Company: AMTX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025271
Chunk: 30

Company: AEMETIS, INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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scaling back throughput by about 15%.
    
   Reduce Natural Gas Use and Reduce Ethanol Carbon Intensity. We are constructing a Mechanical Vapor Recompression ("MVR") system that will reduce the Keyes Plant's natural gas consumption by about 80% and lower the carbon intensity of the ethanol produced at the Plant. This will reduce overall fuel costs and volatility and will increase income from LCFS credits and Section 45Z tax credits. The MVR project is expected to become operational in the first half of 2026.
    
   Monetize New Section 45Z Tax Credits. The Keyes Plant started earning Section 45Z tax credits effective  January 1, 2025, and we are in the process of monetizing the credits that have been 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 ethanol production, including an increase in the credit amount earned for each gallon of ethanol we produce and an extension of the term of the credits to a total of five years.
    
   Evaluate New Technologies.  We continue to evaluate other opportunities to improve the Keyes Plant's financial performance by adopting new technologies or process changes that allow for further improvement to energy efficiency, use of lower cost feedstocks, and other margin enhancements.
    
   California Renewable Natural Gas
    
   Operate Eleven Digesters.  We completed construction of four new digesters in 2024 so will generate full cash flow from continuing to operate our eleven existing digesters for a full year in 2025 to produce and sell Renewable Natural Gas and the associated environmental attributes.
    
   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 a total of fifty dairies and expect the next set of digesters to begin producing biogas in the third quarter of 2025. 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 approved provisional pathways for seven dairy locations, which is expected to increase our LCFS credit revenue from biog