Aemetis Biogas Generates $7.7 Million in Investment Tax Credits from Renewable Natural Gas Projects
TL;DR
Aemetis, Inc. received $6 million in cash from the sale of $7.7 million IRA investment tax credits, reducing dependence on imported crude oil.
Aemetis generated IRA Section 48 investment tax credits from dairy biogas digesters in Q4 2024, sold to a corporate purchaser as part of a multi-closing purchase arrangement.
Aemetis Biogas project in California aims to reduce greenhouse gas emissions equivalent to 6.8 million metric tons of carbon dioxide over ten years.
Aemetis Biogas plans to capture methane from dairy waste and produce 1,650,000 MMBtu of renewable natural gas annually.
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Aemetis, a renewable natural gas and fuels company, has successfully sold $7.7 million in investment tax credits generated by its dairy biogas digester projects, netting $6 million after transaction costs. The sale, completed under the Inflation Reduction Act (IRA), represents a significant milestone in the company's renewable energy strategy.
The tax credits were generated from investments in dairy biogas digesters constructed and placed in service during the fourth quarter of 2024. By capturing methane from dairy waste, Aemetis is addressing a critical environmental challenge, as approximately 25% of methane emissions in California originate from dairy waste lagoons without capture systems.
When fully operational, the Aemetis Biogas project aims to capture methane from over 150,000 dairy cows, producing 1,650,000 MMBtu of renewable natural gas annually. The project is expected to reduce greenhouse gas emissions equivalent to 6.8 million metric tons of carbon dioxide over a decade.
CEO Eric McAfee noted that the cash proceeds will fund domestic energy production projects and reduce dependence on imported crude oil. The company expects additional tax credit sales from biogas digester and pipeline projects currently under construction, with completion anticipated in the second quarter of 2025.
The project demonstrates the potential of the Inflation Reduction Act to incentivize renewable energy investments and support sustainable infrastructure development. By converting dairy waste into renewable natural gas, Aemetis is creating a scalable model for reducing methane emissions and generating clean energy.
Curated from NewMediaWire
