Milestone Reached: Aemetis Biogas Finalizes Initial Build of Multi-Dairy Digester

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Aemetis Inc., a leader in renewable natural gas and fuels with a strong focus on low and negative carbon intensity products, announced on October 3 that its subsidiary, Aemetis Biogas, has completed the initial phase of constructing a multi-dairy anaerobic digester in Merced County, California. This innovative facility is set to process waste from approximately 14,000 dairy cows and is projected to begin operations by the end of 2024. Once operational, the digester will generate over 200,000 MMBtu of renewable natural gas (RNG) annually. It will serve four nearby dairies, each located within a half-mile radius, and is connected to Aemetis’ 36-mile biogas pipeline.

Eric McAfee, Chairman and CEO of Aemetis, highlighted that Aemetis Biogas is poised for a significant production boost this quarter, fueled by contributions from the multi-dairy digester and two additional digesters. He noted the company’s excitement over the rapid growth in revenue from these new digesters, which are supported by Low Carbon Fuel Standard credits and Production Tax Credits available through the Inflation Reduction Act starting in January 2025. These incentives will further drive the construction of additional digesters for more dairies.

At present, Aemetis generates around 300,000 MMBtu of RNG annually through its 10 dairy-powered anaerobic digesters. With the addition of the multi-dairy digester and two others, the company’s annual RNG output will rise to approximately 550,000 MMBtu from 16 dairies. Looking ahead, Aemetis Biogas has secured agreements with 48 dairies and plans to expand its portfolio by adding another 27. Upon full implementation, the Aemetis Biogas Central Dairy Project is expected to produce more than 1.6 million MMBtu of RNG each year, contributing to projected annual revenues of $250 million.