Aemetis, Inc. (NASDAQ: AMTX) has announced the completion of initial construction on a multi-dairy anaerobic digester in Merced County, California, a project that underscores the company's commitment to renewable natural gas (RNG) production and greenhouse gas emission reduction. The facility, set to begin operations by the end of 2024, will process waste from approximately 14,000 dairy cows, producing over 200,000 MMBtu of RNG annually. This development is part of Aemetis Biogas' broader strategy to expand its production capacity and leverage innovative technologies for environmental sustainability.
The multi-dairy digester will collect waste from four dairies within a half-mile radius, connected to Aemetis' 36-mile biogas pipeline. Eric McAfee, Chairman and CEO of Aemetis, highlighted the project's potential to drive rapid revenue growth, benefiting from credits under the Low Carbon Fuel Standard and Production Tax Credits from the Inflation Reduction Act starting in January 2025. With the addition of this digester and two others, Aemetis' RNG production is expected to increase to around 550,000 MMBtu per year, sourced from 16 dairies.
Aemetis Biogas has ambitious plans beyond the current project, with agreements signed with 48 dairies and plans to incorporate an additional 27 into its biogas portfolio. The Aemetis Biogas Central Dairy Project, once fully operational, is projected to generate more than 1.6 million MMBtu of RNG annually, with expected annual revenues of $250 million. This expansion aligns with Aemetis' mission to replace petroleum-based products and reduce greenhouse gas emissions, supported by its diverse portfolio of renewable energy projects.
The company's initiatives, including the development of a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in California, position Aemetis as a key player in the transition to sustainable, low-carbon energy solutions. The completion of the multi-dairy digester represents a significant milestone in Aemetis' efforts to expand its renewable natural gas production, demonstrating the potential for agricultural waste to be transformed into valuable, environmentally friendly fuel sources. As global demand for cleaner energy grows, Aemetis' projects highlight the agricultural sector's role in contributing to a more sustainable energy landscape.
