Aemetis (AMTX) 6 Nov 222022 Q3 Earnings call transcript

Welcome to the Aemetis Third Quarter 2022 Earnings Review Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. President Financial Vice Inc. of Executive Waltz, and Officer Chief Aemetis, Todd Mr. you begin. Waltz, may

Paul. Aemetis Thank Earnings to Welcome you, the Call. Review Third Conference XXXX Quarter

Joining our of release, Aemetis McAfee, Fuels conference and earnings releases is of calls. call the press with presentation Aemetis' We website. Corporate the and aemetis.com of Advanced us and suggest to Biogas. and and today's Commission, visiting is previous recent Aemetis; President Presentations, the earnings Chairman or at the call and CEO Eric today's Securities Foster, Andy Aemetis for press the review website Founder, today download The Exchange for filing aemetis.com for Investors Investor available on review section

read disclaimer the following begin we Before disclosure to statement. our discussion, like -- I'd

we'll the making statements conjunction made from must These our in are plans, opportunities statements forward-looking including, without may call, to future that materially and all to events today's respect execution be and appear made. that with considered statements involve statements, be financing stock limitation, our forward-looking that cautioned activities filings. warnings statements of and our performance, respect future with cautionary plan. During SEC this and business in uncertainties, Investors call differ risks and the the on with disclosures expectations

posted information, additional website our on and are Exchange please without available which charge. For refer the filings, to and the Securities Commission from company company's

for website. and and in Series GAAP and extinguishment, A a will to XX, included is extent termination, and ended of calculating of on loss accretion this measures financial on gain XXXX, discussion the other months our non-GAAP amortization debt deductible our is EBITDA Adjusted reconciliation lease loss, comparable on earnings expense, share-based as net three to litigation, include expense, based measures most interest compensation call of A or income nine gain or statements such on a directly other the measures available September tax GAAP. in Our expense. loss to review expense the which expense, as income on income, net release on supplement the preferred plus expenses units, depreciation is defined intangible non-GAAP

for review during XXXX. of to the XXXX the of third of like quarter compared million third financial to increased $XX.X results XXXX. I'd for the quarter quarter third Now Revenue to $XX the million XX%

Our corn business in at in gallons during an California of sold $X.XX steady of of million the sales an quarter XX.X $X.XX third pricing increased volume in third third during of to experienced per XXXX, gallons the price from ethanol the Delivered price average produced XX% of million XXXX. Ethanol quarter with from increase the quarter quarter and of XX.X XXXX. the per bushel up bushel XXXX third

XXXX. oil delivering product in segment governmental biodiesel quarter to Biodiesel weeks Our the million a third quarter began companies India tender two offer. about loss to $X.X tender in $XX loss million third gross under for marketing mid-September, Gross delivering of compared the during $X.X was XXXX this offer of million under

of million million connection $X.X for other A million XXXX. as operating excluding in were of of of XXXX Aemetis compared accretion during Interest for the million India accounted loss to $X.X with third for carbon and of $X.X administrative general third a subsidiary, $X.X charges our segment million was Ethanol quarter ultra-low was loss gross expense offsetting of initiatives preferred investments for to compared compensation. during gross expenses profits compared of during California Series XXXX. result quarter and from million, $X.X Our of $X.X and $X.X Biogas the stock million of in expenses XXXX for the noncash third XXXX with the third loss Selling, quarter third quarter our Operating XXXX third the and to quarter segment. the Biodiesel our million quarter of units an $X.X

$XX.X of net XXXX, share. Absent charge, the million one-time change the earnings loss quarter execution completes low-carbon highlighting or with was XXXX accounting to preferred as Form Management of A third Net review part $XX our Additionally, of on redemption during subsequently $XXX,XXX the $XX.X to payments charge purchase The to one-time third million quarter $X.X of Series Series compared redemption valuation quarter agreement. engaged on XXXX to this a third by result our the projects. was A end other the as of of Aemetis quarter XXXX. quarter our Investment the during and loss close fourth XXXX loss unitholder Series At million, share. of amounts loss million the this time, representing third its the million primarily for third charge a release. of preferred third $X.XX $XX.X along of the the the during during will redemption filed quarter million the preferred with million capital review A the million Biogas were the $XX.X of quarter $X.X subsidiary a related XXXX, units of of the a Management This recognized believe the of units not we XXXX, Cash our result be connection as of expense on materially units for of in of the final completing third which at quarter redemption XXXX. the third compared of this to is accretion $X.X Aemetis. made projects preferred premium filing $X.XX preference driven to with will assist the of XX-Q, accounting third calculation. to amendment by a charges. net A reflects do related the units $XX.X of parties of the during and preferred of of compared million extinguishment value and was multiple for products -- to per quarter Series XXXX charge of in quarter of unit the third per further commitment fair expected the at

Chairman Eric Now I'd McAfee, Aemetis, like update. introduce business Eric? the Founder, for a Executive and Chief Officer to of

you, carbon negative below intensity on products, Todd. producing natural sequestration. Thank is intensity zero diesel and renewable with including Aemetis and fuel renewable carbon and focused aviation carbon gas renewable hydrogen

for environment, sustainable generate carbon to materials and and projects from our reduce renewable reduction generating our and operating benefit fuels. feedstock state by energy tax production waste of renewable carbon zero programs. credits communities We restore Our costs federal and and fuels that using innovative and other while the seek intensity

the by unitholder to of third from charge business. the our million $XX about charges talking investor in start estimated redemption Biogas preferred Let's the the in units related Aemetis to Aemetis redemption unitholder preferred Biogas the quarter repurchase The subsidiary. related

which loss equity expectations. QX a at Before Aemetis between third for of redemption agreement the outstanding preferred $X.XX the a equity well of increased was accounting in taken entry related Aemetis an includes quarter, a SPAC, to units the range counting as transactions the the of high had to XXX% share investor Aemetis per within be expected preferred should The of out XXXX the unitholder in a biogas valuations subsidiary and motivation that equity spin industry biogas Aemetis preferred as Aemetis or of charge, Biogas. the IPO redemption a several whether that Biogas reached into value by discussion the of in is the factors, considered. of redemption repurchase that charge is including noncash The sale preferred the was

Archaea a value to million generate compared million X.XX -- decision expense of XXXX, was at to per strategic the has positive of billion equity. XXX% which natural been premium, as As Biogas expected primarily of year. especially an on preferred negotiated estimated California Biogas, was interesting not renewable development. preferred not most year, approximately unitholder We MMBtus landfill redeemed XXx intensity in Low MMBtus currently other noncash million by credits that to $XX this preferred to Aemetis nonoperating credits. transactions by landfill gas reduces at booked the to dividend, Carbon was liquidity Aemetis by of would quarter earnings have Biogas landfill Series statement the produced subsidiary In redemption only produced a a per the equity income rather third share. event a equity last you and $XX renewable the OPAL Aemetis $X.X recognizing Archaea. number expected on the a in RNG without the LCFS Aemetis share. million balance right preferred was estimated are an than guidance XX redemption sold shown transaction planned And reduced million to public paid XXX future gas seeking waiting a a accounting of XX Standard charge over to digesters to Biogas the shown about the future generate carbon LCFS which supported the recently, owners X/XX Archaea income expected about considering both and statement, is the redemption more of comparables After for of as project dividend of a made of Aemetis dairy completion of the with a a preferred not preferred Aemetis billion considering $XX an of OPAL which intensity, on gas features million compared BP, cash, at the two score This about $X.X included investor QX. in and XXX known of to an the that the for of generates buyout acquire carbon compared valuation liquidity of preferred Biogas determined and debt Biogas credits, $XXX the believe represents that the know, but all negative would Usually, In of not who the sheet, to is at Fuel generates have redemption redeem event the charge certainty per XX as the has the A equity Archaea Aemetis earnings Aemetis our debt. these equity credits. went the of of LCFS that case, pre-money the Aemetis unitholder from a as

by now which funding. rate interest we're to funding In Aemetis. projected making the and financing to about plan XXXX, five-year updated more in Let's expanded to rate million our increase revenues $XX loans, year progress bridge interest to reduce the and to XXXX Third $X.X our higher an which early than projected of per In growth than we annual more XXXX, plan, lower has million to $XXX Aemetis EBITDA and announced billion repaid year Eye to discuss grow access XXXX. Capital

to characterization we cash level signed project and plan financing plan each U.S. land And construction financing then construction positive government lending revenues plant, pad plant enabling of engineering, for long-term financing growth Enhanced credit other ethanol, earnings biodiesel projects and while market new rising with to has are LCFS million X% interest ethanol and Third permitting have that interest this facility low only project past at debt development, site to project, and permitting the of shareholder million growth was up and and of reduction XX% currently biogas preliminary built. projects energy rapid for Our renewable for loans at quarters, and the and the model obtain supported $XX eliminates After and and we facilities as rate, year. diesel Capital two fund conditions project two fund $XX the financing using sequestration engineering model in rates with this and even at to solar interest the working, by production from This is working India control COX minimizes a and Eye using glycerin from credit new received prices. rates, the Eye credit about and wells. XX-year provided system $XXX or and drilling purchases, dilution, per project growth creating our financing the difficult construction operations. aviation guaranteed in completing carbon by This at Keyes Third In many of Capital related year. March funding fuel equipment engineering, facilities. a flow capital pre-project is low the the by million

that project was month million highly example financing the of biogas principal. strategy, an interest natural and fixed to is fund program, a long-term of digesters financing, rate recently $XX renewable Energy As Agriculture, X.X% XX-year a this of pipelines financing gas. and has for completed known for produce Aemetis at our Renewable years The repayment favorable five America, a as U.S. by supported REAP dairy closed Department biogas to

Let month the me clarify that, of that was October.

Newsom of of August regulatory specifically The price LCFS Resources to credits tons a total a a this in XXX Draft In issued Regarding pace scoping the to is plan XXXX the sequestration trends. increase release a the required credit Governor under Board, of in California early Resources California. Board number significant California goal. letter metric letter Standard decarbonization California of the Carbon year, Fuel million requesting expected The increase the as Chairman of of specific COX the Low stated program. in

CARB. be about to of will traders meet learn We expect required goals credits forth the decarbonization by as prices that more LCFS expanded rebound that credit the number will LCFS set

to was on businesses significant Inflation addition, Reduction general have expected energy In federal renewable a and in is passed our recently impact and positive specifically. the Act

the review QX of tax and the to are will a IRA revised of business. That in We a impact on advisers release with our X-year our plan include completing XXXX. process expect legislation

We to of and develop the are accounting that Reduction implement amount tax structures specific lawyer resources tax should and significant the tax under investing review credits maximize into IRA Inflation available of value Act. the the process business a

As Aemetis. to the the provisions related Reduction Inflation a reminder, Act of

the renewable of per a to five received from investment the renewable investments. result natural ITC million cash for million capital for year credits. is Inflation Aemetis First, $XXX of up for to years investment gas by Reduction gas next tax $XX natural in XX% Act rate credit at approximately tax projects expected The

$X.XX in credit extended year support Plant diesel is and a renewable renewable in to monetized $XXX the to per of construction for aviation XX-year to Clean of credit $X.XX the an cash year tax Aemetis program the $X million funding. $X up Fuel provide over and of from the The fuel in XX sale IRA airlines addition IRA Inflation operation expected credits, a than revenues of credits SAF more for and Next, tax tax Carbon over aviation $X to sustainable fuel and is fuel. Standard standard This RD of billion tax the California and the renewable to Riverbank, credit of XX to federal result our and the repay in estimated potential RINs project diesel. Act contracts could credits and $XXX the efficiently, Zero Fuel Carbon million-gallon years fuel aviation tax billion per Reduction diesel If Low million certain from period the California. with sustainable DX

the IRS sequestration Next, in the ton seven to refund in an tax years, a of as called the metric an Pay followed increase $XX in $XX per from companies but additional credit process COX, carbon tax of Direct five cash to paying for first tax years credits. credit by

years by the adopting thereafter, costs $X.X costs valued amount year the aggregate in rate, per a billion $XX sequestration several A total per With additional year of are be saline formation the reduce repay tax tons and to of two five first energy of need two Ethanol carbon tons correctly interest aggregate potentially an metric credit projects. providing two planned $XXX X,XXX operation reductions. equals model $XX in located of $XXX a of IRS to credits ethanol in transportation, the the ton the the underground. per are regulations renewable for of another fueling biofuels We XX% prices to and tax decarbonize to valuable million years first intensity cost are a credit by to legislation COX planned of biofuels IRA initiatives XX% seven developing of management to $XXX of for be approximately injection operating the project, support million feet sites approximately driven at wells that gas yearly other the million tax lastly, capital at IRS security to expected Aemetis paid times sequester would to ton by Aemetis million for $X years could each in And Aemetis a carbon year fuels. Aemetis per low plant the funding ethanol same metric two increase, the the renewed as of wells. California and an XX petroleum Argonne the cash fuels carbon intensity infrastructure and Lab's X generating GREET the in including business, blends, calculate two the the billion, to greenhouse value the the of into million provisions These ethanol,

business biodiesel equal updated tender that's government per and a of biodiesel. gallons month in in purchase is marketing now achieve a Policy the to per X.XX Biofuels This offer gallons XXX year. was about up biodiesel The biodiesel review to of XXXX, our being of billion companies India. in blend implemented million three Let's summer, National India to to X% oil issued

years, largely the prices. petroleum XX been For pricing have driven by past formulas the diesel

oil first feedstock to tender format For the used the for tender, the time, for to a feedstock the timing for month to two expected reflecting of cost pricing oil India. ongoing formula the pricing and the sales companies formula the The be plus marketing OMC is marketing by produce biodiesel companies. actual was in

biodiesel in glycerin and from production, glycerin the for operational we from generate is agreements soon has a positioned be biodiesel been and formula. our since XX, We September. testing thereafter. began XX to believe in the by the about mid-September end subsidiary the requirement testing calculation by the of shipments biodiesel $XX India allow India continue and offtake in into of documentation, procurement plant to a of marketing XXXX last for shipped laboratory the the high-grade oil October though unit the by from year debt biodiesel India deliveries due The plant no of our two of of the Despite the biodiesel slow processes. refining continued year XX uncertainty the now, for pricing companies and export extended biodiesel for continued expected and expect renewable at and converting for end glycerin to deliveries to expected rapid the Production delivery refined are August U.S. a will us India plant unit OMCs million delay of this yields. rounds with produce the We of to days two the tallow mechanism tallow XX% X due we to we well underway is period India. to based of approvals delivered early Europe facility process growth are sustainable of the the of on predictability weeks has burdensome is September for purchase the the delay production refined export orders. sale in the biodiesel product have ongoing in million-gallon and revised of pretreatment to be tallow fuel. for successful begin formula to September crude quarter. to diesel After OMCs The cost-plus utilized fully the for after Negotiations the the QX feedstock the tallow and operations early production maintain purchasing Since per OMC to biodiesel plant, aviation to XX XX-day refining high constructed, and in

Advanced and Aemetis the Biogas Now the Fuels President businesses, review Andy highlights. Foster, will Aemetis of

Eric. Thanks,

the in-service utilized With to to in project several is America first for program, in on Renewable track financing Energy Biogas for XXXX California deliver our on QX renewable dates gas key that projects. USDA $XX the recent closing million natural deliver of -- Aemetis the

additional and five dairy construction completing digesters. are commissioning of We

feeder interconnections Our and biogas testing completing as of contractor XX pipeline has sections. of miles is pipeline well as final and commissioning installed now the

pipeline, unit. dairy new We and be PG&E facility new have RNG to biogas now The digesters been centralized operating fully service are completed receiving RNG, facility plus expected and in expected final in upgrading to the the RNG. construction interconnection in are utility and XXX,XXX carbon the gas service for XXXX. original testing the since accompanying interconnection digesters to year per digesters After of are CARB two pathways LCFS that approximately the XXXX generate have in five MMBtus QX intensity for

to LCFS underground we to with approval. While plan preserve review volume to applications, to process can a for generation, anticipate help await CARB RNG we months. pathways timely approval take the Due maximum store the from produced nine working to closely and the LCFS value. credit process facilitate staff credit six high of We CARB

the executing and centralized $XX fill in a of REAP we on pipeline of focused currently the cleanup interconnection Operationally, digesters dairy the to second financing. construction stages are are million We the advanced briskly unit. facility closing Aemetis Biogas and USDA

or We dairies in almost dairy XX leases multiple and have signed participation have agreements process. additional

for as items dairy such or XXXX. of continued into could While existing weather digesters backlog down supply challenges slow schedules, temporarily carries compressors rainy chain new our project winter us

expect be has Department California XXXX, natural Gas and Energy To agencies as $XX the rollout five-year and biogas the Pacific to plan. Aemetis dairy of the on dairy other the Food During California of Agriculture, in government the and date, digester we grants biogas for to Electric, production renewable and described related project from been million track Commission, gas. project the with the awarded of

progress Ethanol our plant. briefly at Let's California discuss

sales XXXX. from XX% QX a compared generated we earlier, QX mentioned QX Todd -- ethanol year-over-year to revenues increase in in As XXXX of

with whole. about labor corn to cast increased pricing and performance, our and negative volatile rail corn major a railroad higher bushel. cost with rail However, Ongoing operational economy have carriers on and $XX the ongoing the as shadow energy continue per prices, delivered industry operational to the issues poor combined and a of

corn and On for strong U.S. corn for for as likely Additionally, corn helping Mississippi cause steady and continued increasing diesel or are production and animal ongoing demand in used delivery California, pricing. rail has for distillers oil cost renewable favorable energy. pricing, positive of in and increased feed ethanol grains pricing to offset note, wet is value distillers the a drought-stricken the River disrupted operations to the and challenges

outlined, operate low high-efficiency our using being renewable by pumps to powered Ethanol intensity renewable our As power and California electric micro grid electricity. and is motors carbon or solar including plant sources, upgraded previously zero local I

of Aemetis a these Public other PG&E this awarded Utilities energy grants projects. efficiency the has our own million to strategy, worth and complete supplement strong endorsement been funding Commission $XX of and As by to California entities

reduce to eliminate meaningful the we've completely is of goal the Our natural year, or use petroleum-based plant. this toward Keyes steps at significantly decarbonization. achieved ethanol gas And

Let are plant me take are a Keyes few expected on that cash a moment provide updates projects key materially to increase to the projects fully ethanol flow completed. when the

has the over and First, at Mitsubishi in ZEBREX dehydration mode operated production months. ethanol installed been unit -- full two for

extremely continue is usage work In gas we unit, millions of expected Aemetis partners to by over which While and our reduced ongoing to an basis. annualized, Mitsubishi operation the early are the natural closely unit September, ZEBREX annual refine the August ZEBREX our XX%, with our on results at costs in dollars save to when energy positive. of

Commission. from an megawatts unit is grant intensity solar at operation our designed This by installing of plant. with are million $X zero supported our of ethanol and Working carbon to solar load construction electric the microgrid. low X.X battery of is and generate for California for EPC $XX closely week, began backup operations. we Total, cost million emergency technology solar the approximately a project last Just with provider, Energy power balancing The we array

vapor will and detailed or natural and costs to petroleum system, final the of the intensity in The phase. lower reduce expect engineering in the is further reduce mechanical ethanol. MVR and of our We equipment gas complete procurement solar carbon steam to recompression, QX use, energy and XXXX installation

by the of becomes Currently, for gas MVR expect approximate $XX reduce at million in operational. the XXXX. ZEBREX natural than intensity so in that production We rule changing will the enzymes value, recognize ethanol of federal expected plant production are plant carbon the allow the valuable business intensity gallon $X.XX and gas change performance Keyes $X the more about from costs This DX the costs million expected this ethanol. be add $XX gallon to item Biogas begin milestones process dehydration with per per XX% summary, reduction In cellulosic. XX% and These additional worth Keyes the to plan. cellulosic is to once in announced $X and system. cost the between financial the for credit cellulosic in savings system tax ethanol gallons and year EPA, overall LCFS when operational late of we as by the to Aemetis for to our operational five-year The to expected RINs a will use is our annually. expected system natural natural note. gas project XX% is and be track MVR the natural Eric? reduction is additional expected million continue the significant approximately of a fossil gas qualify reductions an fully of us ethanol impact portion of the and and ethanol then addition In is January, on recent with One will carbon system per

Andy. Thanks,

diesel Aemetis sequestration Riverbank a Riverbank dam. three XXX-acre direct The Earlier City XXX site Carbon of loop COX this carbon space, with a to Zero sustainable under with of of the well feet as of on after Army, the a connection plant site of railcars XXXX, is and Industrial line our December U.S. with Army acquisition and hydroelectric year, as renewal storage and took substation operational Riverbank the lease Complex diesel base project. construction the XXX% discuss manufacturing agreement. with sale the of ammunition In zero well our a renewable site, intensity power our of a Riverbank rail construction former electricity power the a XX-megawatt for the Aemetis portion XXX,XXX production U.S. control signed existing sustainable Riverbank, and renewable aviation Let's fuel project and of for aviation facility square California. years negotiations fuel Riverbank in

sequestration Aemetis XX pad for of road capture well drilling heavy has and soil a the and Additionally, and the completed the purchase COX characterization access the injection wells. site and equipment Riverbank well acres at built carbon

federal aviation say, to of signed by market jet Riverbank Francisco the other from legislation, year, Riverbank million American SAF more trucked I should Qantas next The have via engineering petroleum completed Francisco then is contracts be completing will plant airlines. a use plant. early produced that will of with sustainable to sales Delta federal San Airlines, for than airlines offtake aviation fuel per be sustainable delivered with billion the year. announced Airlines, order the blended now look fuel. pending the gallons agreements, past to fuel. Bay the and allowing $X.X to Area for Japan We've Airlines, production about jet to to expand airlines. XX blending at San now Neat aviation forward for We and sales competitive Under the SAF Airport the be plant construction with legislation, fuel blended for Incentives pipeline the the in price in permitting sustainable We fuel a and by begin included that contracts

to California per a a its XX million renewable a addition, travel stop year Northern locations. with gallons signed diesel agreement XX-year billion sales major In deliver for we under sales $X.X contract chain

by and compared identified in jet of XXX,XXX plants sites carbon investment October issued to In the of power for cement highest University largest review year from one California emission two in into plants sources refineries, have that as plant the building Let's return we Carbon capture carbon in ethanol biogas, sequestration inject biofuels Aemetis from Center In the per of subsidiary, the study California. Capture. ethanol a the the wells, metric potential near emissions was facility, Stanford ethanol Aemetis we to comprise up plant capture XXXX, XX and our that our in on COX three COX Aemetis sources drill which oil California plants gas to California. project, natural plan two Carbon diesel sequestration Capture Phase plan our COX in the X tons to and plant

construction million permit. minimum to tons drilling X other sources then wells, the receiving and Class includes emission year additional site sequester drilled wells expect COX will of construct two two of injection have per injection metric of The to permits. be COX planned the and COX. a at other of X to We million by EPA year after empirical characterization each per phase provide initial supplied injection total same of wells data The tons for with EPA a capacity, X metric

two of believe Direct year $XXX a ton hydrogen a first per the natural $XXX sequestration. the COX the production. of the We provides direct COX two process the feature projects, engineering an aviation of first million of of $XX Standard. estimated of pay pay in zero carbon projected wells for intensity million tax over and of adequately generate $XXX Riverbank is fuel, refund to carbon X from direct dairy project COX injection project cash and Federal The diesel million year negative Reduction are a years and Act credit sustainable five per intensity Pay tax years provided million India, the funding permitting Carbon cost as the at well metric biodiesel we each ethanol should of and as Aemetis per renewable the an gas, portfolio wells amount million an related ton from renewable $XXX with rate low-carbon The expanding electricity, a first the planned renewable the year per fixed Low summary, carbon Aemetis Aemetis expectation estimated well tons capture Inflation support the $XXX We capital year federal the metric using In five characterization of site. per the COX for the that the expected in funding currently will as of equipment. at drill Fuel by diversified sequestered from characterization will

circular renewable projects we as All refer use are we what feedstock to negative synergistic carbon which create local within and Aemetis in byproducts bioeconomy as our a and products fuels. and low own of produce waste areas facilities to these and of intensity

making commitment significant company's include contributions positive our employees to empowerment to value for and serve. shareholders, a for Our the and we partners, and the and values respect communities long-term building business of

let's take participants. Paul? few a our questions Now from call

you, Thank McAfee. Mr.

question-and-answer proceed a session. conducting be is live. Instructions] the question. Please question coming Derrick, Whitfield now from And with your will first Stifel. your from We line [Operator Derrick is

Eric Thanks and good team. and morning,

Good Derrick. morning. you, Thank

morning. Good

could benefit on for could and your have it I a the earned based maybe closing USDA for levers I foremost, if SAF expectations touch the and biogas ask, then our the could to for if the your learned and us significantly as for RDA REAP. complex congratulations share financing finally, few? was with plans you expansion you from It loan investors, process guys facility? seems of the of the And and of First the next financing business you out know lengthy also disposal with on discussions us Riverbank the you timing on process that, industry. that some derisked. first lessons Perhaps truly at on is the

consultants million, array million contribute is up doing built. the are and we feasibility to closed REAP amounts. under largely USDA are we and entire $XX commercial is of on and assets things well $XX changing of documents, Good. Aemetis the kind doing to familiar have to first staff. not a the work And lender project the at who's well being of what don't million of and project, as reeducation for project onetime just very that as, side, as study process, both the that the we're other well USDA sure, that education we process consultants, we repeating frankly, our We round with commercial as as replicate as of really now look but and our as environmental is introducing people now the and the a all This of are and entities borrow of all contributed $X lender sort other It's of paperwork structure entity, form one, that in who kind the really itself $XX is purpose program about learning about not equity special XX-mile these with million very a the with that changing equity. already our just of The of we've project we which of that familiar opportunities. onetime per now set SPV pipeline max locations our the the documents,

of equity this ahead are we investment significantly. So

that's well the We center about our project. in both equity as million preferred been $XX grant as have the of invested

required So is capital. for equity SPV at SPV, million lot a only $XX of and whole SPVs $X million additional that's of of

lengthy and the and one on we're environmental project fourth onetime that we month is any necessary we've as working the it X, The the third issues, closing in this ahead here October looking the item funding something and the all January and is started process up closed the just is going second in next level a to would We're a then case, fifth. thereafter In I of education say for XXXX, already of signing -- USDA's construction it mentioned, that and or developer in. our process. through of at just dairies. Andy a it's up requires So put federal And we'll XXXX. education. committee do the on the equity onetime

commitment, So definitely you commitment. a and have have to has the long-term USDA long-term

only fundings. what Aemetis now Our has think a long-term cycle, now, that a a months I which learning we're first looking bank commitment. doing is over proved at are that long-term we'll that we have And commitment. And we be between few

assistance we SAF, signed XXXX program Regarding biorefinery document with $XXX the have USDA. under a million

-- of back to full a which for permits agreement of process our in able completion our to the ground. then agreement, $X EPC completing break contractor the documents with a of the to EPC necessary authority and us are necessary wrap some constructed the is up two We Those go project are billion wrap be with financing. and already the the

proactive municipal the D.C. Washington, projects. in exempt X market Department certainly, for to has us with sustainable market very attractive And addition very be is very California low tax Energy supporting I'll a of been presenting USDA, interest rates. aviation bond at In the The November

panel. Shah, and actually But loan Our programs and the at the Gordon, issue. panel, who -- is the is House White my our the of panel fuels office by SAF is has of head moderated Head a introducing couple Jigar DOE of airlines on the Kate related

then a equity billion frankly just is we project. debt XX look interest value these as and DOE in you the the monetizing monetizing one Reduction So strategic have we instruments Act. as of years over various of When well at the And the into House our incentives, have. from great this opportunities it's that $X Inflation White lastly, in

a two partner one growth have I in is closed we USDA to now, growth. and or we transaction we're us And interest us that this like transaction amortization, another easy. a right certainly, market simplest SAF. say That's have ones. want So open rate very, in make And markets closing If our it's seven-year environment. interest for a it's and market markets, doing open have with a attractive XX-year rates I But key. complete don't only we're in long-term very of the to having this And anyway amortizations. attractive the difficult for you not X.X% have in debt sound a our would very amortization four for and troubles. at a

those can that of financings. So a And kind proving is XX-year then we're amortization deliver we fantastic. on

I clarify USDA a expandable. is that thinking and facility just million-gallon I the recall, Eric, if on Am loan, to comprehended about XX that correctly?

facility. That's XX And million-gallon correct. building we're a

accurate, to actually originally that were of two math phases, the do interest phase original transaction but a -- than we only doing one our this us we'll build and and the in that because caused phases. to was customers rather going from be is So your capacity larger the just for than amount double in two

the my sales comment weeks. years? couple it if expectation only to as on and how nice was a certainly start business and business up for biodiesel could production was regarding QX a to grow over financials contribution that your India, view when follow-up coming in your show can tallow your see And you refined in on even the it from for Could of

as got for And QX shifted to the is August, of already September one-third described, the middle and I orders October. done. into we September got

deliveries -- done. So October very visibility are our good on we have

revenues already, we're the and have of two $XX of that all so go -- still And majority shipped a looking we to we from in total quarter. and we a announced sources million, at months have

is looking from very quarter a So the perspective. strong revenue

We marketing are waiting out were to the for companies with who come expected November oil the tender.

the materially happen on so QX we've are to November, will keep just shipping, booked. right? increase revenues in and that And that already expecting could we that we So

as at seeing, currently full I States And start-and-stop running continuing that our facility -- allow of are something sort I currently plant diesel making already we just that of in situation are approximately mentioned, burdensome capable now see definitely a to in. process, We're procurement proficient business more move companies won't sort The has couple There under how a and of our to run this forward of be they and will OMCs they'll this, five United completely at renewable as negotiations. a the it. to think capacity. we coming have but that So the are And do us of progress a are constructed discussion. tallow weeks operating. and delays with is we agreement see offtake learn

in So first quarter worked we're year next the out and shipments. that on working getting begin

Eric, for thanks your Thanks time.

you. Thank

question next your you. your The Truist question. from Levy live. coming Jordan, is line with Securities. Jordan proceed Thank Please from is

pref deal the we on the side, for think Thanks to of timing But a should so in exciting much more activity perspective? detail sense for transaction it the that about biogas kind financing out questions. lot from Maybe the on starting makes a I taking provide a the given expect announcement there. that play the just and could market, little how you of

financing The the financing the of buyout of project? or the underlying

the Yes. buyout. Yes,

Yes.

opportunity, instrument and instrument we an debt a opportunity. have have equity We

carbon diesel which trading companies, have a low is we're not relationship companies counterparties factors have but who This are intensity sustainable It's very that oil going to product. and other of interested counterparties a into all to starting negative even because And I landfill with natural gas. want as business well in extend and XX strong in renewable carbon managing would maybe -- fuel natural as number dairy actually of we're It's large preferred. interest We renewable other gas. our have, positive ethanol. just our strategic XXX even say we

spending us. really OPAL then of be What created we're it's we've for meaningful companies this lot in either cashing very But And we're debt going comparables way, structure, be I come to preferred been get first Aemetis. a accretive opportunity with XXX% a on XXX% have meaningful And is in to relationships. doing this there will so way preferred maybe is our time a potentially interest building way. And of people I to in, to the think expect in long-term institutional opportunity that into And operational and first Archaea business in the is subsidiary. biogas the for this the structure.

to makes That you. Maybe over sense. the SAF side. bouncing Got

agreements sustainable and the think could in diesel priced state remind IRA you've for the offtake and Given signed incentive provision through flow are helpful how the aviation us I you fuel, generally federal if and be how might the for it renewable SAF those?

passes the fuel. actual to clean we The forgot to $X of Fuel tax to in all above the until know near in into XX% any a that Aemetis' Standard Low all a premium fuel we is the of is don't I customer's dollar And Carbon Oh, incentives, the ones we're about, which structure per even in the plus structure gallon, of Aemetis. the the the selling, molecule credits, value XXX% received account. approximately account jet want that other flange standard price credits, tank, the future renewable credits, California federal fuel

credits Aemetis access starting requirements hedge they the has incentives C-O-R-S-I-A, sell they're of get themselves, among value this say, is premium, contract our airline structure the to can can for they the -- add more fuel, what have trading but those with somebody CORSIA, they they is the customer So all other airlines the and to as CORSIA airlines. from jet if of XX% let's than are, which SAF

increase, doing that by to Aemetis, million it's every $X.XX $X.XX, XX% our or $X about let's XX customer for the be can of it, million to other per being call so gallons, paid companies. offset gallon, sale by credits And more

to jet voluntary premium, in but actually markets, that which mechanism they're so their boarding back trading of then a penalties them there's can fuel. a for get own So example, paying price some help some us voluntary, have Europe, that, the not they

have price us. hedgeable process, which the are our from and of end fully So that attractive even paying it's actually possible Scope Scope X emissions largely SAF the is customers at of and to course, reduced Scope the of X fuel, extremely from X, buying jet

questions, Thanks for taking helpful. Eric. Very my

Thank you Jordan. Sure.

is Thank line you. Amit The question live. coming your from Wainwright. H.C. next Dayal from is Amit

proceed You question. your may with

month, merit per a for million-gallon that kind is the they're of XXX there? And out The is Difficulty]. [Technical that

of Amit, per in demand. was seeking your have but XX% month supply They're to question, per biodiesel a -- blend year million part gallons a customers whether X% XXX of actually law year go million India, the X passed gallon diesel the there XX the so $X.XX XXX-plus if with place months earlier taxes tax XXXX, equivalent to got additional not will which of is the per diesel currently that of we're country. this India about the billion of billion is in in And blended getting into in it's gallons biodiesel. that into of April a an from continue now, is five that approximately I scheduled

$X.XX blended that gallon to you price equal order So of us X% a of if paid $X be to per per tax. in avoid blend, payment gallon to that could biodiesel additional that is the

at a much by a pay as and this the this OMCs. do private $X.XX failure by especially procurement with X%, have blend India to in help marketing we ongoing per well not that will oil demand cost-plus market, a as diesel to refiners the companies for be gallon that be there So in biodiesel penalty smoother will to perceive structure

Difficulty]. That are these was [Technical seven equation. completed my another just Difficulty] [Technical

of we'll testing commissioning the be performance as seven year, We year. in-service. what's the accepted quarter from as described, end Andy specifications have meeting in known expected next in and to contractor of As process digesters the this our first

construction, We have process approvals, permitting, environmental already that thing. an of of the additional sort in five are that

and the So service us of building recognize of It's for unit get item dollars in behind QX process with but a us. project. been we're long next What we they Gas is these It's before football the lead important are that same until years these do expected first doing pipeline. us the cleanup long are and We done be a That's their here are three Those in signed to gas by and which five. had next digesters many the is utility the XX-mile interconnection rectangular though to in it. to dirt items. now in centralized already the them. took the built we just to Xx. thing the the customers. to field-sized be locations It five. in Electric, by probably We're they've unit quarter time testing & all contractors commissioning with them, gas actually put was really those already up much that is not by permitted Pacific with to same have service time and waiting do What's had lead process. in build rapid now more the of doing millions the them, it, managed And PG&E actually in

expectations exceed meet the XXXX. now, with I So or USDA our especially working to in ability smoothly, to is with relationship think accelerate financing going

question next from TPH. Matthew the coming And Blair you. your Thank line is is from live. Matthew

Hey to be is Eric, for And congrats EBITDA that again. it's going on just on that the weeks, in going going good share margin, program those QX? for India margin know Could EBITDA the run you couple and of is biodiesel rate gallons a QX a beyond? I

under the completed. the QX operating we've contract same deliveries already for We're

got September the August So that for XXth through and end of October. was was the September pushed to back and contract slated that

all that And number applied there, million we October. it's in the same the yes, for the was just what apply ship XX so X.X quarter, linear so to you to That's could margin, million. continue

saw two approximately what revenue month's in have we is X.Xx the of in We October September. weeks in

do have there. specifications. So do easy math to winter We

winter, which the the handle ability is feedstock in lower have use to in So cold we weather. flow colder different plugging order to point, a

expect do in margins we So lower the time. winter

flow we're We actually the specs. our mid-February, companies on time have, we'll And is start early very that expectation that. customers revenue a out in -- however, the warm continue. buying winter many India in about of of country. see we're And

our really it's in -- really smoothly moving only process to deliver tender getting winter on orders ongoing just of time process is getting to every actually issue. primary the two OMCs India, issue even It's is the So an for these just it's purchase months on there's production the not a procurement -- the offers. or specs, us, really a

just RNG you if Great. is by you Thanks. MMBtu then of target the side, And any more production. correctly, with that of get construction. And it running you Do X.XX that trying you digesters seven then won, of heard digester long-term XX have on far a target? construction under dairies another end the five on million I'm haven't on that started I you sense have won how projects the to and year dairy you've RNG digesters like sounds along the you've the yet? are XX

call Andy commented, XX There's we have let's it about agreement. participation a signed.

it's opposite We working frustration. -- additional right the have have we now, three side, actually,

but wait building you minute, Our for dairies are signing this can't and thing mid-XXXX. then start saying, a

that years. before four of the got you other plan, year is of looking is We this half that have this a next be updating wait before so. be But going build in wait thing. over XX about some going this X-year hurry it's months up? these out thing it plan XX we this that You're earlier you owners are the hurry phase and couple published means the I opposite, which of February. every of exactly the to and you're minute, signed year. up, to was that we're you're in Can't is a in thing. half intention agreements, guys fill We'll dairy Can't our of rapidly out already years doing plus the frustration guys by building targeting But to again, to five

expect plus the approximately Just additional final incremented start go QX five an XXX,XXX in-service whatever in then numbers, the test commission would be And operating rates, year. year. clarify to in MMBtus service in we as per next by that run we seven and

seven has increases this number it plan of year and annual annual be at next number, So an our then the that year. end X-year would and

much. it. Got very you Thank

Matt. you thank Yes,

is question Storms proceed Dave live. Thank line you. The from your next your Dave Please is coming with from Stonegate. question.

my question. Thanks taking Perfect. for

touching able an again, seeing the being are things forward? users program How that Just get as REAP being a credit on USDA end maybe -- credit conversely, to or environment industry competitive on going the issue same environment. for back against you advantage either the peers like current

loan We of have credit way guarantees. in the

the for cost for up eligible In construction. credits build use investment and reimburse us loan guarantee credits, biogas, we So specifically of to credit. the a tax tax process project. the then basically to tax XX% And production investment the we're credit, tax

make we building production natural of for as a credit to build the fuels. go-forward then then On tax we for to assets, submit tax onetime So that investment XX% up basis, investments can producing get we for credits asset.

fuel, clean credit. features a fuel, tax biogas, Certainly, initiative low Direct Pay of carbon the like. et cetera. potential tax Our then And ethanol the plant sustainable on a and as set sequestration, is for production has be These for tax are carbon eligible to fuels expected different credits. aviation credits in with some that we have

talking banks and debt X- that biofuels guarantees have facility separate a the to today repay basically important loan far your we back five those time now that are make much a almost commercial would about from That's more it our economic expensive, tax and years. debt guarantees. in Loan impossible you to So it. term. credits X-year Most build have be than is that to the to pay seven all less

of during exactly closed is to going a what even structure to or for that's the an assets. do America construction any phases multiple program. with extremely for and that Renewable building in the and USDA that's attractive did term have we're And XX-year program, so in pay what a to Energy these So year continue not principal we

That's perfect. Thank you.

you, Thank Dave.

coming live. Instructions] Thank from Please line Ed proceed question is Ascendiant from your your is question. Woo The with Ed you. next Capital. [Operator

Yes, is, congratulations. on My your ethanol? question what for impact price and demand for outlook prices is oil gasoline its and

to make have think largely. oil expressed in fall about crude deep up I'm has to Saudi to they barrels price to they're couple Russia drive production. And increase guys of said And that Biden, I'm letting wanted they prices And and the that decrease to crude when which X push up. cooperate It they $XX. of told are OPEC+, actually only late into going day order We oil Russia. of a above they are two concern happen, million Joe that control the sitting Arabia going to by per have the and below price weeks nope, under not $XX. means ago in oil in that the OPEC down production fallen plus $XXs largely and there of it

have crude an in the it's in oil So as prices. those capacity. we've refining I you which cooperative, add alone, diesel we or And think States, we're of that as pump. United oil refineries. not XX in Remember, are refineries. $XX buy went we fuels, to gasoline, profit It's actually California you in the got sustainability to the Well, plus reasonably from the environment long XX entities crude have at

see power announced it in was major profitability X. week oil the XXX% pricing have refineries think, I here last increase the companies the, as of you So in in or tremendous

is margin is pump, the biofuel. at comparable actually So relevant an what price that selling which to our additional to oil refining is

against. and margins point least refining make Act, to model lower a and three pricing and make carbon for that's course, lower of oil prices the incentives. which getting produce And $XX us to to petroleum to to It's years, compared the relatively fuels, those the stable for crude then high at then, at of with dramatically of in according carbon or products. oil CEO So these Chevron higher Reduction lower Inflation fuels we're encouraged put is intensity

answering you. for guys Thank good And Thanks wish you luck. my Great. questions. I

Thank you.

floor the comments. to questions are to Thank for you. further this turn closing I no at management over like back There time. would

in Perfect. that's talking Please opportunities website. the forward participating and growth Thanks and review shareholders, about of the you today. to look company analysts who the Thank at for Aemetis. Aemetis Aemetis you. presentation homepage the the others posted joined us with investor on presentation We

written version Aemetis today's Aemetis attending where version audio website this the update. for Investors business post a and and call. of Aemetis earnings you review Thank earnings visit Paul? Please of conference the section we'll

teleconference. today's concludes This

your this You disconnect you for may at Thank participation. time. lines your