CUPERTINO, Calif. - Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas (RNG) and renewable fuels company with a market capitalization of $145 million, announced its ethanol and RNG facilities have received approval from the Internal Revenue Service for Excise Tax Registration. According to InvestingPro data, the company has shown strong revenue growth of nearly 60% over the last twelve months, though it currently trades below its Fair Value. This registration enables Aemetis to claim Section 45Z Production Tax Credits (PTCs) under the Inflation Reduction Act (IRA), starting January 1, 2025.
The approved facilities, Aemetis Advanced Fuels Keyes, Inc. and Aemetis Biogas, are now registered as producers of clean transportation fuel. The Section 45Z PTC (NASDAQ:PTC) is a federal income tax credit awarded for producing fuels with a lower greenhouse gas profile than traditional petroleum-based fuels. These tax credits are scalable and increase with the production of fuels that have lower carbon intensity.
Eric McAfee, Chairman and CEO of Aemetis, stated, "The 45Z Production Tax Credit creates incentives for the domestic production of renewable, low carbon fuels." He highlighted the significance of these credits in promoting the production of lower carbon intensity renewable fuels.
Aemetis Biogas is expanding its operations with an anticipated increase in RNG production to 550,000 MMBtu per year in 2025, marking an 80% rise from the current capacity. This expansion is supported by $50 million of USDA guaranteed loans and an additional $75 million in loans currently in process. InvestingPro analysis reveals the company operates with a significant debt burden, with total debt reaching $451 million and a concerning current ratio of 0.26.
The company has a proven track record in the sale of tax credits, including a $63 million sale in September 2023, which generated $55 million in cash proceeds. When fully operational, the Aemetis Biogas Central Dairy Project is expected to yield more than 1.6 million MMBtu of RNG annually, with projected revenues of $250 million. Investors seeking deeper insights into Aemetis's financial health and growth prospects can access comprehensive analysis and 11 additional ProTips through InvestingPro's detailed research reports, available for over 1,400 US stocks.
Aemetis is actively developing technologies that aim to replace petroleum-based products and reduce greenhouse gas emissions. Its operations include a biogas digester network in California, an ethanol production facility in the Central Valley (NASDAQ:CVCY), a biodiesel production facility in India, and the development of a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in California. Despite its expansive operations, InvestingPro's Financial Health Score indicates challenges ahead, with particularly weak metrics in profitability and cash flow management.
This news is based on a press release statement and reflects the company's current projections and plans, which are subject to risks and uncertainties that may cause actual results to differ materially.
In other recent news, Aemetis, Inc. has reported a rise in revenue to $81.4 million in the third quarter of 2024, a significant increase from the previous year's $68.7 million. Despite this growth, the company recorded a net loss of $17.9 million, contrasting with the net income of $30.7 million in the third quarter of 2023. Aemetis remains confident in its future, particularly regarding its renewable natural gas (RNG) business and expansion plans in India, which include a potential IPO. The company's gross profit escalated to $3.9 million, up from $492,000 year over year, with substantial contributions from the Keyes plant and India Biodiesel segment. Aemetis is targeting over 500,000 MMBtus of RNG production by the end of 2024 and 1 million MMBtus by the end of 2025. The company also anticipates significant revenue growth from RNG and tax credits starting in 2025 due to updates to California's Low Carbon Fuel Standard. These are among the recent developments in Aemetis' business operations.
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