Thursday, January 9, 2025
HomeAll NewsBiogas (CBG)Aemetis expands renewable natural gas production with new dairy digesters

Aemetis expands renewable natural gas production with new dairy digesters

Aemetis Biogas has expanded its operations with the commissioning of three new dairy digesters in December, increasing the total to 12. The new digesters are expected to produce 250,000 MMBtu of renewable natural gas (RNG) annually, contributing to the company’s goal of 550,000 MMBtu of RNG production by 2025.

Aemetis Chairman and CEO Eric McAfee described the expansion as a significant step for the company. “This addition will boost our RNG production capacity by 80% in the near term and drive revenue and income growth in 2025 and beyond,” he said.

McAfee also emphasized the importance of the recently implemented Section 45Z Production Tax Credit, which began on January 1, 2025. Designed to support domestic renewable fuel production, the tax credit is expected to further enhance the company’s financial performance.

In addition to RNG production, the company has signed agreements with 50 dairies and plans to use its Central California location to expand its feedstock sources for future digesters, further increasing capacity.

The company’s RNG production generates revenue from multiple sources, including:

California Low Carbon Fuel Standard (LCFS) credits

Federal Renewable Fuel Standard D3 RINs

Federal Section 45Z Production Tax Credits

Sales of renewable natural gas

Approval from the California Air Resources Board (CARB) for LCFS pathway certification is expected for seven additional digesters currently under review. Once approved, the company anticipates an 80% increase in LCFS credits for RNG from these digesters. The approval is expected by mid-2025.

When fully operational, the Aemetis Biogas Central Dairy Project is projected to produce over 1.6 million MMBtu of RNG annually and generate $250 million in revenue. This growth reinforces Aemetis’ role in supporting clean energy initiatives and sustainable agriculture.

For detailed information and further insights, please refer to BioEnergyTimes.com, which provides the latest news about the Biogas Industry 

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