Aemetis Registrations Approved by the IRS for 45Z Production Tax Credits

Core Insights - Aemetis, Inc. is set to increase its renewable natural gas (RNG) production by 80% to 550,000 MMBtu per year, starting January 1, 2025, benefiting from Production Tax Credits (PTCs) under the Inflation Reduction Act (IRA) [1][4]. Production and Tax Credits - The company has received IRS approval for Excise Tax Registration for Section 45Z PTCs, which incentivizes the production of low carbon intensity fuels [1][2]. - The 45Z PTC offers a tax credit of $1.00 per gallon for every 50 carbon intensity points reduction below a threshold of positive 50, with Aemetis expected to generate a tax credit of$8.50 per gallon equivalent for its dairy RNG with a negative carbon intensity of 380 [3][4]. Operational Expansion - Aemetis Biogas is expanding its operations with a total of twelve digesters processing waste from sixteen dairies, aiming for a production capacity of 550,000 MMBtu per year by 2025, up from the current 300,000 MMBtu [4]. - The dairies in the Aemetis Biogas Central Dairy Project are projected to produce over 1.6 million MMBtu per year, generating annual revenues of $250 million [6]. Financial Background - The company has previously sold$63 million in investment tax credits under the IRA, resulting in $55 million in cash proceeds after costs [5]. - The expansion of the dairy digesters is supported by$50 million in USDA guaranteed loans, with an additional $75 million currently in process [5].