Aemetis (AMTX) 9 Mar 232022 Q4 Earnings call transcript

Welcome to the Aemetis Fourth Quarter 2022 Earnings Review Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis Inc. Mr. begin. may you Waltz,

Welcome Review Aemetis Conference Matthew. Year-End Quarter XXXX Earnings call. to you, Fourth the and Thank

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

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

our respect call, and making warnings During we'll considered future that appear These financing without to disclosures forward-looking performance, our be with limitation, filings. be must cautionary plans, plan. and in our expectations business including, conjunction of opportunities the SEC the respect statements execution with today's statements, stock activities to statements in with and

made events that risks that and Investors are from uncertainties and forward-looking future involve call on differ statements all made. this the materially may cautioned statements

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

the Our as these believe non-GAAP review a a source this based period discussion measures use GAAP on a presented. or during because we the measures for call of supplement proxy results non-GAAP company's may of include as on to cash financial serve

months which on for the is website. to ended A XX reconciliation release in directly included the our the comparable most and XXXX, our earnings is XX, December measures measures non-GAAP available of X GAAP

gain income calculating terminations, interest or unit, as deducted tax loss lease defined and expense, to certain other net on and expense, grants, of and extinguishment, gain litigation, accretion net A other share-based expense, depreciation compensation income, is on expense such plus amortization Series on extent loss, cash debt expense. expense preferred or EBITDA intangible Adjusted income the loss in

for the I'd fourth compared million the Revenues The Now fourth decreased quarter $XX.X were of gallon to per ton to price quarter XXXX like million ethanol the XXXX a XXXX of the to XXXX. per XXXX. of fourth the during of price metric during of quarter XXXX. the gallon quarter of for fourth Biodiesel $X.XX results at selling of the $X.XX metric fourth from per financial for $XX.X review quarter sales quarter fourth occurred of of XX,XXX ton. $X,XXX during

$XX.X revenue India of Our $XX.X biodiesel period. million our for segment million California revenues, for and accounted accounted of ethanol during the

$XX.X bushel gross $XX.X was same the for our sales to million per quarter million of compared in of from delivered quarter India quarter sold a the during $X.XX quarter bushel during XXXX million Cost of biodiesel to loss of $X.X corn of in $XX.XX during fourth from fourth incremental $XX.X period Gross fourth quarter profit XXXX fourth an goods increased XXXX, resulting to of the million the XXXX fourth per of XXXX. the increasing during the from XXXX of average segment. and principally during price the

during million Selling, operating profit during of of an Operating $X.X XXXX. to general the fourth million quarter XXXX expenses compared quarter $X.X for remained XXXX and was fourth at fourth of and the loss administrative XXXX. quarter $X.X of flat million the

the completes the XXXX XXXX. quarter end fourth fourth the the XXXX. quarter end of $XX.X the XXXX. Cash the of was million loss loss our at $X.X fourth fourth the of million of a quarter of quarter compared fourth quarter Net of $X.X of net This of XXXX for to was million for $XXX,XXX of compared review to at

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

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

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

representing new revenues of $XX grew Aemetis XX% in million sales. XXXX,

For oil and strong cash into flow planned debt-free. production built and Interestingly, driving X feedstock from all strong our next facilities the refining the facilities and coming for positive flow are growing renewable biogas, biodiesel excited full India this feedstock and in XXXX, the about year, expected we years. are are of cash refining growth glycerin revenues and biodiesel, already

time production, are and the underground year carrying of gas begin delays expected for selling natural approval value, renewable produce and we processed, California into biogas as and the LCFS to the renewable that Board biogas storing full to this will the to are market carbon California XXXX pathways LCFS on pathways. as X be revenues our books all are Until gas their built we is to awaiting related facilities we Resources are Due that able already of it the approval natural inventory. generate

that system completing costs plant we of other Keyes accelerating control while our important month, cycle millions intelligence maintenance along lower As ethanol upgrades. decision of energy process biofuel with a carbon dollars with later upgrade the a discuss artificial are several driving will save new capabilities, by this installing intensity reduction of our and our we for

U.S. has passage August funding toward in The and external renewable during year. Inflation in $XXX estimated significantly India of of and billion environment past reduction energy reduction the provides the Reduction an The carbon -- XXXX, the Act of regulatory political fuels 'XX for renewable improved projects. the and pollution carbon and

LCFS -- per credit X to expanding $XXX than next required to month, stated staff plans number expanding the increase to of carbon the Air scoping sufficiently Last CARB with low Board fuel standard by starting program an plan under the where mandates credits California the of LCFS years webinar, held the that a from XXXX, more day. Resources significantly the price in their credits the about $XX sufficiently in increase

We are of in plan, fellow carb support scoping while program. and working to details significant a addressed positive with And biofuel need we're that producers achieve the strong our staff encouraged the to closely CARB's be outcome. LCFS

LCFS for As recognize CARB. and to required we by markets sustainable U.S. that benefit prices per of will have credit to large produces indirectly refineries. businesses rebound believe goals renewable expected than the aviation by as meet the number of expanded our last years, couple will $XXX These be we in for LCFS our decarbonization the U.S. credit of all credit the diesel credits fuel revenues and business set that feedstock Aemetis forth for generate India more

milestones plant key construction of biogas upgrades and in miles to important other XXXX, During by pipeline, we the XX Keyes many ethanol the India operations of profitable the additional achievements. to biodiesel plant, achieved growth

Last month, income now X-year year million and we year updated million $XXX of XXXX, of EBITDA plan, the the of billion projects fifth in net which $X positive of Aemetis plan. revenues, $XXX the

production and significant passed credit X-year standard while Reduction fuel The of updated in into reflects the that increased plan adding revenues prices. the August law the X-year was during impact XXXX Inflation positive in low Act period. California continued carbon growth

plan what a we that conservative LCFS than believe credit took X-year The view. Aemetis we prices lower to CARB's are as be XX% assumes plan

projection, provides and from of significant growth. our to revenues than should of estimate LCFS credits being enhance lower therefore, a our upside CARB's the Our profitability pace

is The Federal Reduction large a funding Act Inflation provide of amount expected to Aemetis. for

of sale from X to by more sequestration and the next of investment fuel million renewable hydrogen than $XXX COX receive we and renewable years, tax operation credits production facilities. generated construction plants, expect the and production During facilities the

not of to source of market has just be build opened new begun. for cash producers. provides tax credits tax tax Aemetis has transferability under project purchasing The expected financing the flow after sale a other from a seeking liabilities tax renewable and investors to large The by IRA offset of credits important energy IRA credits to facilities, production

biogas credits in million tax more We that to we $XX this more we date, have January primarily investment investment tax COX IRA million complete first To reuse expect of generated to credits investments. monetizing this tax year. year. $XX we credit our generate are our tax sale, that from working generating project began currently credits credits, believe tax we than of and than of And

Agriculture. guaranteed we interest the the by projects. is XX% of fixed rates rate During October the is XXXX, average debt. The we of interest and Department is continue initial the a on best U.S. years, borrowing that in and for our interest our prevailing most XX-year $XX recent example to fuels rate below make significantly X rate in rate The progress obtained XXXX for of reducing cost X% million renewable reduced believe for loan is interest

'XX, As In Capital to than and bridge contributor lower expanded interest our funding. in our our reduce progress senior loans, Capital lender, rate Third a Eye Aemetis repaid key was to million rate which $XX Eye XXXX. higher more to interest access to Third 'XX

interest interest facilities. In with on from the and loans Third continue Eye higher continued than credit the interest to rate has Third lower forward utilize year, past rate look more we new Capital. Aemetis Capital credit $XX our facilities repay drawn Eye million to rate We lower as progress

a investors the in Biogas Aemetis, source Aemetis many Third our and business the preferred has confusing of in concern. For investment Capital Eye redemption stock planned been of

late XXXX biogas of million investment of in building enabled preferred grant funding debt, to October million attract equity begin Eye to in into of of million $XX long-term Aemetis combined Third Aemetis the we project USDA The without We funding XXXX. until starting $XX added guaranteed funding. Biogas of $XX million used $XX the

extended of redemption In quarter preferred an this Early we of the subsidiary to of extend redemption the year, on Aemetis equity this from Capital. redemption and negotiated again, agree may Eye fourth Third to our Biogas the the XXXX, XXXX needed. if extension May Aemetis

XXXX. We are investment stock parties, the redemption Aemetis have to QX multiple to the we indications and strong Biogas working from complete during preferred and interest are seeking refinance of

long-term our However, goal share the to our company. of investors growth vision primary who our for attract is quality

and is by feedstock Capital to using Eye enhanced financing with project March by Biodiesel, production flow positive XXXX. development Our the up from Third our facilities, cash refined overall in to capital million was tallow signed growth and plan India of $XXX Biogas, facility fund ethanol, working that glycerin credit India from

by Renewable We Third $XX In we interest the as USDA America the Capital under from funding the received past aggregate to project Eye in reduced facilities million $XXX million program than rates. financings million credit provided REAP. of obtain for of plan the two guaranteed Energy more $XX two about XX-year quarters, known

more are We million funding process loans business of year for for long-term closing as diesel other our well REAP the business. biogas debt $XX as three Jet in this our

credits decarbonize tax emissions. of Reduction available desire under significant business to security cost should and and are time a the amount reduce of reduce The investing that by resources develop as specific structures regulations to a are increase, initiatives and the driven Inflation maximize These the transportation. We Act. value petroleum in to to greenhouse renewed gas a need prices the energy of interest fuels implement

was The India briefly is and business X% Let's Biofuels our achieve updated Biodiesel billion Biodiesel in implemented per in to in India. National to X.XX a XXXX review about blended in is Policy India. being gallons equal year now

last up purchase plants this are successfully tax a feedstock fall marketing plus a production. the expected biodiesel used of government capacity X scheduled on Aemetis offer production diesel. formula companies is full is a that which April India, go was entire On under effect biodiesel to issue a into The to bring biodiesel into to new three tender pricing tax plant very of to in year, to oil the

The companies. tender to the to and expected the sales is companies the formula by oil marketing X-month the pricing be timing ongoing of format oil for marketing

We India pricing. the successful growth for production be expect due to to predictability formula biodiesel of the in rapid the mechanism a of the

biodiesel utilize This blend country. capacity achieve all of production existing fully India is expected the year, X% a in would the to which

to plant Our under renewable is diesel situated in law. importing or India is since India benefit uniquely allowed biodiesel not

production India to of and renewable tallow pretreatment refine sustainable export is diesel be U.S. unit and furthering to to fuel. utilized the the aviation crude Europe in for The tallow expected feedstock

U.S. have last Negotiations production refined late been renewable to since refined diesel is production agreements and begin underway in to tallow XXXX offtake expected QX to plants. exports tallow of year support

we biodiesel debt Since subsidiary tallow and has our for positioned glycerin are year million facility at the plant constructed, full the India fully the profitable per gallons no XX operations well refining plant, are capacity. and

of the President some fuel Now Andy advanced the will Foster, Aemetis Biogas review Andy? and highlights. Aemetis businesses

Eric. Thanks,

of in business the QX natural utilizing XXXX in-service gas With closing the program, our million in recent upgrading and to Energy X of renewable commissioning the Biogas of for of projects. Renewable the completed We biogas We interconnection $XX We RNG the We PG&E's Aemetis financing delivered RNG completed the first for of California dates operating. completed with America XX commissioning now USDA installation several pipeline. facility. unit completed X have digesters the miles Biogas new pipeline. fully

will digester slated digesters We end of by the midyear. completion for the complete by March construction X seventh additional on with

depending we'll network. USDA We've Additionally, digesters financing. a construction more the permitting of now and dairies approximately XXXX, to end new timing up in of on of up of and number RNG Aemetis begin also XX by XX the signed the dairies have

LCFS for XXX,XXX RNG, approximately year MMBtus per to generate this dairy RNG. these CARB intensity digesters pathways receiving are After carbon of X expected

credits. obtain that We have LCFS allow RNG to LCFS begin us production pathway to approval generating will submitted our data

carrying underground LCFS inventory, as pathways, are approval the mentioned. the RNG and storing await Eric as we While we of

volume applications or staff closely process up to help the and limited staff with take CARB of at timely CARB review working to but we a approval resources X year more high approval. LCFS and to the can Due anticipate CARB, longer facilitate

executing unit, all pipeline, centralized the we biogas dairy are to which the are now. digesters focused interconnection the Operationally, of facility to production of Aemetis construction and in the PG&E fill Biogas RNG operation on

Department and been has project natural California related Aemetis project other of from -- the of the dairy for of the million date, to of government To biogas Energy awarded renewable Biogas California and worth $XX PG&E Department gas. Commission, Agriculture, and production agencies Food grants the

plant. progress the feed Demand distillers of moment and renewable animal production have for and used in ethanol corn take ethanol Let's discuss value our increased as at offset steady for in grains California pricing California, for to XXXX. distillers wet cost increasing a oil helped corn energy diesel to or

inventory spiked extremely unfavorable and the by Due restrictions prices storage California's margin by feeds to large environment. more California, an than on gas planning, gas Paso gas in insufficient pipeline that natural and December, natural El XXX% utilities creating

turn to efficiency several turnaround plant energy February which this cycle opportunity We during and of and and this implementation and maintenance decided challenge gas natural during extended period as high an ethanol prices, extended into of an January accelerate the undertake well. upgrades into important QX

plant electric and ethanol or will Our renewable to upgrades high-efficiency by us sources, pumps solar microgrid California local and allow low renewable our using motors carbon zero intensity powered electricity. power operate including

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

natural significantly value result plant. to petroleum-based completely use at for fuel or is with ethanol reduce goal carbon-based reduce is Our improved ethanol. eliminate to energy the LCFS and state's in eliminate focus approach or Keyes of keeping sources will our the This the gas renewable in significantly

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

mode in months. First, more installed the unit operated for been dehydration production full Mitsubishi ZEBREX ethanol has and electric X than

of annualized XX%, to almost when Aemetis of our and ZEBREX work of our ZEBREX our Mitsubishi natural carbon our save the and extremely of by -- our to are early unit energy and to expected with millions ethanol the operation use dollars unit thereby biofuel. continue refine the positive. fine-tune in but costs reduced the value increasing which The intensity closely results We reduce gas is

result expect to unit a completely ZEBREX the the of as the improvements to maximize upgrade system. in commission design some implementing summer of currently are We testing value and this

the of closely battery for EPC system. We million of are unit provider, Working grant solar to from designed microgrid Total, is we supported The CEC. of load solar are X.X solar power with by project the battery This our ethanol approximately middle generate in is of intensity electric and an our microgrid and operation with balancing carbon backup for megawatts zero the at emergency cost $X plant. operations. the with construction installing technology backup low

costs XXXX of lower carbon and ethanol. expect and We installation in solar -- to complete energy reduce the thereby the our compete intensity

vapor reduce phase. and procurement will The recompression system and is detailed and natural MVR equipment gas final the engineering further or steam in petroleum use mechanical

fossil system the MVR in the Keyes to reduce XXXX. approximately becomes system operational when the expect gas use plant XX% at by We our natural

plant ethanol of Currently, significant in natural the and MVR and the gas so natural reduction costs ZEBREX in year, per in a improvement $XX system dehydration is exceeds gas a costs after natural This for XX% reduction system. expected carbon the to million XX% expected is from operational. cost the Keyes gas savings reduction carbon intensity addition intensity expected is

cellulosic to of us of cellulosic production will additional announced and One and a is note, impact is DX tax enzymes portion million $XX additional the then LCFS qualify This with our for will million our milestones the on performance $X a value, EPA production business gallons of In item with plan. federal $X.XX the that the Eric? add in valuable RINs and the ethanol begin with and summary, to expected cellulosic. of allow financial rule be for by and ethanol. Aemetis recognize process credit be we Biogas the and overall per April, will plant operational expected project gallon ethanol changing X-year track recent annually. to ethanol between to continue The

Thank you, Andy.

our XXX-acre year of well in as diesel took project. aviation project and our Riverbank, A fuel Riverbank COX renewable portion construction aviation discuss of of diesel ago, carbon plant the zero renewable California. our Let's the fuel well site operational sequestration as Aemetis and sustainable sustainable for Riverbank control

$X.X and Airlines, Japan billion and Qantas Delta Airlines, signed with American of other announced Airlines, airlines. than have more We contracts sales

be to produced now blended offtake million at aviation per XX the gallons for contracts have about completed plant. Riverbank fuel sustainable We of year

Riverbank fuel. use Area petroleum be blending San to sales fuel neat for with jet the aviation then pipeline Francisco via the delivered airlines. blended SAF The the to SAF for sustainable production by Airport trucked plant the the San will will agreements, be from Under Francisco Bay

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

this for the the jet even entirely market partially than engineering jet in generated a higher legislation aviation to look the included year. begin or about credits is XX% to by Incentives forward and passed construction is Riverbank offset plant fuel carbon by completing order by the airlines renewable of airlines. and in sustainable recently petroleum expand IRA later fuel to allowing permitting price We CORSIA diesel

Capture. oil per Aemetis X in emission for capture have our on California California our of to COX facility the in in sequestration University that plants the issued natural as cement by XXX,XXX highest identified building was Let's and a the and of return that the the ethanol Center comprise investment plants Aemetis largest currently review Aemetis compared plant local sources ethanol plant sources Carbon from carbon reuses carbon refinery California. subsidiary, COX X in captures capture emissions XX for power the Modesto, metric gas and a October potential ethanol from COX XXXX, customers. In tons plant Stanford year near study COX

plants wells, X of our Aemetis of carbon from diesel the up COX drill ethanol California. plan plant to metric per inject to and Phase plan jet year we In biofuels own into near capture X we biogas, in X our sequestration tons which to sites project, XXX,XXX emissions

emission supplied empirical COX. wells by other permit. year X planned year sequester million per With includes injection of total to to than of construct initial provide phase drilling of metric additional million metric each X the COX a wells sources expect of classics minimum construction data a that X tons tons of EPA more characterization for X per COX The injection We have to capacity.

XX During pad characterization equipment site EPA road a permit. XXXX, the to purchase heavy and drilling Class well at well our well for and a Riverbank acres X soil for the data completed Aemetis access of the built provide injection

we with engineering the well drill for after expectation the characterization the process X in first characterization currently are will that We and permitting an Riverbank site. wells

refund Act of of an The carbon X as of feature per COX expected $XX could credit Inflation fuel cost year direct a each to ton tax from support provided sequestered project, direct X as per The of cash for equipment. year Aemetis first $XXX tons projected amount capital pay $XXX direct by of the We a planned tax years provides injection metric related per million Reduction wells the of years Federal funding low project COX estimated X Aemetis million pay federal the metric funding million and per well pay believe COX credit from production. of the the the carbon from per which generated capture $XXX year the estimated ton $XXX the over first as year the an X the of standard. of a fixed million and $XXX million the

a of diversified fuel, portfolio carbon zero renewable In using intensity renewable summary, carbon aviation COX dairy low and biodiesel Aemetis is electricity, and gas, India, natural carbon negative intensity expanding diesel sustainable hydrogen in projects, sequestration. ethanol renewable

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

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

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

[Operator from Jordan Securities. Levy Instructions] Truist Your coming first from question is

the credits there's still to give us each for Eric, you how out being high-level start deck, agencies, tax IRA. on of of credits with segments can maybe details monetizing worked segments? you outlined on a for of the thoughts about within those tax estimates each just lot just the you're the Knowing the out your investor thinking your under

to owner array to the The participate actually become it's have X the and wide buyers. an they mechanism, of which transfer credit the investors Under what allocation potential a mechanism The time a IRA in in an project. up of provides wind, for value. certificate call solar we certificates tax investor for an to opens

over of firm state tax $X market have insurance who that federal of credits share billion has working for millions broker and and that credit dollars currently XX% investors the the guaranteeing of We brokerage of tax per has year with and done of directly liability. instruments tax investors over in multiple are with hundreds

I what over a the desire cetera. et in forms file this come from about of months, time do point to course clearly, the a the But amount XX greater for is strong of IRS larger investor transferability, to there clarity appetite and think that next will exactly the at transactions. in

million happen so a generated we to February. And we tax than $XX more in of of be having position credits unique in January and in

where And future so potential actual negotiating projecting we credits. more investment are transactions parties production are or many tax other

as just enter maybe just you going could follow-up, the appreciate if to midyear and a equity on that of biogas. preferred on gave the comments, color your And about back little pieces look Maybe think do looks transaction you there? expand moving a for process we as there maybe and sort how and what I like to the a you should

is it's successful look Capital very they at some that believe set you to is successful made. at when seeking that Third best way Certainly, very comps, the a the liquidity it investment a think I they from look very, of comparables. that

have we to or cetera, digesters, enable growth additional us zero probably but achieve the pick plan, up at et will pace not looking X-year only but that our to to even the so building low exceed of do very even it some capital to acceleration shareholders. dilution And decided

engaged we've investment So bank.

documents. operating have We

a Eye to capital. to as of zero a through well to target take shareholders. Third expected we're expect result going in QX that is have -- dilution expecting currently, we're And preferred as low and I some the interested refinancing zero providing already additional investors process our or -- we're will growth have in We

coming from H.C. Your next Amit Dayal question Wainwright. is from

a working of as us just your it. CapEx for are and own of your giving a operations XXXX. mean on capital along sort to lot you going There's well as growing with needs activity would Eric, bridge investment

So how working in to cost capital just and to we bridge needs wanted understand [XXXX] needs looking other operating are

includes been ago There approximately million availability and $XXX Capital a combined with you, the fully low-cost and with fund we $XX has credit line signed Third as depending that for then see funding have equity contingencies flow. companies totaled for working working this capital utilize millions to we Thank But capital $XX from On company. of activities attractive we million year project available USDA. could adds year. of Eye utilized. -- that additional X our to approximately being conditions that's, of dollars don't million we positive capital that, all Amit. XX% cash perceive the The of And million you as course, in that what and arrangement. $XX up is funding of slated top funding is terms of potential of the That on the

As business sales million today, generated our company sales, of OMC we most this about marketing $X.X India reported recent in biodiesel India. oil in margin

that's our in X are that And capable positive process We begins, has going a generate business a is with the that under less business starts a several renewed companies. of month proven marketing itself cash April generating months. million flow. sales. of of in into X believe can shipping alone that than we And dollars tax should when result is when about X oil months' contracts worth million $X

$X So a XX we a year business, to million-gallon India to a opportunity the opportunity business. that, strong get top that million it's of the supply tallow we're where and have production but very gallon. and of on begin. our to this gallons is what expecting full chain, due That's XX margin We there, is at just shipments $X won't

of later storing biogas, natural to of testing sometime gas amount this year cash begin injection the XX is was underground now. underground days completed. renewable we're revenues mid and because of expect significant CARB this our partially for And production biogas, to The right a pending generating approval process of year and flow would from we

of ground, when to tend be come the they So accelerated. they out

production. it's substantially where increase that to faster pace have year. this So we And looking We're digesters. current the of than X

our biogas cash contributor company. business the to needs positive flow of So a is the overall

long-term increment Eye So the from financing we're line an has then and operating we that and operating company flow, with Third Capital that all, cash USDA. all in the credit

next Stifel. coming Whitfield from is Your question from Derrick

your Eric, your is we your unrelenting that, that interest your dilution the and the for immense Riverbank of plans the on unappreciated several and implied under result pressure nature Having synergistic the said Eye reserve Third investors on assets. stock facility. the admire focus capital and matter, nature facility of avoiding for business, as a of the

there the your ethanol in U.S. aspects Given India in could the you SAF here, RNG fact you the capital-light money, remove could a year Keyes out and and business the delay from carve build huge ethanol threat? by have you PTC and business the implicit where scenario of the refinance for tailwinds funding a XXXX both RD RNG it and to is with that the business in for or REAP

We as receive a is activities. to other funding. our business basically project project unrelated It being that funding

So equity. put it, debt project. We've the is in we've transaction. project company about not we million, coming preferred we've million over X in a have parent it subsidiary And the invested and currently already our the the financing long-term together, slated already is It's $XX transaction, company $XX way last primarily of years a equity.

low we've phase already looking the commitment is complete. that are for then to engineering Biorefinery signed we actually And XXXX USDA us Assistance constraint Program, So and permitting letter.

USDA been municipal we do can again, already the tax-free for have financing. guaranteed that successful funding, in We energy by other long-term producers with renewable program America California shown have and very

dilution financing. to permitting primarily to done process just not even parent frankly, at and believe we We've it's the we So are that procedural complete all. a that's, a It's our company transaction -- investment. the related complete already

unfortunately, So those the going run timing, is at pace of programs. the to

it's the dilution effort have to dilution procedural. any all because we're So any just transaction, minimize try structured in really delay is our not actually not to to

we billion product for a looking on airlines and have staff billion of XXXX travel that. do be we're track all $X.X company, currently $X to to of And X in achieve and able

we continue goals minimizing plans. also our of So aggressively the push to but dilution to forward achieve expansion achieve

be lead not time in financing long until Eric, of clear time And items, advanced on point, to you place? the project that just the would have procured be -- long they some or

correct. is That

And landscape. dairy pricing or color offer the seeing as PTC specifically, the wanted Okay. volumes And ask competitive the of RNG is impact follow-up, then out greater XXXX? result as you suggesting a CARB dairy are competition a you I LCFS if to on on in could RNG

dairies RNG a a of which into happen. basically renewable X dairy then COX of gas. pipeline The process dairy issues business. that processing interconnect very to It's natural produced is actually XX% local have The turning and is and X amount has biogas, our business and substantial

state of attracting where our pipeline But XX-mile the investment. area our place. So and growth particular is local be will more in California definitely

in to XX neighbors -- the almost you of signed any whom coming make sitting now in dairies involved. many about have have neighborhood you they're that comments want do are Andy, We RNG?

that would interested No, I your that, Eric. developing affirm in there projects would to say people question, more are California. are Derrick, I in

many to I think do a to have with play come the lot scoping how really out-of-state plan folks will California. want in and

come some some in. got already CARB established main the what a in mean in going lot CalBio have does with do scoping are we But how to [MOS], other to guys You've the developers obviously, state, and plan going that state are is the up terms X forward. seen have think program of but ends I Aemetis, and here. I

question Gupta from next UBS. from Your is coming Manav

Slide is on my Eric, XX. question based

showing X you've XX Or should on -- Slide XX right progression? on we I then given think reason and come should the is is stuff, by and linear now XXXX. assume any clusters? there a year-end we these in done dairies work the pipelines

permitting X to be primarily is and once. of to look be at at on approvals very all frank an pace of basis possibly The digesters you, best of way CARB because approving our CARB with will annual that the

once. of financial perspective, an we're So CARB look building X happened average or at a and all approvals month, really we would investor What built at then pace a of so it come was like sort in, X in bunches. from the

I our estimating approval. and are So we're what CARB actually accurate RNG delay being it when producing we being conservative receive and a XX-month means underground between storing start it when that we is by we think and

But So CARB quarter, we the not current expecting X-year plan, a should give few year. and revenues of show you start you some And pace approvals over press our plan. months if actual will I approvals. releases CARB the look We'll in next we're the no the here our that evidence in as revenues we'll sense of more XXXX our next occur X-year end virtually of update the CARB actual that doubt approvals our until year really and what get because for do the is. fourth about

Our XX-month projection, we think is conservatively accurate.

There but and price Okay. are out low opposing carbon is are this I an Eric, pushing you the lower there refiners who -- carbon price. yes, out there And for love force carbon you is, they're question a then there. want second the prices environment, mean, higher

you really So like versus side cause from price out go to this do the What do and how do gives ultimately to are understand will that. you you here? want saying who go We the I'm things to there do swing don't to price just confidence CARB your you refiners raise carbon that up. gasoline to and trying we

could if us you talk that. So through

Andy, do you comment? want to

is this question. Andy. Manav, Yes, Great

heard only technologies, clearly has renewable or RNG low producers don't mandated you that whether CARB to is for price this or very now. LCFS what at the that's bad other it, petroleum, hydrogen XX% CARB across And liquid desire use the everybody. look. think different year it's United they think I last are the are name in right the wants people I over fuels from And think who I the or States group rewards do. don't petroleum

rescoping as as weeks LCFS $XXX. dramatically couple were addressing over they the as far different sure, the you a plan on result I'm it's the And of pricing is part think a showed a of probably workshop you I saw, that Manav, slide that. ago, showed

clearly, that through. made So has message it

we'd which more balancing CARB has We'd going becoming XX%, to more think take now to think this the -- really And I I than more I aggressive, like rescoping these Rather We'd of to think it's XX%. to program it forward. going lot like see But to even now that push moving they that, making aggressively. projects with a do. that's see lot what's do waiting further. a sort they're been announced like going plan. them to of see that of clear. And see -- you're to

this. I very obviously and with of with, good it's that again, the that other other about winners but something lot time end think yes, are we a CARB it's a been producers having, constructive the at have frustrated day, think, And all not So spent of state I CARB staff oil we've or discussions the the the good here. any look for producers

itself will think next months. here the and process through that itself over work I so XX reverse And

benefit Last provisions, mean of fine, is good. If that puts CARB that in is question. dairy RNG out which basically so state Does RNG you disproportionately? dairy in-state and not

providing was production the California's producer, in end doing book helped as along being the and starting at yes, of don't used end-state that that's they're state. this borders, -- it helping about when that in support It's producers. that really of talking renewable speak, is natural being proposal out production. And to currently for the but have It's good California now even good that they're from industry is program. think it. it's natural we is In-state proposed view environmental our by foundation is catch support of to to what considering. to of benefits to claim. open It's a they're change comes day, You're to to an for the doing and up program book so to think gas the area gas brought claim out-of-state wherever the state We important the necessarily the lot for I the recognize

from we Manav, So not -- to think kind looking think a mean to there production. perspective, think support those some don't to barriers. erect potential I I'm larger idea we could continue great good I out-of-state to be sure us, but And even it's benefit it's a of at it

California If impact support too. we out-of-state support told to sort I localized in-state health clear that they we've of And to that, wants us made actually think with and credit, producers reward a producers that, CARB. have

it on our good California's it's gas supporting for have produced goals. fungible -- network the So country view think of industry is the production a to across we that

Blair question is Matthew next from Your coming from TPH.

fourth the external external I sales. to looks of like ask in hoping quarter RNG sales was this It the first [X,XXX] quarter. about you've that had that's MMBtu

number that imply So I number external that you sales? have receive that guess, an And you one, allows two... to LCFS does then pathway did

No.

But we Just through process to go to sent storage. that gas And we're keeping environmental of gas. do has that a just been put the clarify, where gas -- attributes yes, storage. that's obviously, we into the

were But were of pathway dairies have pathway. -- approved comes now the all process dairies plant. been that. But to have X ethanol pipeline, for out approved approved So not the there operating that the We interconnected the with that through revenue that no, yet. utilizing incremental we're of doing for is the in we we have our initial go the the through back that -- LCFS of getting gas we currently, X

Okay.

follow-up. to going my that was So be

the RNG through late approval approval, to mid I XXXX. guess, until, said I you wouldn't So that's think pathway come -- the and why

a or of that that that the producers heard I a XX working are CARB I over to input has they're from right It's process XX by adding well, And currently now. queue hopeful. and Yes, we're has applications as that like resources. -- improve in think, got something lot over know additional on

we forward help all of X that continue delays these and lot And which development in year, into something That is alleviate to developers other we'll a is to out to to been that's streamlined really until move of then that's to that that not our as Tier Tier producers a process the but that. proposals greatly scoping will application next a have build process, go look expedite unfortunately, X seeing. the be more should one plan hopeful to application going

is But mentioned be both biodiesel tailwinds first Okay. the on talk here. months you your the Could about then That's nice QX that quarter. I some biodiesel? And biodiesel quarter glycerin sales and the into segment. for India coming first know not could the of tallow on helpful. you expectations overall the are what for for a India expectations in -- there the glycerin, follow-up my exports. We're your sorry, couple April,

government things India actually is once But that positive is good the it's this expectations has it for us. talented that at very, very slowly. very proved Current doing occurs,

out anything good very expect the So first out do I I quarter. do expect the news first of of quarter. not

coming we informed done, market the since other will feedstock, April, than about we have quarter. there in good in what's almost operating which news won't buying be delivery So will million we hopefully plant, the actual bought first The of able $XX shipments. which until start be occur for upon April. feedstock the to ready and be that to worth revenues get have done But

is from Bernstein. question [Jed Alliance Your next coming Fareed] from

Derrick already asked my questions.

from is next Your Capital. Ed from Woo coming Ascendiant question

to progress. like on monetization It looks considered any has there. debt of question very no back operations there's asset that Congratulations no India. are getting My be and Have you to debt. you guys guys mentioned normal seems valuable you relatively on a asset the is of that that since it type

exports this is getting new has positive it flow to of cost-plus and cash proven for a to environment. will just for source in of monetization new And current be very revenue production, that very, tallow Our us. full be us it business a

generate So that's our current cash from to those assets. strategy

tax biodiesel in gets diesel couple X% in And biodiesel India. also and $X.XX with very sorry, we diesel. new that -- a India, therefore, implemented weeks in stock blend leading However, diesel interested company of the of the the biodiesel, beneficiary per the I'm market are leading in of gallon been India has a

be free opportunities or that. private the company. goal we certainly is production actually for in of flow So there parent structure will of we do that kind of dollar generated equity just from But will come anticipate current do other is is that IPO out that there every for cash an margin our

of as plan for see supporting a X-year parent the tens overall that of So of cash company, of dollars millions initiatives. the source we terrific

Stonegate Your Capital from next Dave from Storms Partners. question is coming

expect year? or more Congrats infrastructure Or completed, digesters the your biogas so approval other on pipeline. at outlined that current the we XX you've for spending the that side about is all biogas the have to any miles of things? goals getting it you should My the now the adding is on miles XX LCF and additional question more

more building obviously No, on because infrastructure we'll continue we're to out dairies. spend

As one of far as that level, a XX-mile pipeline another not those. probably

or small goes the at additional and that the that spending dairies equipment we a have now, that various connect associated pipeline digesters that are the of will out around is primarily, going to be with As X units the be building the to amounts there mile dairies. But that, dairies. we the connect pretreatment some

it. say keep eye I'd other one on thing that of your kind I

this been still is dairies will developers. the out think built that in development further the pipelines state infrastructure be get by for or Aemetis the of I final other sort true and away are as tend the kind of in we that's to adding from there be the

that trucking well. as you're have are to going will solutions associated some to be and infrastructure see going So that deployed, some

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

that Todd? others to look presentation the Please our We Aemetis plan. you is on company participating Thank about growth talking the to along analysts Aemetis. opportunities of X-year review the the website who shareholders, us posted home at Aemetis forward with Aemetis the and you, in today. with page joined thanks and

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

today's concludes This teleconference.

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