The biogas subsidiary of US-based Aemetis, Inc. completed $1.6mn in combined sales of California Low Carbon Fuel Standard (LCFS) credits and federal Renewable Identification Numbers (D3 RINs) in April, according to a statement released on May 1. These revenues correspond to credit generation for Q4 2024 at a default carbon intensity rate of -150.
Ongoing operational expansion
Aemetis Biogas has submitted an application to the California Air Resources Board (CARB) for the approval of seven new digesters. This application is in its final review stage, with approval expected before the next quarterly credit sale period. These facilities are expected to reach a carbon intensity below -350, which would result in more than a 120% increase in the volume of LCFS credits generated compared to the default rate.
The company plans to integrate four new dairy farms into its existing network during this quarter. As of now, Aemetis Biogas has signed contracts with 50 dairy farms and operates 11 digesters processing waste from 12 of them. An additional digester combining waste from four farms is currently being commissioned for Q2 2025.
Pipeline network and tax credit development
A total of 36 miles of biogas pipeline has been installed, with environmental approvals in place to extend the infrastructure to 60 miles as new digesters come online. Revenue from dairy-based renewable natural gas comes from fuel sales, LCFS credits, D3 RINs, and federal tax credits under sections 45Z and 48.
Over the past 18 months, Aemetis has generated $70mn from the sale of $83mn in Section 48 investment tax credits to two corporate buyers. Further sales of these credits are expected in the coming months alongside the completion of additional digesters. In addition, since January 2025, the company has begun generating 45Z production tax credits from its renewable natural gas output, with the first credit sales expected by summer 2025.
