Aemetis Completes 20 Miles of Biogas Pipeline and Receives Merced County Approval for Final Stage of Main Pipeline Construction
Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on below zero carbon intensity products, today announced the completion of 20 miles of biogas pipeline and approval for construction of the remaining biogas pipeline in Merced County, California. Construction of the 39-mile main biogas pipeline is on schedule for completion in Q4 2022. “Issuance of the Phase Two Pipeline permit and construction of the main pipeline in Merced County is a very significant milestone for the Aemetis Biogas RNG project,” said Andy Foster, President of Aemetis Biogas, Inc. “California and Merced County recognize that the adoption of dairy biogas as a negative carbon intensity fuel to replace diesel in heavy trucks and buses is essential if we are to make strides to reduce Greenhouse Gas emissions. Aemetis continues to rapidly deploy the infrastructure necessary to connect our network of dairy digesters and increase the production of carbon negative dairy renewable natural gas.”
This project milestone allows the installation of biogas pipeline in Merced County for construction of a pipeline for a total of 39 miles from the Aemetis ethanol plant in Keyes, California to dairies in Stanislaus County and Merced counties. The pressurized pipeline conveys conditioned, pressurized biogas from dairies to the Company’s centralized gas cleanup facility and the Pacific Gas & Electric (PG&E) interconnection system to inject renewable natural gas (RNG) into the gas utility pipeline. At the Keyes plant, the biogas is upgraded to negative carbon intensity RNG for use as a transportation fuel in cars, trucks, and buses. The RNG is either delivered into the PG&E utility pipeline located onsite at the Aemetis ethanol plant, dispensed to trucks at fueling stations across California or at the RNG fueling station being built at the Aemetis plant.
Previously, Aemetis announced that it received approval for the biogas pipeline from the Merced County Board of Supervisors for the Phase Two pipeline, as well as an Initial Study/Mitigated Negative Declaration (IS/MND) for the entire pipeline project, the key approval necessary to meet the permitting requirements of the California Environmental Quality Act (CEQA) prior to pipeline construction. The CEQA approval confirms that mitigation measures in the biogas project will avoid or mitigate any impacts on the environment. The Company completed the permitting for 20 miles of biogas pipeline in Stanislaus County in August 2021 to connect dairies to the Aemetis biogas cleanup facility at the ethanol facility. The initial four-mile Phase 1 pipeline project was completed and commissioned in the third quarter of 2020 in conjunction with the completion of the Company’s first two dairy digesters, and the 20 miles of Stanislaus County pipeline has now been completed. Additional pipeline will be added to connect digesters to the main biogas pipeline.
Once complete, the Aemetis biogas digesters and clean-up facility will produce more than 1.65 million MMBtu of RNG each year. Aemetis received a negative -426 Carbon Intensity pathway for biogas from the company’s first two dairy digesters, which is currently being utilized as process energy at the ethanol facility. When built, the system will eliminate emissions from approximately 1 million cars per year and eliminate about 5 million metric tonnes of CO2 per year. The pipeline project and the $12 million biogas cleanup facility are funded in part by a $4.2 million grant from the California Energy Commission.
Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today’s infrastructure. Aemetis Carbon Zero products include zero carbon fuels that can “drop in” to be used in airplane, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle.
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals.
Safe Harbor Statement
This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the development and construction of the biogas pipeline, biogas digesters, our compliance with governmental programs, and our ability to access markets and funding to execute our business plan. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021 and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.