Aemetis announces first LCFS credit sales from its biogas subsidiary

In California, Aemetis, Inc. announced revenues from its first sale of California Low Carbon Fuel Standard (LCFS) credits generated by its subsidiary, Aemetis Biogas LLC. The environmental credits were sold in a single transaction to a market maker and the sale price has been paid in full. Aemetis Biogas produces renewable natural gas (RNG) from dairy manure digesters located in California’s Central Valley.

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 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. Producers utilize the Temporary Pathway while CARB is processing their pathway applications.

The LCFS program is a mechanism for companies that are obligated to comply with mandates to reduce carbon emissions in California by purchasing credits from biofuels producers. The program requires oil companies and other fuel blenders to provide LCFS credits for gallons of gasoline, diesel, and other petroleum products sold in California.

On March 21, 2024, CARB will hold a public hearing to review expanded LCFS credit mandates for a twenty-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. Lower emission renewable fuels include renewable natural gas (RNG) from dairy methane that can replace diesel in trucks and buses, produce renewable electricity for electric vehicles, and produce hydrogen for forklifts, cars and trucks.