Aemetis, a renewable natural gas and renewable fuels company, has announced the full deployment of the $25 million in funding provided under a USDA-guaranteed loan for its Aemetis Biogas 1 LLC (AB1) project company. The AB1 project company produces renewable natural gas (RNG) from dairy biomethane digesters in California’s Central Valley, with operations at eight dairies and agreements in place with 37 dairies. The company has also obtained $23 million in grants to date.
The USDA-guaranteed funding required monthly draws for project construction, with Aemetis Biogas investing $30 million in project equity. The LCFS program, which requires oil companies and other fuel blenders to provide credits for gallons of gasoline, diesel, and other petroleum products sold in California, is a mechanism for companies to reduce carbon emissions. Aemetis Biogas is expanding by constructing additional digesters, with a goal of operating digesters supplied by 18 dairies by the end of 2024.
The funding received from the 20-year USDA-guaranteed financings will allow Aemetis Biogas to expand the capture of biomethane at dairies, reduce methane emissions, and replace fossil diesel fuel in trucks in California.
“Aemetis Biogas is actively growing by constructing additional digesters with a goal of operating digesters supplied by 18 dairies by the end of 2024,” stated Eric McAfee, Chairman and CEO of Aemetis. “The funding received by Aemetis Biogas from the 20-year USDA-guaranteed financings allows us to expand the capture of biomethane at dairies to improve local air quality, reduce the global warming effects of methane emissions, and replace fossil diesel fuel in trucks in California.”
