Company: AMTX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033667
Chunk: 94

Company: AEMETIS, INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1F
Chunk 94
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  We completed construction of four new digesters in 2024 and one new digester in 2025. We now have twelve operating digesters that receive feedstock from fifteen dairies and receive the correspondingly higher cash flows from the increased number of operating facilities.
    
   Construct New Digesters.  We plan to continue to build new dairy digesters that increase cash flow as allowed by capital availability. We have agreements with over fifty dairies and expect the next set of digesters to begin producing biogas in the second quarter of 2026. We are seeking debt from a variety of sources to facilitate additional digester construction.
    
   Increase LCFS Credit Revenue.  In the second quarter of 2025, the California Air Resource Board ("CARB") approved provisional pathways for seven dairy locations, which is expected to increase our LCFS credit revenue from biogas we produce from those dairies by about 160% starting in the fourth quarter of 2025, compared to the temporary pathways that previously applied. We still generate LCFS credits under temporary pathways at five operating digesters and expect LCFS revenue to increase further as we obtain more provisional LCFS pathways for those dairies. In addition, CARB's recently approved amendments to the LCFS regulation became effective  July 1, 2025, which are expected to reduce the oversupply of LCFS credits and lead to higher credit prices in the future.
    
   Monetize New Section 45Z Tax Credits.  Our RNG production started earning Section 45Z production tax credits effective  January 1, 2025, and we are in the process of monetizing the credits earned so far. The recent federal tax and budget legislation referred to as the "One Big Beautiful Bill" that was enacted in  July 2025 contains provisions that are expected to increase our future income from Section 45Z tax credits for RNG production, including an increase in the credit amount earned for each MMBtu of RNG we produce and an extension of the term of the credits to a total of five years.
    
   India Biodiesel
    
   Continue Sales to OMCs. We plan to continue to operate the Kakinada Plant to produce biodiesel and glycerin and to sell the biodiesel to government-owned Oil Marketing Companies ("OMCs") to help them achieve government mandates to increase