Aemetis Biogas Generates $7.7 Million in Investment Tax Credits from Renewable Natural Gas Projects

Aemetis, a renewable natural gas and fuels company, has received $6 million in net proceeds from the sale of $7.7 million in investment tax credits generated by its dairy biogas digester projects. The sale, facilitated through the Inflation Reduction Act (IRA), represents a significant milestone in the company's renewable energy development strategy.

The tax credits were created by investments in dairy biogas digesters constructed and placed into service in the fourth quarter of 2024. The company has already sold tax credits totaling $17 million, with additional credits expected from ongoing biogas and pipeline projects anticipated to be completed in the second quarter of 2025.

Aemetis is addressing a critical environmental challenge in California, where approximately 25% of methane emissions originate from dairy waste lagoons. The company's biogas project aims to capture methane from over 150,000 cows, potentially reducing greenhouse gas emissions by an estimated 6.8 million metric tons of carbon dioxide over ten years.

The current infrastructure includes twelve dairy digesters, 36 miles of biogas pipeline, and a central biogas to renewable natural gas (RNG) production facility. Aemetis projects producing 550,000 MMBtu of RNG annually from existing and planned projects, demonstrating a significant contribution to sustainable energy production.

By converting dairy waste into renewable natural gas, Aemetis is not only generating alternative revenue streams through tax credit sales but also providing a sustainable solution to agricultural waste management and greenhouse gas reduction.