Aemetis, Inc. has reported substantial progress across its renewable energy portfolio in 2024, with full-year revenues increasing 43% to $268.0 million. The company's strategic initiatives in renewable natural gas (RNG), California ethanol, and India biofuels showcase its commitment to sustainable energy production and market expansion.
In the RNG segment, Aemetis doubled production capacity to 550,000 MMBtu in 2024, with plans to further increase capacity to 1,000,000 MMBtu in 2025. Supported by $75.0 million in USDA financing and potential CARB Low Carbon Fuel Standard certification, the company is positioning itself as a leading dairy RNG producer in California.
The California ethanol division experienced a 55% revenue increase to $162.0 million, driven by strategic investments in efficiency and sustainability. Key initiatives include a Mechanical Vapor Recompression system to reduce energy costs and a $12.0 million solar microgrid installation. The potential adoption of E15 ethanol in California represents a significant growth opportunity.
Aemetis' India Biofuels segment saw a 20% revenue increase to $93.0 million, with production capacity expanding to 80 million gallons annually. The company is exploring a potential IPO for this segment and investigating biogas production, demonstrating its commitment to diversifying its clean energy portfolio.
The company's growth strategy is closely tied to evolving regulatory policies supporting renewable fuels. California's Low Carbon Fuel Standard amendments and potential national ethanol blend expansions could provide additional market advantages. However, uncertainty surrounding federal tax credits like 45Q and 45Z could impact the economic landscape.
Despite reporting a net loss of $87.5 million, largely due to interest expenses, Aemetis ended the year with $0.898 million in cash. The company expects to improve its financial position with the sale of $16.8 million in transferable investment tax credits.
Stonegate Capital Partners values Aemetis between $13.02 and $19.03 per share, reflecting the company's potential for growth and strategic market positioning in the renewable energy sector.
