Aemetis, a renewable natural gas and renewable fuels company focused on negative carbon intensity products, has announced the recognition of revenues from its first sale of California Low Carbon Fuel Standard (LCFS) credits generated by its subsidiary, Aemetis Biogas LLC.
Aemetis Biogas has agreements with 37 dairies, operates digesters serving eight dairies, operates a central biogas-to-RNG production facility with utility gas pipeline interconnection, and has completed 36 miles of biogas pipeline with a total of 60 miles.
The environmental credits were sold in a single transaction to a market maker and the sale price has been paid in full.
The sale was completed for LCFS credits issued by the California Air Resources Board (CARB) using the negative 150 Carbon Intensity Temporary Pathway.
For each dairy, Aemetis said it has completed testing and verification as well as submitted applications for Provisional Pathways to CARB at lower carbon intensity scores based on actual data from biogas production and dairy operations.
The Provisional Pathway scores are expected to increase LCFS revenues by more than 80% for future LCFS credit sales after the Provisional Pathways are approved, compared to the number of LCFS credits issued under the Temporary Pathway, according to Aemetis.
Producers utilise the Temporary Pathway while CARB is processing their pathway applications.
On March 21, CARB will hold a public hearing to review expanded LCFS credit mandates for a 20-year period through year 2045.
The staff recommendation setting forth the higher mandates stated an intention to provide stable policy and strong LCFS credit prices to attract long term funding to build production facilities for lower-emission, renewable fuels to replace petroleum fuels in California.
“Aemetis Biogas is actively growing by constructing additional digesters with a goal of 18 operating dairy digesters by the end of this year,” stated Eric McAfee, chairman and CEO of Aemetis. “The cash proceeds received by Aemetis Biogas from the sale of LCFS credits is a meaningful milestone that contributes to our further investments in capturing 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.”
Aemitis enjoys expanded revenues from first sale of LCFS credits
