Aemetis Reports Strong Q3 Growth Fueled by Renewable Natural Gas Expansion and Policy Support

Aemetis, Inc. reported third-quarter 2025 results showing substantial growth in its renewable natural gas operations while benefiting from multiple policy tailwinds that support the company's expansion in low-carbon fuels. The company's dairy RNG platform showed particular strength, with twelve operating digesters producing 114,000 MMBtu during the quarter and generating approximately $4.0 million in revenue.

The company achieved full monetization of seven newly approved LCFS pathways for biogas sales, reflecting improved regulatory positioning. Total revenue reached $59.2 million, representing a $7 million sequential increase driven by India OMC orders and stronger California ethanol pricing and volumes. Aemetis signed equipment and installation contracts totaling $57 million year-to-date across its dairy RNG and Mechanical Vapor Recompression projects.

Production capacity is expected to reach 550,000 MMBtus by year-end and further expand to 1.0 million MMBtus by fiscal year 2027. The company has established multiple monetization avenues for energy production, including sales of RNG molecules, D3 RINs, and Section 45Z production tax credits, creating diversified revenue streams for recurring cash generation.

Aemetis is planning an initial sale of approximately $20 million in Section 45Z and Section 48 credits following the September completion of its multi-dairy biogas digester. Management indicated signed contracts and pathway approvals will enable recurring monetization moving forward, with 45Z monetization expected to become a quarterly revenue item beginning in the fourth quarter of 2025. The company also advanced commercial execution through agreements for H₂S removal, compression, pipeline, and related equipment as part of 2025 contracting activities.

In the California ethanol segment, Aemetis executed an engineering, procurement, and construction agreement with NPL to install a $30 million Mechanical Vapor Recompression system at its Keyes plant. The project, scheduled for completion in the second quarter of 2026, is projected to generate $32 million in incremental annual cash flow through approximately 80% lower natural gas usage, higher LCFS revenues from double-digit carbon intensity reduction, and increased transferable 45Z credits.

California policy developments provided additional support as Governor Newsom signed AB30, immediately allowing statewide E15 sales and expanding the potential ethanol market by more than 600 million gallons annually. The company's India biodiesel operations delivered $14.5 million in revenue on resumed OMC allocations, with the subsidiary continuing to target an initial public offering in 2026.

Third-quarter financial results showed an operating loss of $8.5 million compared to $3.9 million year-over-year, with selling, general, and administrative expenses increasing 15.5% sequentially. Net loss expanded to $23.7 million from $18.0 million, while cash increased to $5.6 million at quarter-end. Results reflected the benefit of fully monetized LCFS pathways in the biogas segment, with additional credit monetization expected as Section 45Z and Section 48 sales commence.

The company stands to benefit from four major U.S. policy tailwinds accelerating demand for low-carbon fuels: California Air Resources Board's long-duration LCFS framework with improving pricing, Section 45Z production tax credits, California's adoption of E15 via AB30 expanding the addressable market, and ongoing state and federal clean-fuel mandates and incentives. These factors, combined with the signed EPC for MVR and fully monetized RNG pathways, support the company's focus on margin expansion, recurring credit monetization, and disciplined project financing through 2026.