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CUPERTINO, Calif. - Aemetis, Inc. (NASDAQ: AMTX), a company specializing in renewable natural gas (RNG) and renewable fuels with annual revenues of $237.9 million, has entered into a $27 million equipment procurement agreement with Centuri Holdings, Inc. (NYSE: CTRI), an infrastructure services contractor. According to InvestingPro analysis, Aemetis is currently trading below its Fair Value, though investors should note the company’s significant debt position of $468.25 million. The deal, announced today, will see the construction of biogas cleanup systems for 15 dairy digesters as part of the Aemetis Biogas Central Digester Project near Modesto, California. InvestingPro data reveals the company faces challenges with cash burn and profitability, with 10+ additional key insights available to subscribers through detailed Pro Research Reports covering 1,400+ US stocks.
The agreement with Centuri is a strategic move by Aemetis Biogas to enhance the production of RNG from dairy waste. This initiative is part of a broader plan to operate digesters for 50 dairies, with 16 slated to be functional this summer. With a current market capitalization of $78.62 million and gross profit margins at -2.12%, the company’s expansion efforts are crucial for improving its financial health, which InvestingPro currently rates as WEAK. The project already includes a 36-mile biogas pipeline and a central facility converting biogas to RNG, which is being delivered into the Pacific Gas and Electric Company (PG&E) utility pipeline.
Eric McAfee, Chairman and CEO of Aemetis, highlighted Centuri’s expertise in industrial facility construction and large-scale gas pipeline projects as pivotal for completing Aemetis projects on time and within budget. Dylan Hradek, President of US Gas at Centuri, expressed confidence in adding value to Aemetis’s renewable energy initiatives.
Aemetis’s renewable energy projects encompass various efforts, including the expansion of dairy RNG production, expected to yield over 1 million MMBtu of RNG; a mechanical vapor recompression system at the Keyes ethanol plant projected to increase annual cash flow by $32 million starting in 2026; a carbon sequestration project in Riverbank, California, aiming to inject 1.4 million tons of CO2 per year underground; and a 78 million gallon per year sustainable aviation fuel and renewable diesel plant, which has received necessary construction and environmental approvals.
Aemetis, founded in 2006 and headquartered in Cupertino, operates an ethanol production facility in California’s Central Valley and a biodiesel production facility in India. It is also developing projects in sustainable aviation fuel, renewable hydrogen, and hydroelectric power.
The information in this article is based on a press release statement by Aemetis, Inc.
In other recent news, Aemetis Inc. reported its Q1 2025 financial results, revealing a revenue of $42.9 million, which fell short of the anticipated $56.89 million. The company also reported an earnings per share (EPS) of -$0.47, missing the forecasted -$0.40. The revenue shortfall was primarily due to delays in biodiesel contracts in India. Despite these challenges, Aemetis maintained its net loss at $24.5 million, consistent with the previous year, while continuing to invest in renewable energy projects. The company is actively exploring expansion opportunities in India and is preparing for a subsidiary IPO. Aemetis is also targeting multiple revenue streams, including Low Carbon Fuel Standard (LCFS) credits and federal tax incentives, to bolster its financial position. Furthermore, the company has received approval for $200 million in EB-5 financing, which could provide additional financial flexibility. These developments reflect Aemetis’ ongoing efforts to navigate market challenges and strengthen its financial outlook.
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