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CUPERTINO, CA - Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company with a market capitalization of approximately $143 million, has successfully sold $13.5 million worth of tax credits, accruing $11 million after transaction costs. According to InvestingPro data, the company currently trades near its Fair Value, though it operates with a significant debt burden of $451 million. These credits stem from the Inflation Reduction Act (IRA) and are tied to the company's renewable energy projects, including a solar initiative and biogas digesters at dairy farms. While InvestingPro analysis shows impressive revenue growth of nearly 60% in the last twelve months, the company maintains weak gross profit margins of just 0.8%. For deeper insights into Aemetis's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The tax credits were generated through investment in a 1.9 megawatt solar photovoltaic and battery microgrid at the Keyes ethanol plant, along with two dairy biogas digesters initiated by Aemetis Biogas in 2024. Moreover, Aemetis has arranged for the sale of additional credits from three more dairy digesters that began operations in December 2024.
The IRA, enacted in August 2022, offers transferable federal income tax credits for renewable energy project investments and production tax credits for low carbon intensity renewable fuels. Eric McAfee, Chairman and CEO of Aemetis, emphasized that the net proceeds align with the IRA's objectives to foster domestic investment, job creation, and to reduce reliance on imported crude oil by promoting the transformation of waste into renewable fuels.
Aemetis anticipates generating over $500 million in IRA investment and production tax credits to support its biogas projects, carbon intensity reduction at its ethanol plant, and the construction of CO2 sequestration wells among other initiatives. The company's Keyes ethanol plant currently provides animal feed to local dairies and is part of a larger effort to capture methane from dairy waste lagoons to produce renewable natural gas (RNG). In 2025, Aemetis plans to produce 550,000 MMBtu of RNG, with a long-term goal of capturing methane from over 150,000 cows and producing 1,650,000 MMBtu of RNG annually.
When fully operational, the Aemetis Biogas project is expected to significantly reduce greenhouse gas emissions, with an estimated equivalence of 6.8 million metric tons of carbon dioxide over a decade. While the environmental impact looks promising, InvestingPro data reveals that analysts have mixed expectations for the company's near-term performance, with a consensus recommendation of 2.33 and price targets ranging from $3 to $28. InvestingPro subscribers can access 8 additional key insights about Aemetis's financial health and growth potential. This initiative also addresses California's challenge of methane emissions from dairy waste lagoons that lack methane capture systems.
Aemetis is known for its operation and expansion of a biogas digester network and pipeline system in California, converting dairy waste gas into RNG. The company also operates an ethanol production facility in California's Central Valley (NASDAQ:CVCY) and a biodiesel production facility in India, with plans to develop a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in Riverbank, California.
This report is based on a press release statement from Aemetis, Inc.
In other recent news, renewable fuels company Aemetis, Inc. reported promising developments. The company experienced a significant revenue growth of nearly 60% over the last year, with the third quarter of 2024 seeing a rise in revenue to $81.4 million. However, it also recorded a net loss of $17.9 million for the same period. Aemetis' facilities have obtained Excise Tax Registration from the Internal Revenue Service, enabling them to claim Section 45Z Production Tax Credits under the Inflation Reduction Act starting 2025.
The company is on track to increase its renewable natural gas production to 550,000 MMBtu per year by 2025, supported by $50 million of USDA guaranteed loans and an additional $75 million in loans currently in process. Aemetis also anticipates substantial revenue growth from RNG and tax credits starting in 2025 due to updates to California's Low Carbon Fuel Standard. These are among the recent developments in Aemetis' business operations.
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