California approves E15 gasoline, potentially saving drivers 20 cents per gallon

CUPERTINO - California Governor Gavin Newsom has signed Assembly Bill 30 (AB30), immediately allowing 15% ethanol blending in gasoline throughout the state, Aemetis, Inc. (NASDAQ:AMTX) announced Friday. The company, currently valued at approximately $145 million, has seen its stock surge over 50% in the past six months despite facing significant operational challenges, according to InvestingPro data.

The legislation expands California’s potential ethanol market by 50% by increasing the maximum blend from 10% to 15%. According to a study from UC Berkeley and the Naval Academy cited in the announcement, the 15% ethanol blend could reduce gasoline prices by approximately $2.7 billion annually, translating to savings of about 20 cents per gallon for consumers.

"E15 increases the amount of lower cost, high octane renewable fuel while reducing emissions from conventional gasoline," said Eric McAfee, Chairman and CEO of Aemetis, in the press release statement.

Geoff Cooper, President and CEO of the Renewable Fuels Association, added that many other states "have already seen the benefits of E15—healthier air, better engine performance, and cost savings at the pump."

The bill received bipartisan support from the California Problem Solvers Caucus and was sponsored by Assemblymembers David Alvarez and Heath Flora.

Aemetis operates a 65 million gallon per year ethanol facility near Modesto in California’s Central Valley. The company is planning to invest $30 million in a mechanical vapor recompression system at its plant, which it projects will reduce natural gas usage by 80% when implemented in 2026.

The company expects this upgrade to improve its operational cash flow by $32 million annually after implementation. This improvement could be crucial for Aemetis, as InvestingPro analysis shows the company is currently burning through cash with a negative EBITDA of $34.3 million and carries a substantial debt burden of $478.6 million. The company’s current ratio of 0.06 indicates potential liquidity challenges.

California’s move aligns with several other states that have already approved E15 blends, which proponents say offer environmental benefits alongside cost savings for consumers. For investors following this development, InvestingPro offers comprehensive analysis with 10+ additional ProTips and detailed financial metrics in its Pro Research Report, helping make informed investment decisions in the renewable energy sector.

In other recent news, Aemetis reported its Q2 2025 earnings, which showed a larger loss than analysts had predicted. The company posted an earnings per share of -$0.41, missing the expected -$0.28. Revenue also fell short of expectations, coming in at $52.2 million compared to the forecasted $79 million. In addition to its earnings report, Aemetis has signed a $30 million contract with NPL Construction Co. for an energy efficiency upgrade at its Keyes, California ethanol facility. The project, which involves installing a Mechanical Vapor Recompression system, has secured approximately $19.7 million in tax credits and grants. Construction is planned to be completed by the second quarter of 2026. These developments reflect recent strategic moves by Aemetis as it navigates financial challenges.

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