Aemetis closes $30M fairness funding for biomethane pipelines and dairy digesters to provide under zero carbon renewable pure fuel (RNG)
Aemetis subsidiary Aemetis Biogas LLC closed a $30-million fairness funding with none dilutive inventory issuances by Aemetis, Inc. and funded the primary $eight.Three-million tranche to subsidiary Aemetis Biogas to construct, personal and function dairy biomethane digesters, pipelines and fuel cleanup/compression amenities primarily below 20-year agreements with dairy farms in California.
Dairies produce about 25% of California’s methane emissions and have turn into targets of carbon laws aimed to scale back local weather change. With a carbon depth below the California Low Carbon Gasoline Customary of about damaging 300, dairy biomethane is very beneficial, however must be collected on the dairy, pipelined to a central processing facility, then cleaned and compressed to be used as Renewable Pure Gasoline in transformed diesel vehicles and different pure fuel autos.
The venture will initially join a few dozen dairies to Aemetis’ ethanol plant in Keyes, California, with enlargement plans to greater than three dozen dairies within the native space. The Aemetis plant provides Moist Distillers Grain feed to about 100 dairies.
Dairy biogas is a under zero carbon biofuel that may be a new income for dairies, which don’t at the moment have a approach to monetize their biomethane as a transportation gasoline with out the required pipeline and fuel cleanup/compression infrastructure, in addition to a buyer that may use biogas to provide low carbon biofuels. Our 60 million gallon ethanol plant is able to utilizing biogas to exchange petroleum pure fuel to provide a decrease carbon biofuel and generate extra Low Carbon Gasoline Customary credit.
Since utilities in California haven’t but accomplished the allowing and different necessities for injection of dairy biomethane into pure fuel pipelines, amassing and changing biogas to be used in ethanol manufacturing gives Aemetis a sustainable first-mover benefit in biogas pipeline and dairy digester development for dairies within the space round our Keyes plant.—Eric McAfee, Chairman and CEO of Aemetis
The fairness funding of Aemetis Biogas was supplied by Protair-X Americas, an environmental funding unit of Protair-X Applied sciences in Canada, which has intensive expertise in defending livestock farming environments. Aemetis’ senior lender, Third Eye Capital, is a serious investor in Protair-X Applied sciences.
Aemetis is a complicated renewable fuels and biochemicals firm targeted on the acquisition, growth and commercialization of modern applied sciences that substitute conventional petroleum-based merchandise by the conversion of ethanol and biodiesel crops into superior biorefineries. Based in 2006, Aemetis owns and operates a 60 million gallon per yr ethanol manufacturing facility in California’s Central Valley, close to Modesto.
Aemetis additionally owns and operates a 50 million gallon per yr renewable chemical and superior gasoline manufacturing facility on the East Coast of India producing prime quality distilled biodiesel and refined glycerin for patrons in India, the US and Europe.
Aemetis operates a analysis and growth laboratory, and holds a portfolio of patents and associated know-how licenses for the manufacturing of renewable fuels and biochemicals.