Aemetis, Inc., a renewable natural gas and renewable fuels company focused on negative carbon intensity products, has announced the deployment of the entire $25 million (€22.9 million) of funding provided under the previously announced USDA-guaranteed loan for its Aemetis Biogas 1 LLC (AB1) project company.
Aemetis Biogas produces renewable natural gas (RNG) from dairy biomethane digesters located in California’s Central Valley.
Aemetis Biogas operates digesters supplied by eight dairies and has agreements with 37 dairies, operates a centralised biogas-to-RNG production facility with utility gas pipeline interconnection, and has completed 36 miles of biogas pipeline with a total of 60 miles already permitted under CEQA.
In addition to the USDA-guaranteed funding, Aemetis Biogas invested $30 million (€27.5 million) of project equity and has obtained $23 million (€21.1 million) of grants to date.
The Aemetis AB1 loan was guaranteed by the USDA under the Renewable Energy for America (REAP) loan guarantee programme that required monthly draws of funding for project construction.
Prior to obtaining the loan, the AB1 project company had already invested the entire equity amount required by the REAP programme.
For each operating digester, Aemetis has completed testing and verification as well as submitted an application for certified carbon intensity Pathways to CARB at lower carbon intensity values than the temporary Pathway based on actual data from biogas production and dairy operations.
The certified Pathway scores are expected to increase LCFS revenues by more than 80% for future LCFS credit sales after the Pathways are approved, compared to the number of LCFS credits issued under the temporary Pathway carbon intensity value. “Aemetis Biogas is actively growing by constructing additional digesters with a goal of operating digesters supplied by 18 dairies by the end of 2024,” stated Eric McAfee, chairman and CEO of Aemetis.
“The funding received by Aemetis Biogas from the 20-year USDA-guaranteed financings allows us to expand the capture of biomethane at dairies to improve local air quality, reduce the global warming effects of methane emissions, and replace fossil diesel fuel in trucks in California.”
Aemetis Biogas completes construction funding from $25 million USDA loan
