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Aemetis increases renewable gas output by 55% in March

Aemetis Biogas recorded a 55% increase in renewable natural gas production in March, supported by favourable weather conditions and the expansion of its digester project in California.

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Aemetis Biogas, a subsidiary of the US-based company Aemetis Inc., announced a 55% increase in its monthly renewable natural gas (RNG) production in March compared to February. This growth is attributed to improved weather conditions that enhanced microbial activity in anaerobic digesters used to convert dairy waste into biomethane. The company expects this level of output to continue throughout the summer, a season typically more conducive to biological efficiency.

Rising output and new revenue streams

Concurrently, Aemetis Biogas completed the sale of credits under California’s Low Carbon Fuel Standard (LCFS) programme, along with D3 Renewable Identification Numbers (RINs), at the end of the first quarter. The LCFS credits were generated from the dispensing of RNG in the fourth quarter of 2024, while the D3 RINs were linked to RNG produced and sold in February 2025. These transactions help diversify the company’s income sources by capitalising on regulatory credit mechanisms.

According to Eric McAfee, Chairman and Chief Executive Officer of Aemetis Inc., the company is finalising construction of several additional digesters that will process waste from four more dairies in the coming months. This development aligns with its strategy to increase revenue from both direct energy sales and marketable tax credits under Section 45Z of the US federal tax code.

Digester expansion and regulatory outlook

Aemetis Biogas is also awaiting LCFS pathway approvals for seven dairy digesters from the California Air Resources Board (CARB), the state’s regulatory authority. Approval is expected before the end of the second quarter and is projected to generate approximately $6mn in additional annual revenue based on current LCFS credit prices.

CARB is finalising amendments to its LCFS regulation, originally proposed in November 2024, with a fifteen-day public comment period launched last Friday. These regulatory changes are expected to significantly boost demand for LCFS credits, thereby driving up their market value. Aemetis Biogas anticipates a proportional increase in LCFS revenue, potentially reaching up to 300% more per British thermal unit (MMBtu) of RNG produced.

Targeting large-scale output

The Aemetis Biogas Central Dairy Digester Project, located near Modesto, California, connects 50 dairy farms that have signed supply agreements for organic waste. Upon completion, the project is expected to generate 1.65mn MMBtu of RNG annually from domestically sourced animal waste. This production is intended to replace mostly imported diesel fuel consumed by trucks covering 77 million miles annually in California.

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