Aemetis to Benefit From EPA’s Approval of 15 Percent Ethanol Blend

Core Insights - The U.S. Environmental Protection Agency (EPA) has issued a waiver allowing the continued sale of a 15 percent ethanol blend (E15), which is expected to increase demand and sales for Aemetis, Inc. [1][2] - The average ethanol blend in the U.S. was 10.4% in 2024, with a total of 14.2 billion gallons, and the adoption of E15 could lead to a 50% increase in the ethanol market [1][2]. Group 1: Impact of E15 Adoption - The EPA's decision to allow E15 sales is anticipated to lower gasoline prices for consumers, potentially saving them up to $0.20 per gallon, translating to approximately $2.7 billion in savings annually [2][4]. - The E15 blend is expected to help reduce carbon emissions and support rural economies by creating jobs [2][4]. Group 2: Legislative Support - Senate Bill 2707, known as the "Nationwide Consumer and Fuel Retailer Choice Act," has been introduced to propose the permanent sale of E15 across the U.S., excluding states like California with their own regulations [5]. - The E15 blend is approved for use in over 95% of vehicles currently on the road, indicating broad market acceptance [5]. Group 3: California's Unique Position - California remains the only state not to approve the E15 blend, which typically has the highest gasoline prices in the U.S. [3]. - Governor Gavin Newsom has requested the California Air and Resources Board to expedite the study necessary for adopting E15 in the state [3]. Group 4: Company Overview - Aemetis, Inc. is focused on renewable natural gas and biofuels, operating a 65 million gallon per year ethanol production facility in California and an 80 million gallon per year biofuels facility in India [6]. - The company is also developing sustainable aviation fuel and renewable diesel biorefineries, along with a carbon sequestration project in California [6].