Aemetis Inc., a renewable natural gas and renewable fuels company focused on negative carbon intensity products, closed the sale of $53 million of Inflation Reduction Act (IRA) investment tax credits generated by its subsidiary Aemetis Biogas LLC to a corporate purchaser on Sept. 29, 2023. This sale is the company’s first IRA tax credit transaction.&nbsp; The Section 48 investment tax credits were generated from biogas projects built by Aemetis Biogas, including six diary digesters, a biogas pipeline and a renewable natural gas (RNG) production facility.The Inflation Reduction Act was signed into law in August 2022, and provides for the issuance of transferable federal income tax credits for certain renewable fuel projects and products.“We believe that this $53 million tax credit sale is the largest IRA tax credit transaction in the dairy biogas industry, demonstrating the transferability of tax credits under the federal Inflation Reduction Act and the ability of renewable fuels projects to generate funding from IRA tax credits to support investments,” stated Eric McAfee, chairman and CEO of Aemetis. “The Aemetis Five Year Plan is expected to qualify for more than $800 million of IRA investment and production tax credits during the next four years to support our biogas projects, CO2 re-use by our ethanol plant, the construction of our sustainable aviation fuel plant and CO2 sequestration.”Aemetis Biogas is building anaerobic digesters at California dairies to capture biomethane from animal waste. Aemetis has seven operating digesters and is actively growing with an additional five digesters under construction and a total of the 37 dairies under contract to supply animal waste. After removal of contaminants and pressurization of gas at the dairy, a biogas pipeline connects the dairies to a centralized facility located at the Aemetis Keyes ethanol plant where the biogas is upgraded into below zero carbon intensity RNG.&nbsp; The RNG is injected into PG&amp;E’s natural gas pipeline for delivery to transportation fuel customers in California.Aemetis is also building its own RNG fueling station at the Keyes ethanol plant to fuel trucks with locally produced renewable natural gas that provides a 90 percent reduction in emissions compared to petroleum diesel fuel.Approximately 25 percent of the methane emissions in California are emitted from dairy waste lagoons. When fully built, the Aemetis biogas project plans to capture methane from the waste produced by more than 150,000 cows at dairy farms in California, producing 1,650,000 MMBtu of renewable natural gas from captured dairy methane each year. The project is designed to reduce greenhouse gas emissions equivalent to an estimated 6.8 million metric tons of carbon dioxide over ten years, equal to removing the emissions from approximately 150,000 cars per year.&nbsp;

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Aemetis Inc. closed the sale of $53 million of IRA investment tax credits generated by its subsidiary Aemetis Biogas LLC to a corporate purchaser on Sept. 29, 2023. The Section 48 investment tax credits were generated from biogas projects.

Aemetis Biogas closes $53 million sale of IRA tax credits

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