California Governor Newsom Signs AB30 Approving 15% Ethanol Blend that Increases Ethanol Market by more than 600 million Gallons Per Year

Core Insights - California Governor Gavin Newsom signed Assembly Bill 30 (AB30), allowing a 15% ethanol blend in gasoline, which is expected to increase the ethanol market in California by over 600 million gallons per year [3][4]. Industry Impact - The approval of E15 is projected to decrease gasoline prices by $2.7 billion annually, saving consumers approximately 20 cents per gallon [3][4]. - The bill aims to enhance renewable energy and environmental goals while providing lower-cost, high-octane renewable fuel [4]. Company Developments - Aemetis, Inc. operates a 65 million gallon per year ethanol facility in California, which will benefit from the increased blending of ethanol into gasoline [5]. - Aemetis plans to invest $30 million in a mechanical vapor recompression (MVR) system to reduce natural gas usage by 80% at its Keyes plant, which is expected to improve cash flow from operations by $32 million annually after implementation in 2026 [6][7].