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

Aemetis, a renewable natural gas and fuels company, has capitalized on federal incentives by selling $7.7 million in investment tax credits generated from its dairy biogas digester projects. The company received $6 million in net cash proceeds after transaction costs, representing a significant financial milestone in renewable energy infrastructure development.

The tax credits were created under the Inflation Reduction Act (IRA), which provides transferable federal income tax credits for investments in renewable fuel projects. Aemetis generated these credits through its dairy biogas digesters constructed and placed in service in the fourth quarter of 2024, demonstrating the growing economic viability of methane capture technologies.

The company's biogas project represents a critical approach to reducing greenhouse gas emissions in California's agricultural sector. Approximately 25% of methane emissions in the state originate from dairy waste lagoons without capture systems. Aemetis aims to address this environmental challenge by implementing comprehensive methane capture infrastructure.

Currently operating twelve dairy digesters, 36 miles of biogas pipeline, and a central biogas to renewable natural gas (RNG) production facility, Aemetis expects to produce 550,000 MMBtu of RNG annually. The company's long-term vision includes expanding the project to capture methane from over 150,000 dairy cows, potentially reducing greenhouse gas emissions by an estimated 6.8 million metric tons of carbon dioxide over ten years.

Eric McAfee, Chairman and CEO of Aemetis, emphasized the strategic importance of these tax credit sales, noting that the proceeds support domestic energy production and reduce dependence on imported crude oil. The company anticipates additional investment tax credit sales from ongoing biogas digester and pipeline projects expected to be completed in the second quarter of 2025.

This initiative underscores the potential of innovative renewable energy technologies to simultaneously address environmental challenges, create economic opportunities, and support sustainable agricultural practices. By transforming dairy waste into a valuable energy resource, Aemetis is demonstrating a scalable model for reducing methane emissions while generating renewable energy.