Aemetis Biogas also finalized a sale of Low Carbon Fuel Standard (LCFS) credits and D3 Renewable Identification Numbers (RINs) at the end of the first quarter. The LCFS credits stem from RNG used as transportation fuel in the last quarter of 2024, recorded under the California Air Resources Board (CARB) process. The D3 RINs relate to RNG produced and dispensed in February 2025, boosting revenue streams.
Eric McAfee, chairman and CEO of Aemetis, stated: “Aemetis Biogas uses animal waste feedstock to produce domestic energy which is not directly impacted by import/export tariffs. The significant 55% increase in monthly RNG production in March compared to February is on track with our 2025 production plan and generates proportionally larger LCFS and D3 RIN revenues, as well as Section 45Z sellable tax credits.” He added that construction of digesters for four more dairies is nearing completion, set to begin operations soon, further expanding RNG output and investment tax credit sales.
The company is finalizing LCFS pathway approvals for seven dairy digesters with CARB, expected by the end of the second quarter. This approval could add approximately $6 million annually in LCFS credit revenue at current rates. Meanwhile, CARB is refining its November 2024 LCFS amendments, with final proposed regulations released for a 15-day comment period. These changes are anticipated to increase demand for LCFS credits, potentially tripling Aemetis Biogas’s LCFS revenue per million British thermal units (MMBtu) of RNG.
Aemetis Biogas is expanding its operations near Modesto, California, building digesters and pipelines to capture methane from 50 dairies under the Central Dairy Digester Project. Once fully operational, this initiative is projected to produce 1.65 million MMBtu of dairy RNG yearly. With California importing over 75% of its crude oil for diesel, the project aims to replace much of this fuel—used by trucks driving 77 million miles annually—with locally produced RNG from domestic waste.
The increased production aligns with Aemetis’s focus on renewable fuels for domestic consumption, reducing reliance on imported diesel. The company’s growth in RNG output, alongside upcoming digester completions and regulatory approvals, positions it to meet rising demand for sustainable energy solutions in California. This progress supports both environmental goals and revenue growth through credits and tax incentives.
