Aemetis, Inc. Q3 FY2025 earnings call

In the dairy RNG business, a new multi-dairy digester came online in September, increasing RNG production capacity by over 30%, with plans to reach over 500,000 MMBtus by year-end and 1 million MMBtu by end-2026. Seven dairy digester LCFS pathways were approved in Q2 with a negative 384 carbon intensity score. At the ethanol plant, a $30 million Mechanical Vapor Recompression system is under construction, expected to reduce natural gas use by 80% and add $32 million annual cash flow starting mid-2026. In India, biodiesel deliveries resumed, and the subsidiary is targeting an IPO in early 2026. The Riverbank site has a SAF/renewable diesel project with air permits and a carbon capture project in progress. Benefiting from LCFS, RFS, 45Z tax credits, and E15 ethanol blend approval in California.

Revenues were $59.2 million, up by approximately $7 million from the second quarter of 2025. In California, the production rate was 14.7 million gallons, and California Dairy Natural Gas recognized $4 million of revenue from 12 operating digesters during Q3. India biofuels posted $14.5 million of revenues.

Multiple income streams from India, LCFS credits, and federal tax incentives are expected to ramp up in Q4, positioning a strong exit in 2025. The MVR system is expected to complete in Q2 2026, adding cash flow. The India subsidiary targets an IPO in early 2026, and 45Z income is expected to increase significantly with DOE updated calculations.

Risks include policy changes affecting tax credits and subsidies, market fluctuations, delay in refinancing due to uncertain 45Z calculation, and government shutdown impacting RVO and 45Z policy formulation.

Q: Matthew Blair asked about ethanol segment corn costs and California E15.

A: Eric McAfee responded on corn basis impact and E15 adoption by retailers.

Q: Derrick Whitfield asked about credit markets and RVO.

A: Eric McAfee talked about refinancing and RVO challenges.

Q: Amit Dayal asked about 45Z tax credits monetization and India IPO valuation.

A: Eric McAfee explained delay in 45Z monetization and India IPO valuation range.

Q: David Joseph Storms asked about dairy digesters run rate.

A: Eric McAfee talked about production capacity increase and digesters under construction.

Q: Edward Woo asked about India IPO proceeds use.

A: Eric McAfee said proceeds part for US refinancing and part for India business.