Aemetis receives permit to build 21 miles of biogas pipeline

By Aemetis Inc. | August 09, 2021

Aemetis Inc., a renewable natural gas and renewable fuels company focused on below zero carbon intensity products, on Aug. 6 announced the final permit has been approved to begin construction of the next 21 miles of the Aemetis Biogas Phase 2 pipeline in Stanislaus County, California.

“Issuance of the Phase Two Pipeline county road encroachment permit is a very significant milestone for the Aemetis Biogas RNG project,” said Andy Foster, president of Aemetis Biogas, Inc. “Having now cleared the two major permitting steps required to build the next 21 miles of biogas pipeline, we are poised to rapidly deploy the infrastructure necessary to connect our network of dairy digesters and accelerate the adoption of dairy biogas as a negative carbon intensity fuel to replace diesel in heavy trucks and buses.”

This significant project milestone allows the installation of biogas pipeline in Stanislaus County roads for construction of a pipeline that extends the existing 4 mile pipeline by an additional 21 miles. The pipeline will convey conditioned biogas from dairies to the Company’s centralized gas cleanup facility which is currently under construction at the Aemetis Advanced Fuels Keyes ethanol plant.

At the Keyes plant, the biogas will be upgraded to negative carbon intensity (CI) renewable natural gas (RNG) for use as transportation fuel in trucks and buses. The RNG will be either delivered into the PG&E utility pipeline located onsite at the Aemetis ethanol plant, dispensed to trucks at the RNG fueling station being built at the Aemetis plant, or used as process energy in the Aemetis facility to replace petroleum-based natural gas.

The Biogas Pipeline Encroachment Permit was issued by the Stanislaus County Department of Public Works. Previously, Aemetis announced that it received environmental approval for 32 miles of biogas pipeline from the Stanislaus County Board of Supervisors for the Phase Two pipeline project’s Initial Study/Mitigated Negative Declaration, the key approval necessary to meet the permitting requirements of the California Environmental Quality Act prior to pipeline construction. The CEQA approval confirms that mitigation measures in the biogas project will avoid or mitigate any impacts on the environment.

The Company is completing the permitting process for 13 miles of additional biogas pipeline in Merced County to connect additional dairies to the Aemetis biogas cleanup facility at the ethanol facility. The initial four-mile Phase 1 pipeline project was completed and commissioned in the third quarter of 2020 in conjunction with the completion of the Company’s first two dairy digesters.

Once complete, the biogas clean-up hub will produce more than 1 million MMBtu of RNG. Recently, Aemetis received a-426 CI score for gas from the company’s first two dairy digesters, which is currently being utilized as process energy at the ethanol facility. Additionally, the system will displace 6.88 million diesel gallon equivalents (DGE) and eliminate 2.63 million metric tons of CO2 equivalents per year. The $12 million pipeline project and the $12 million biogas cleanup facility are funded in part by a $4.2 million grant from the California Energy Commission.