loss of $87.5 million, up from $46.4 million in 2023, highlighting ongoing financial challenges. The company’s Indian subsidiary, Universal Biofuels, has begun biodiesel shipments valued at $31 million to government-owned Oil Marketing Companies, aligning with India’s initiative to increase biodiesel blend in fuels. Additionally, Aemetis announced that its Indian unit completed $112 million in biodiesel and glycerin shipments in the previous fiscal year, emphasizing its significant role in the Indian biofuel market.
In other developments, Aemetis is exploring an Initial Public Offering for its India biodiesel segment, anticipated in late 2025, subject to market conditions. The company is also advancing its renewable energy projects, including a sustainable aviation fuel and renewable diesel biorefinery in California. Moreover, the Stanislaus County Board has extended its Commercial Property Assessed Clean Energy (C-PACE) program, which Aemetis expects to utilize for several energy projects. These developments underscore Aemetis’ ongoing efforts to expand its renewable energy footprint and address financial sustainability.
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