Aemetis, Inc (NASDAQ: AMTX)

Aemetis, Inc. is an international renewable natural gas and renewable fuels company focused on the operation, acquisition, development, and commercialization of innovative technologies to produce low and negative carbon intensity renewable fuels that lower fuel costs and reduce emissions. The company builds a local circular bioeconomy using agricultural products and wastes to produce advanced renewable fuels that reduce greenhouse gas emissions and improve air quality. Its core activities include operating ethanol and biodiesel production facilities, developing dairy digester projects for renewable natural gas, and advancing sustainable aviation fuel and carbon capture initiatives.

Aemetis generates revenue through the sale of renewable fuels and associated environmental credits. Primary products include denatured fuel ethanol, wet distillers grains, distillers corn oil, condensed distillers solubles, undenatured alcohol, carbon dioxide, renewable natural gas, biodiesel, and refined glycerin. The company also earns revenue from federal Renewable Fuel Standard credits, California Low Carbon Fuel Standard credits, and federal Section 45Z production tax credits by selling these environmental attributes to third parties. Revenue is derived from sales to agricultural customers, transportation fuel markets, industrial users, and government oil marketing companies.

The company operates through the following segments: California Ethanol, California Dairy Renewable Natural Gas, and India Biodiesel.

• California Ethanol: This segment owns and operates a 65 million gallon per year capacity ethanol production facility in Keyes, California. In addition to low carbon renewable fuel ethanol, the Keyes Plant produces Wet Distillers Grains, Distillers Corn Oil, and Condensed Distillers Solubles, all sold as animal feed to local dairies and feedlots. The segment also sells CO₂ captured from ethanol fermentation to produce commercial grade CO₂ for the food, beverage, and other industries.

• California Dairy Renewable Natural Gas: This segment produces Renewable Natural Gas in central California using anaerobic digesters that process dairy waste. It includes a 36-mile biogas collection pipeline leading to a central RNG production facility and an interconnection to inject RNG into the utility natural gas pipeline for use as transportation fuel. The segment is building its own RNG fuel dispensing station, planned to begin operating in 2026, and is expanding with additional digesters under construction and agreements with over fifty dairies.

• India Biodiesel: This segment owns and operates a plant in Kakinada, India with a capacity to produce about 80 million gallons per year of high-quality distilled biodiesel from various vegetable oil and animal waste feedstocks. The Kakinada Plant also distills crude glycerin from biodiesel production into refined glycerin sold to the pharmaceutical, personal care, paint, adhesive, and other industries. The plant is one of the largest biodiesel production facilities in India and has developed proprietary technology to use lower-cost waste products as feedstock.

Aemetis holds a niche position in the renewable fuels industry by focusing on low and negative carbon intensity fuels, particularly in California where it produces ethanol amid competition from Midwestern and Brazilian imports. In the renewable natural gas market, it competes with other credit producers in D3 RINs and LCFS credit markets, leveraging its established dairy digester operations. In India, the Kakinada Plant competes with government-owned Oil Marketing Companies and private oil companies in the biodiesel blending market, relying on location, price, and quality to secure sales as a reliable supplier.

Aemetis serves a diverse customer base including local dairies and feedlots that purchase Wet Distillers Grains and Distillers Corn Oil from the Keyes Plant. The company sells ethanol to J. D. Heiskell, which resells to marketers, and has designated Murex LLC to purchase and resell ethanol to fuel blenders. A. L. Gilbert Co. distributes WDG from the Keyes Plant, and an industrial gas company purchases CO₂ from the facility. For renewable natural gas, the company sells RNG into the utility pipeline and environmental credits through industry brokers. In India, biodiesel and refined glycerin are sold to government Oil Marketing Companies including Hindustan Petroleum, Bharat Petroleum, and Indian Oil Corporation.