Aemetis Secures Air Permits for $32M Annual Cash Flow Boost in California
Aemetis announced that the Authority To Construct air permits have been issued by the San Joaquin Valley Air Pollution Control District for the mechanical vapor recompression, MVR, energy efficiency project at the Aemetis 65 million gallon per year ethanol plant in Keyes, California, CA. The MVR project is expected to increase cash flow from operations at the Keyes ethanol plant by $32 million per year after the completion of construction in mid-2026 from energy cost reductions, increased income from Low Carbon Fuel Standard credits, and an increase in transferable Section 45Z tax credits.
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Aemetis Sells $17 Million in Federal Clean Energy Tax Credits
- Tax Credit Sale: Aemetis' subsidiary Aemetis Biogas LLC successfully sold $17 million in federal clean energy tax credits, including $12 million from an Investment Tax Credit and $5 million from a Production Tax Credit, which is expected to generate approximately $15 million in net cash flow, significantly enhancing the company's financial flexibility.
- New Cash Flow Source: This transaction marks the company's first sale of a Section 45Z Clean Fuel Production Credit from dairy RNG, with expectations for additional similar transactions in the future, further driving cash flow growth from renewable natural gas production and enhancing the company's market competitiveness.
- Future Outlook: Aemetis anticipates that future 45Z tax credits will increase significantly due to rising production volumes and enhanced credit values mandated by the One Big Beautiful Bill Act, further solidifying the company's financial foundation and supporting production expansion.
- Strategic Execution: The company has completed $95 million in Investment Tax Credit transactions and is executing its tax credit monetization strategy with today's first Section 45Z sale, which is expected to become a vital source of operating cash flow to support production expansion and new job creation.
Wednesday's Underperformers: Metals & Mining, Oil & Gas Refining & Marketing Stocks
Market Performance: Oil and gas refining and marketing shares are down approximately 0.8% on Wednesday, with Delek US Holdings and Aemetis leading the decline at 3.9% and 3.6%, respectively.
Sector Laggards: The metals and mining sector, along with oil and gas refining and marketing stocks, are identified as laggards in the market on this day.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Video Content: A video segment highlights the sector laggards, specifically focusing on the performance of metals and mining, as well as oil and gas refining and marketing stocks.
