Aemetis Biogas Expands Renewable Natural Gas Production with New Multi-Dairy Digester

Aemetis, Inc., a leading renewable fuels company, has announced the completion of initial construction on a multi-dairy anaerobic digester in Merced County, California. This new facility, designed to process waste from approximately 14,000 dairy cows, is expected to begin operations by the end of 2024 and produce over 200,000 MMBtu of renewable natural gas (RNG) annually.

The multi-dairy digester represents a significant expansion of Aemetis' biogas production capabilities. It will collect waste from four nearby dairies, each located within half a mile of the facility, and is connected to the company's 36-mile biogas pipeline. This strategic placement allows for efficient waste collection and gas distribution, maximizing the environmental and economic benefits of the project.

Eric McAfee, Chairman and CEO of Aemetis, highlighted the importance of this development, stating that the company is on track to significantly increase production in the coming quarter. The new digester, along with two others, will boost Aemetis' total RNG production from the current 300,000 MMBtu per year to approximately 550,000 MMBtu annually, sourced from 16 dairies.

This expansion is part of Aemetis' broader strategy to reduce greenhouse gas emissions and capitalize on incentives provided by environmental policies. The company stands to benefit from credits under the Low Carbon Fuel Standard and Production Tax Credits from the Inflation Reduction Act, starting in January 2025. These incentives are expected to support further construction of digesters for additional dairies.

The multi-dairy digester project is just the beginning of Aemetis' ambitious plans. The company has signed agreements with 48 dairies and aims to add another 27 to its biogas portfolio. Once fully operational, the Aemetis Biogas Central Dairy Project is projected to generate more than 1.6 million MMBtu of RNG per year, potentially yielding annual revenues of $250 million.

This development is significant for several reasons. First, it represents a major step forward in the production of renewable natural gas, a cleaner alternative to traditional fossil fuels. By converting dairy waste into usable energy, Aemetis is not only reducing methane emissions from agriculture but also providing a sustainable fuel source for various applications.

Second, the project demonstrates the viability of large-scale biogas production from agricultural waste, potentially serving as a model for similar initiatives across the country. As the demand for renewable energy sources grows, projects like this could play a crucial role in meeting climate goals and reducing dependence on fossil fuels.

Finally, the economic implications of this project are substantial. The projected annual revenue of $250 million from the full Central Dairy Project underscores the potential profitability of renewable natural gas production. This could encourage further investment in the sector, driving innovation and job creation in the renewable energy industry.

As Aemetis continues to expand its biogas operations, the company is positioning itself as a key player in the transition to a low-carbon economy. The completion of this multi-dairy digester marks a significant milestone in this journey, with the potential to transform waste management practices in the agricultural sector while contributing to the fight against climate change.