Aemetis (AMTX) 3 Aug 232023 Q2 Earnings call transcript

Welcome to the Aemetis Second Quarter 2023 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

Kelly. Aemetis's Thank Earnings to Welcome you, the Call. Review Second Conference XXXX Quarter

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

today The presentation for available or the section website. call download Investors on of aemetis.com is the review for

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

with expectations respect opportunities business our performance, call, plans, respect of the stock with to today's will forward-looking we statements, statements During future and financing making our execution be activities to plan. and including, limitation, without

disclosures in may cautioned These with risks conjunction from statements warnings the call events this and forward-looking Investors and statements made. are the cautionary materially be filings. involve uncertainties appear that considered must that made on SEC future and differ that statements all in our

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

the and ended XX, sources reconciliation the available GAAP measures is as website. believe today these earnings cash is for the release measures our of on measures of comparable six Our a discussion non-GAAP June periods directly included during based non-GAAP proxy on review months the which our presented. GAAP uses measures three a to company's XXXX we because A in most for call as supplement will results of non-GAAP include on to financial or serve a

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

the XXXX. of XXXX were of $XX.X million second quarter quarter review the driven financial sales Let's India by quarter for principally second during the Biodiesel. second from XXXX, million $XX.X Revenues results of to for million, $XX.X compared the of

operation of extended efficiency maintenance cycle, revenue implementation $XX.X ethanol of of after acceleration May for important allowing plant restarted of California million the Our for and allowed an several generation the which during ethanol upgrades, June. late the

average profit second bushel XXXX second Delivery corn $X.XX quarter XXXX $XXX,XXX during improvement for price to Gross during a million, from of quarter the bushel per a gross second loss quarter during an XXXX. quarter the the compared the significant price decreased second $XX.XX significantly $X of to of XXXX. per was

administrative million second expenses XXXX, of million allocated that second Including the plant to were selling, were period. $X.X fixed for million quarter XXXX. $X.X to during and and general of during during the Selling, $X.X maintenance administrative of expenses compared Keyes the cost quarter sold general goods

Aemetis million and other incentive issued $X.X million second XXXX. quarter and $X.X accretion connection preferred quarter excluding in $X.X with Interest during to expense in Series units during the was expense million second XXXX other million, our A subsidiary, the XXXX. Biogas each compared second Operating $X.X to $X.X of included quarter non-cash quarters options related SG&A considerations loss and expense the under of stock for of stock plans. XXXX and was million

quarter and Department $X.X of XXXX, the for from million release net grant the million United in including a quarter Producer the and million expenses of payments other the quarter second during received a our preference connection the Biogas $XXX,XXX impact to compared the XXXX. million $XX.X Net to of reserve second Program recognized with of stock its compared preferred subsidiary of a $X.X loss the Additionally, million. second XXXX, quarter of States XXXX, accretion XXXX in Aemetis for of of $X.X was loss of on Agriculture during $XX.X litigation of second Biofuel

Our other million three the June for ended of of adjusted India total the XXXX, Keyes quarter offset from restart the by contributed of EBITDA adjusted months XXXX. plant EBITDA negative EBITDA operations XX, plant during $X.X the company adjusted second million and a for $X.X of

compared of was Cash at the at quarter the our XXXX. review This second the the close million of quarter end completes million, $X.X to XXXX. of of $X.X

million. to million. in $X.X of investments reduction $X.X were in intensity Aemetis During the capital Aemetis related other projects projects Investments carbon capital ethanol first and initiatives company of related projects capital Investments half of Biogas XXXX, were million. to $X in were

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

Thank expanding our biodiesel you, and renewable producing existing gas products and on zero by our intensity India. in focusing and businesses below carbon diversifying natural ethanol Todd. Aemetis growing is feedstock in and dairy California business tallow

$XXX to than the We more positive of the year $X flow. website. review revenues of on of presentation invite five to are homepage and billion the executing cash annual grow on plan investors million company We Aemetis annual to a

the segments businesses California. five-year fuel produced ethanol, renewable aviation by with Aemetis low biodiesel, growth and produce COX in includes in The diesel, plan along renewable and natural carbon to our five these business carbon sequestration gas sustainable of

include and businesses India. refined these oil distillers California of tallow in corn Byproducts from

as feedstocks natural feedstocks fuel our as reducing SAF RD intensity for finished and as well replace plan and while dairy to and use gas facilities, trucking cost, carbon production to products, our emissions. we using air diesel So renewable our

second plan, EBITDA by important government India months. few contracts achieved already of oil significant scheduled next India of biodiesel five companies were the for are several year positive of fulfilled the of current during quarter over the marketing generating the million biodiesel We the business, million during In three quarter. $X.X many second XXXX have Aemetis the milestones the events $XX.X year adjusted for the of though

cost speed now being of improvement the We plus the biodiesel. orders of the OMC for the in are are the note now that's by shipping and new we to seeing procurement purchase pricing quarter, processes used OMC positive impact OMCs third steady

refined capital California business producers The customers planned steady debt making is financing. the free funds export active final is the feedstock and its in diesel U.S. outside India progress storage without for facility tanks at own now negotiations to tallow two renewable biorefinery of working with India The from to generally ports in underway and operation several sales discussions.

fuel bringing the digesters fully In Aemetis the to closed natural Air project to biogas $XXX the business, At designed the XXX,XXX funded carbon total year. gas MMBtu eight expected low we build of XX dairies our pathways for Biogas Biogas dairy that guaranteed loan an USDA combined standard issued intensity by $XX Board. Resources to MMBtus carbon second renewable dairies, for the per additional future are are Aemetis each revenues, of when a produce million California

under dairies annual XX to per flow positive generate cash than contracts, million extensions. are XX approximately $XX including and more year These $XX optional of estimated year of million annual primarily revenues

Until inventory. to the produce the the natural we our we full selling are at renewable gas approval renewable on into and able underground carrying will its California Air Resources is Board natural LCFS as markets begin pathway storing be books it gas and we processed value,

a in biogas dairies to a and XX have a gas and now built to We signed mile are dairies biogas production central the have operating for PG&E plan interconnection to five-year XX pipeline, digesters agreements already digesters RNG and build diary plan. biogas We XX unit. facility, build utility digesters, for seven pipeline

to Renewable long-term Biogas. of funded financing XX-year million The America Agriculture as $XX the REAP Aemetis by Department now U.S. financing Program project debt provided of Energy known for has

USDA $XX Aemetis of commitment additional project In An is million with REAP USDA end total, later of letters this year. for of process, USDA of by to we the $XXX year. in plan expectation Biogas commitments guaranteed this and obtaining receive funding funding an million

utilize of Though loans and we to the operation Biogas a negotiating of Third new the financing a Capital by for we USDA Aemetis plan Eye construction to lender. repayment continue projects, are the REAP

expect We the project. new launch with to funded repay allocation investment close tax Biogas of fall Capital financing financing to the credits along fully Eye the of Third Biogas for Aemetis an and this Aemetis a that

project biogas Biogas biogas the million RNG service in XXXX. half federal in by assets production Central first to Aemetis the Act -- is other than and expected facility Aemetis more credits tax generate of pipeline, Inflation Dairy Reduction Biogas Central bringing miles The XX under the of $XX the

the RD corporate We the of are in and plant the the completed sustainable we at expect million renewable credits SAF large receive tax tax gallon buyer nearly permits the closing for XX and to the construction fuel of diesel more two credit process million than $XX a of to Riverbank selling have Aemetis the upon these proceeds site. IRA primary cash In aviation sale. investment and business, of

posted site to XX-acre Quality Conditional The project Permit to to approval expected Renewable is Environmental end to in be California authority order close expected for to allow The and construct and September the a month. be next use plant the Diesel construction approved is in Fuel early of Sustainable public Act the Use by financing air approved the allowing was year. next permit notice of of and Aviation for

Business, COX California. first by and and awarded systems Carbon Keyes Riverbank for of recently In Aemetis the site the were issued capture we Capture the COX and ever Well the Permit designed Characterization Sequestration carbon sequestration and State

drilling well about access The Riverbank COX now have pad Class cost of road and high designed EPA $XXX,XXX. been compacted permitted the a data capacity VI for the injection and provide soil for constructed well is to planned Characterization Well The well engineered, site. site at

regulations progress Act with LCFS. and and incentives Inflation the Let's Federal the legislation California briefly Reduction external review including

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

XX in IRA placing digesters, QX tax are XX expected to tax late be IRS Biogas of month IRA the utility transfer and Aemetis of credits. the renewable business during the generated to guidance QX in in this single of the On six buyer miles next the so. from with The biogas XXXX facility interconnect service process corporate June credits issued and for to gas year, natural production or a sold January pipeline investment

be tax that generated COX. underground COX Aemetis We are of and reuse the expected expect Reduction by of business credits will the amounts by Act, operation be than substantial to and of the million and plant, Inflation transferable the next the sequestration SAF years construction by four generated more Biogas $XXX in plant, ethanol of

cash expected and The aftertax to is EBITDA investment as credits sale income other of a adjusted substantial and earnings. be generate tax of amount booked could

the staff CARB required credits LCFS of mandates. Program plans under Resources During the expanding starting where second Standard Board XXXX stated quarter, Scoping Low the the the to LCFS held Fuel number plan increase an by California that webinar in significantly significantly Carbon

XX% raise than CARB expects will $XXX which our benefit credits all India credit positive XX% LCFS Recent that reduction on discussions should have sustainable in per credit businesses and focused a greenhouse from U.S. the XXXX, the renewable mandates emissions to increased generate a years. LCFS prices. revenues indirectly credits for aviation of more for price diesel biorefineries. feedstock the gas our Aemetis in by up and on and year have two business produces of LCFS next fuel impact

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

project be Aemetis We seven biogas-to-RNG additional have now biogas Thanks, financing and installation me of eight are second digesters commissioning completed the dairy program. to biogas approximately Renewable this our generate to the constructing fully pipeline. These the with USDA operating financing interconnection We the per of completed our QX miles We Pipeline. million week quickly PG&E's closed year gas. recap commissioning $XX renewable USDA Eric. we XX XX America last Late natural million of digesters facility. unit RNG Allow XXX,XXX last will completed for Mmbtu upgrading and $XX the utilizing Energy We of digesters expected of year, milestones. year. first just RNG

and begin dairies in We more weeks. recently LCFS our coming expect credits approvals received to default for four approval intensity generating negative the two pathway carbon XXX

LCFS we inventory carrying we provisional are our it we credit storing for the our as await While and of it to RNG underground generation, pathways approvals customers. deliver until

RNG funded dairy is pathways and business fully the increase revenues approval dairies for operating The seven being LCFS With now digesters, will of CARB significantly with produced. RNG and each underway. digester for that already eight more

applications in significantly default obtain the in we diligently as range, are intensity carbon to as more quickly than We XXX we be possible, currently to working XXX pathway pathways revenue provisional CI process. pathway which while are full negative are in that LCFS using, the expect the the negative resulting

construction the the which additional facility, operating. executing and interconnection dairy biogas-to-RNG on PG&E XX all are of Operationally, centralized focusing biogas pipeline, our digesters miles currently unit, we're on to production fill the

our ethanol production discuss progress Keyes briefly at plant. Let's California

maintenance During avoid components and ethanol and our for shutdowns efficiency helps to that gas required QX helped acceleration would of an carbon significant reduction future and been the of important, year, and completed lower plant, driving upgrades. due is to this upgrade energy cycle equally QX we high us key The which plant plant biofuel natural losses our of extended of have energy of prices. several costs extraordinarily a our quarter install intensity efficiency through electrification an portion avoid us during projects. results Keyes our to But

with several Alan System, also Bradley important Decision DCS entirely artificial Control upgrades. along intelligence process with We accelerated an capabilities, other installation or the new of

in is continuously local decade unsustainable extensive we and employees, to plant our and plant supply and this fuel of quarter this under instead irresponsible. maintenance efficiency so Keyes the doing use chose energy California. continued markets, gas year our for the of and time into projects. than that to components been conduct have year While just pull down developed conditions late Natural maintain record program to shutting a Rather many Aemetis operating and furloughing critical an track priority the second extremely negative to of frankly, forward last would long feed top to of our markets

project energy costs expenses improvements long days operational us our efficiency on faster avoided in increased focus and this save the efficiency. of through completing lost in and path the also in to this production, us through millions down run, dollars on In us projects. energy time save Ultimately, to will decision our improving fundamental a puts

We up ethanol restarted in and the May production and during Keyes plant June ramped July. late

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

to facility petroleum-based or expect and more. ethanol by produced of the forefront XX% transformation goal Our traditional gas Keyes the will at in use projects the will usage natural is the or double-digits. are expected reduce When XXXX, in Keyes significantly completed the to from eliminate by plant. to reduce decarbonized be we Keyes that ethanol at gas is these natural even the reduced This gas put plant intensity renewable facilities Aemetis carbon electricity the California of of fuel natural at manufacturing at

savings the the Aemetis enabled the of of vapor MVR, Mitsubishi to energy mechanical microgrid ethanol heat unit, equipment, The installation installation upgrading solar will cost recompression process revenue sales. fuel of or allow new and DCS carbon the other or and dehydration operation various a increased AI achieve exchangers replacement ZEBREX intensity all-electric and through meaningful lower of system

and business, our headwinds In in second unusual track summary, operational in be external and plan. ethanol Eric? and year performance five our the Aemetis some continue to biogas despite highly ethanol on the business this milestones project of with plant year quarters and facing temporary first for

Thank you, Andy.

growing The tallow and about in review is of biofuels and billion glycerin now year. biodiesel Let's updated is refining gallons businesses national in being India. implemented achieve feedstock XXXX policy to that refining per equal to India X.XX a was X% biodiesel blend our in

June issued companies purchase that tender fall this Aemetis formula under second offers April, selected biodiesel then last of very plants million about contracts quarter quarter of supply tender production. May for oil feedstock specific amounts and used biodiesel biodiesel plus and be a of during of pricing to The locations $XX the XXXX, year. offers second the delivered were government bring into for marketing during the to successfully three During a delivery to XXXX. was received delivery

ongoing the The companies cost the is the plus format by OMCs. pricing expected oil to for marketing formula used to sales be

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

Aemetis uniquely diesel under pricing feedstock importing operates successful allowed and the India, benefit Our biodiesel owns capacity plus India is renewable law. plant mechanism is in biodiesel since And in largest situated in India. not plant India the from or production to

We're for debt pretreatment and aviation export and feedstock has tallow per India our constructed. diesel refined sale are unit million Since that's of facility, sustainable biodiesel the the XX the by fully and plant of the tallow renewable India per no glycerin plant, negotiating to tallow U.S. for the the our subsidiary refining fuel. production XX gallon million in year year gallon

positioned as biodiesel We profitable OMC well are for we meet operations for of operations scale blending. requirements to

ago, of in sustainable California. carbon zero fuel site. year Aemetis acre projects and Riverbank, renewable control Riverbank XXX aviation took Let's discuss A our operational the diesel

of the of Riverbank our sustainable construction as and COX portion diesel our sequestration aviation renewable plant, For fuel well project. well as

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

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

agreement billion a In diesel for Northern stop million with to travel its by recently addition, the major under year aviation that included the XX a deliver $X.X offset sustainable a allowing per by legislation, is contract passed signed fuel we sales the in year a entirely locations. by carbon and airlines IRA chain California renewable is CORSIA gallons sales price higher petroleum Incentives partially about than or expand jet to market fuel XX% airlines. credits for generated XX

later next years We and XXXX, permits to and this year to order XX During make building of begin engineering early steady to gallon forward we the million plant air renewable construction completing for the toward year. Riverbank in plant. jet per look permitting QX other continued permits progress diesel or Riverbank SAF/RD

Phase Currently, to project, Modesto are tons plant plant in XXX,XXX our and customers. inject Carbon COX biogas year up to planned of reuse COX ethanol COX year near and for X under of COX per wells, of two sequestration we generates metric subsidiary local tax plan jet carbon per into Reduction California. sites XXX,XXX tons In capture. to Capture reuses ethanol our which the Aemetis diesel two plants credits the near transferable our emissions Act. biofuels review from the Aemetis metric our drill the of Aemetis Inflation emissions XXQ Let's from This captures

supplied capacity a million of COX. X of tons We to wells that each tons have per expect total additional a with to COX metric construct COX sequester X injection year million other of two planned metric per emission injection minimum year sources by of

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

The initial for wells Class provide includes EPA VI permits. two characterization to phase drilling the construction of empirical data

feature to direct in cash drilling ton permit first our achieved, well characterization well which development the with expect month, key production. we've that this COX plan. key The on the recently five receive We tax per the for but first it's of is well Reduction our track federal of a just a Aemetis Inflation of refund as years metric year for credit each Act of to provides $XX last

million projected sequestered standard related $XXX of credit cost for by the the million The year carbon tons COX million from provided years projects two direct Aemetis year generate ton fixed as and We an over the at of an wells the as low expected carbon pay COX $XXX capture capital per the of amount project direct million an from planned the for well tax injection $XXX believe California. million federal support pay per a metric estimated would funding X year per the per first fuel the under five equipment. funding $XXX $XXX of estimated in could the

during pricing business California early In business to Ethanol EBITDA year. in sales second second response of million the this showed natural quarter while In $X.X a of during the gas quarter, the on $XX.X India quarter. cycle in and maintenance first of the upgrade summary, temporary Biodiesel million exorbitant of in adjusted quarter Aemetis the was and the

of Keyes dairy, and renewable this and us, ethanol behind expand carbon diesel intensity negative we price in plant With projects and carbon the aviation continue India, renewable extraordinary to biodiesel carbon a using intensity natural zero gas restarted diversified natural fuel, electricity sustainable byproducts to renewable Aemetis fuels. All synergistic portfolio a event low from we as and produce our areas hydrogen projects carbon and products we are and COX and as waste within circular create what feedstock refer low intensity and renewable facilities in sequestration. economy bio local these to which use negative gas,

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

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

McAfee. you, Thank Mr.

[Operator be now Instructions]. will question-and-answer connecting session. We a

UBS. Your first Manav question Please question. with coming Gupta from your is pose

line is Your live.

anybody closer Eric, a else. you CARB have visibility with probably than

this, we very milestones unfolds? side when and helps people Help expect they price commitment What are firm new inputs. those of their from mean, the to I we right as take higher CARB can and ways? hear to low is should multiple They kind this of move next know higher And the you. now the price Aemetis Eric which us that -- in carbon we look benefit wants for some listen for we understand. when that process You development. well your fix to too

that? for Andy have, we do What

Good Hey, Manav. question.

as start on comment a indications like new started be fall, rules they will that they've finalize various the of part the lot to feedback sent the they're the where think interim they're and and help LCFS wrapped insights program, any other about period working is hoping to groups this of pretty significant sort undertaking and doing direction kind currently receive and this to I from a They of of calculator, they're out CARB which things industry fall. to But that in Tier going. stakeholders very up rescoping to we're positive them all LCFS. sent have obviously the the a last certainly X

kind of we there's did see see period level time, LCFS think of month ago. of I nice a up the and some price it's a in about run Manav, little that and in that wait So natural

credits that's the record a number are there, helping out there's think which I of not price. that obviously,

think the take that So business. is and we're view marketplace our view our your investment of I or the building how long-term

Probably in in of they when the the quarter by end year. quarter some know the fact. of of LCFS, new implementation the for to first publicly. first the we set the hopefully, begin that going up send it the more increase know of they're and this year, reauthorization the to requirements clear We They've seeing stated a improvement they'll signals that They've program. But next XX%.

So unfortunately we're built zone now A in everybody's happen. for to of middle are that kind where this lot of projects waiting out. right of sort being

has know, temporary default you As pathways. applications are with CARB a of backlog that huge sitting or

of projects lot own meeting and as because obligations a to help the having for industry, a projects through these pipeline, projects we improve positive right very open meeting can want also how actively we're with in good queue of with of Because that CARB in going people there's So are the think looking their sort of that are we participate those I see effect flow to them we start about be to really have a State come that's how and to them and waiting California them once of six them an the their needs to process. help goals. online, through now that CARB mindful in the that to dialog there ourselves program get lot of where applications have can

line terms gas business meeting at of helping LCFS. that of them program the and renewable advance in obligations the really front their is And under the the natural

I So long answer. I some for windy, being gives that insight. hope but apologize you

to the the Perfect. supportive renewable seen supportive like of RVO their natural Renewable and gas. definitely supportive Maybe that. natural also out And as gas. of we again. going of the be have renewable I'm but to of price with going to to Looks very DX keep came not macro respond it is EPA Diesel, very

looks now in on So a being of area, was little and like RNG Maybe not earlier any RINs tricky RNG? they transportation was and want use vehicles. thoughts but you it to as they it EV supportive want EPA supportive to the grow

That's months, right. of you, they of we submitted giving groups, Coalition few and honest a EPA and work I be lot they think the industry, a to that input a RNG it with the the were lot received of with lot listening. Gas And other information Renewable to last from appears feedback, over

there support timeline the So the strong which at the general to hope proven that certainly despite support and renewable fuels fuels. an sector for everybody's show in we can and and can they lofty continue yes, we're but we developments that one aggressive because aspirations goals looking happy in renewable that EVs, with EVs, deliver it for has there's deliver is

Thank guys. the all congrats positive Aemetis. on happening are And you so at much, that developments

Appreciate call. Manav. Thanks, joining you the

is Derrick coming question next Your Please with Whitfield from Stifel. pose your question.

is Your line live.

Thanks and good morning, Eric and team.

Hey, Derrick.

supply on the on less pick on macro, light separately, investments? For my it Manav agreements allocate your your to more for and that to focus RD us and And latest Riverbank. of SAF? but of the where DX RVO announcement, have it there could wanted your flexibility you favorable really will thoughts first with on left and could comment SAF production environment update on to produce operation I actually macro you question, up you In in degree

Absolutely.

and Let's take Any Topsoe percentage can extra we HydroFlex fuel. the the economics XX% drive decisions on SAF Sustainable Currently, The less of contracts we XXX% yield RD of invested, the run about diesel. renewable of allows SAF. second $XX what one is the all to HydroFlex way XX% What use the first. percentage would RD We plant aviation and is with Aviation the process. to Fuel. we've it's up investment produce. But SAF XXX% million done an Haldor our

the DX by by into about and the either. make of So 'XX what as that the the as of are biodiesel DX market let's the would way, much They known RIN to the and discouraged producing much and plan below and is obligation targets that under to coming 'XX renewable produce then being don't kind renewable drive volume frankly, the volume you're as trying EPA. RIN decisions. just as set XXXX, you the of have The diesel go But talk SAF signal our now was play don't happen. magic are produce

the a it's building plant an from signal makes essentially of that EPA renewable So for molecule. which is SAF discouragement diesel the plants kind

Sustainable the there's that target production and to XXXX House's So X Fuel contradiction between renewable and capacity RVO Aviation below the diesel. billion existing for is gallon an a biodiesel produce current White

any of response producers our is in I our is in people they are in believe you, your business. SAF the produce tell less. Now, capacity are discouraged. other market we that discouraged that to which people be the customers discouraged the will not are amount that that Well, But means

The fuel. possible. airline in or And year a XXX fuel. displace hydrogen no worldwide this is driven anytime that rapid jet airplanes industry gallons of billion aviation committed, in powered petroleum soon much There about penalties U.S. to or be incentives displacement of nuclear and consumes will fully battery as airline XXX of as industry Europe billion by the the gallons to per

which but which want the of up end have policy to product these supportive situations is lagging we what with is government needs customers So classic one industry policy.

going frankly here commentary I will and to the in be as So very fully said our permitted financing soon. closure we,

Fuel the goals production. this of pay providing problems, the or solution all, projects many or as it very see gap a their three Aviation at even between delayed Sustainable get to may customer, other due to litigation to willingness we or actual the two year behind that be and bigger years so And airline's built or us for to possibly the further reality not are decarbonization

us gallon are and what up So and whereas don't production our and who in very build has on a are EPA to X miss the billion capacity SAF Renewable Diesel partners to is telling project. customers very goal every need our airlines XXXX or encouraging our any basically the we trying way possible by frankly set supportive participate

reasons So we comfort moving customers of have supplier we can price to technology obviously reasons not with a our these of frankly delayed can't to is Many in the And or volumes feedstock get great are price, why a a confidence. going confidence and plant own physical operate. the physical, very have our if enthusiastically the of just our the but is will the partnership forward we projects plant. you get and level supply you of high then are chain one is Either feedstock lack providers.

debt And unique corn our plus and position to our to distilled production in other already access move XX oil quickly. very puts in tallow domestic California free tallow confident and million India, in and our built plant gallon in already refinery other a be us supply

being in point this very suspect at time, at looked many closely. projects that would While are again I

plant, and DX be, but going has to good a think is our mark something price the always the that's DX going at and DX been news with to Feedstock SAF to competition is question RINs for and look what Aemetis I less customers. largely closely, now provide it's for

and the plant been of expand have our in asked to Phase capacity Phase We X X.

And are. goals have I you could easily we customers existing anywhere contracts what and to not their the we tell right of can our with close now be still triple amount

with meaningful QX. your my you there follow-up, your early any and you agree Could know it completely With great, clear? expecting or late to I and when on offer latest in were first to I ITC are on note backdrop. the hurdles that you timing if remaining of close thoughts SAF QX close That's will macro

consultants, comfortable many that's people, of process. team this in the working conservative Yes, feel bunch et of as dozen reaching we're month and a accounting for least been half on of there's the so. that firms or guidance next current at firms guidance months. and of I a a law other And cetera and is end very that today,

So first the transaction to will States, maybe done it We United large closing. States. one certainly ever the largest the the in plus believe we're United of a be in $XX looking million forward

has So that of lot uncertainty leading required work environment dealing the in of tax of a lawyers and accountants. industry

this that transaction thank a And so. in their very next near IRS to so for close I or place. IRS, very, XXX and would guidance, of bringing the guidance the in was where June at here closing pages. helpful Tremendous we've amount hopefully the it by think in we're work I today gotten month XX and

Thanks for great. time. That's your

Derrick. you, Thank

Your next with pose question. from Truist. Please question is coming Levy Jordan your

live. Your line is

in on the Maybe tallow Hey all details. appreciate all the and India. just business

more expect how get that we if progress. to little detail could curious Just you on a

California space I and ports in think in you're you of sort for discussed negotiations some that that thing.

So revenues anything of timing out realizing of there that? or on

for constraint. testing requires pathway at that the in in all do really Tallow positioned for intensity production get the California the heated tankage That's our process. constraint required tank and not India. well tallow very a XX is plant been are things six carbon actual about ports. days to to has We The other the been a the the and process then of in month

about and renewable very pretty customers, place. steadily who are for California have Nevada, we producer the we So ability in are our neighboring candidates to in process actually there. get feel solid tankage terms And every then diesel state, much in I or of in contract We're excellent moving forward the this.

particular take to And of refinery we that capacity. have is so one all looking our

not in shipment the quarter. fourth revenues in we hope be looking by have projected the but place yet, date end do that we So quarter to a and have this of at

sell the India little of you've our Shipments, scale through have fourth customer quarter it then to course, be this flow storage that we revenue. the if and of we'll But up course, one quickly. all got before targeting into looking it's would whether capacity pretty revenue We tank are to from of take post much to starts. rather see a with and customer our we time really

is the much in up once position on. scale be get speed in think place, what the really so we're a start tankage And we'll focusing I shipments. we the And better to

the over to Thanks side. that. shifting for RNG Maybe

digesters seven online. have you that now curious Just

on add Either level? has of been part XX the to five on plan? reception, confidence business target area? or And that that I looking How you're a in that the the dairy what's I year You've from think the ones the in dairy built the lot of that business. and owners are already the scale business guess to your

of dairy. Andy spent a with time lot

an why us update give on don't Andy, that? So you

now and asking seen going first this to last I LCFS To process frankly, we've them the three they've and a what years XXXX price the lot when questions in back over was started dairies where think in I first are of become summer us about? and sort I we talking the more you Derrick, talking a like, in real kind sophisticated. about started, of of evolution

So is targeting dairies we would think this we say that I most forward they that of the to are the something know are with. certainly move need dairies I targeting, that all of that

as is just fact that obstacle Margins doing dairy in the business whole think low. not biggest now of in this well. the business the is everybody price right is I a milk for the

And so our and at these valleys. approach capitalized has that look dairies always dairies, sustain been peaks well to can

ethanol altogether not a business, the from these have you too different and It's margin when from valleys peaks perspective. honestly,

are folks it to their to happy the very So it now I not has dealing with that nothing is do we're think because has price with right the that is everything fact milk with nobody great. RNG, do

into perspective, the encouraging RNG day I've bring for heard last so on signs business the RNG from about work that's dairy we it's going, every thinking about. a I RNG some equation come single a point central and about us where while they're that thinking thing producer into beating is because and

this our forward. will bit. another we're at perspective the bottom-line keep their energized built from focused their and get so little to improving projects trying projects facilities will margins We're challenge to of and moving for a more is And just it people there their and these for stream hey, we keep be paying them. that revenue a people realize just these hopefully trying all to the And revenue help faster

and there's as going producers. on So what's requirements requirements the great about and of program the their education

cycle lot they're with from and most dealing they're of the a perspective these excited. we informed educated the of of in I so walk door, think dairymen we're the -- and really a have themselves, shorter sales

fact have we capital us for think a significant that I paid it and the that off pipeline, XX has investment time mile biogas the again. was time

in saw we They we the be it, and home real built. ground. it's a they that know about there They talk go being will this that's see can for in When gas. it, something it

kind fact So it which it's plant, last XX connected seen real. they of the years, a And the have to it circle. completes nice makes it that very operating for the ethanol

So of just I It's the is not no would because dairy the the milk. in of now overall enthusiasm say projects. lack happy for just of RNG super world right environment price

That's really it. perspective. Appreciate helpful

Your with Tudor, from Holt. question Pickering, Matthew question. Blair Please is coming next pose your

is live. Your line

Thanks for my morning. Hey, taking here. questions good

that around ton lower? half back are drove talk last number of First in Looks what what going profitability? is the is number was was it which about expectations India you one is your about a profitability the per XXX, on segment. for biodiesel like EBITDA that future Could good or year. half And what of forward

had in margins the reflected feedstock higher global quarter The prices. sort second of We increase. a

same the yields, cost the that margin or think for we we and using over we are in high cost allows example, lower decade last renewable some proprietary use have today. diesel, developed additional biodiesel would have margins the produce. expand generate when If the technology you about a same use track generate feedstock, where you lower margins prices, us soy a feedstocks and sustainable they seen actually. We are half more XX% to And about which India, we quality for currently opportunity that. to But we

increasingly going from lower stock are be have to a to our we of So revenues our third cost using proprietary up this technology.

investment over We've and roughly have in the four last expanded that that months capacity. capital activity the quadrupled

then an we third lower expect to into that structure. cost and quarter of a to third so have quarter we the next to impact And revenues expect fourth year. into that up in have go I our increasingly and as do

EBITDA drove in costs million And on the segment, due for look Ethanol had will into or positive loss then as to be the could EBITDA like you quarter? restart QX, you understand do to that maybe this And work good. $X help inventory? think cost you California us QX, through was the what higher you Sounds

we On the charges operated of of customers, for combination really one-third around the the just yields QX, it restart. and only one-time with had EBITDA. led cetera, to et some really quarter, We contracts and was

the related start. single to up some but are to there add amount smaller fact, -- from thing, In things you large any not just it was a

And see related these if is startup so we costs. one-time

QX, say, QX be into roughly we'll two. and be full increasingly the or to appears about current gallons, a much advantage part were am one personally to there's blend, of of of We're strange billion gallons. that effect, I production EXX weather the ethanol, has looking XX% still let's trend, and some going corn at maximum that market good We're national take to year of into price get full the EXX does. low the a month how and environment. see around QX, terms margins to ethanol In is corn our from unless our have shown billion margin be which Really XX next discussion better. consumption over for we're to XX in. over looking we questions taking condition is But

capacity Well, gallons, X which production is the a United billion of XX entire entire little less only than we the in States billion export gallons.

petroleum allowed accepted So California. by gasoline a EXX, of in California a XX in XX% currently way, states blend XX% ethanol not it's the mandate. is

own closely are the friends we set can with that multi-year state at in We're our California. XX% so working get to CARB And complete only process to approved blend a our and XXX in consumes the a California be would year of new in over way, alone by over state ethanol a X.X demand already rules gallons that that gallons. million billion blending

we all $X.XX it blend, to for street, around is at looking sell allowed XX the as I underlying So that little $X.XX but a being at some XX% point It's a buy we for gallon we're the really then our we paying driver. $X or we're ethanol $X.XX roughly gallon, turn demand back. and across it. would external Last of a EXX but realities being more states pay make

the the business that's there over demand so and gradually solving doing two. supply year or what EXX by in significant margin the next Ethanol is And curve, simply are opportunities

for Thanks comments. your good. Sounds

you, Matthew. Thank Sure.

H.C. Your next question is Amit your Dayal question. Please coming from with pose Wainwright.

live. is line Your

guys. Hi, you. Thank

plants, we are capacity third mean, I Eric, to with So the quarter now? at Keyes full for the running respect

by be was another Really a end September. June, July sure. July to months. of up, August mentioned, ramp up as for and ramp quarter going We're I the the were third

expect to and capacity. August September, be full So we at

Understood.

spill eight brought they And be then that. Okay, and will into for year, year, XXXX? the thank or digesters online this you targeted will completed that for this

We under those have, of what construction? half

the or five think of next we'll have you in probably of Yes, a We say but of or of have two all end kind of to completed by of that are of under I'd there's one currently for QX year, those. may year Four completed the construction. safe online. is those by timeline of about end five those the eight those

Thank you.

of few are sequential, of kind sort of they're should weird will we a winter some think. on It to those and a again, have? what with we slow those. did But I might we're have And be it year, last few this pretty things we going gets online year if we large, but have far and a down, along winter by like of

the more this two by that So year. completed should be of we'll have definitely three to end

as expected? size running operating are they capacity, the cetera? they that guys, running at et Are And are full

has we've on upgrading project. and the very, operational bit happy the the and uptime little our summer because than been this a and equipment running, is pipeline normal, dependent nuts slightly ambient facility It's performance. The But very uptime are these production everything winter actually temperature We've this with has been weather as honestly. or the been of been with weather. digesters, been of we've And efficiency. and so California how very in and really with our are impact. associated cooler that is the and exceeded very operational an happy far happy we've production with expectations, bolts this -- Yes, of these as that's things the the performance RNG

you. with the… respect to Thank then And

think lost Amit. I Kelly, we

Yes.

hear you me? can Hello,

Yes, again. can now. we hear it you Try

one-time was Yes, required. takes Is the the for go required to trying will be feedstock the cetera, permitting I a that and just place? that India, et back thing tallow is to it from each qualification, shipment so this or

case, It's new India. from question. is produced the this carbon a thing. the of intensity It's a from actually fuel In one-time used when region. tallow Good

The show carbon biomass then run actually score intensity a we as in default XXX% some get than in the you you the better score can electricity underlying coal and if a there's a much So pathways, energy India. our so has but default. for source, we plant lower default get example,

sort specific. it more process, kind our is to want of X, biogas pathway. Tier It's pathway. X because XXX it's We along pathway. but of which So like six projects Tier It's has negative a you word X our Tier months We're more pathway, takes which same to XXX a default X project get standardized it's means running provisional of Does not to Tier the dynamic? a quicker, a negative still done. a is a that at move is business. India

Understood.

side. last Just again, one, on the India

that similar saw modeling in and in For of India we assume purposes, we shipment production should QX? levels

For QX?

Yes, for QX.

multiple doing They've it expanding number would we're of shipping take I been cycles. a to. bit. procurement down the We're locations little

And in the so it's contracted for additional as And there. time, but the and point not orders. we'll this we're we've two-thirds course entire way the looking over quarter of of August September, be

they what we'll quarter probably in September done. for next which the sometime we haven't as and continue be order all that the meant But did they done keep month is we July so what quite press we at could wanted, production gotten get on going timeframe. was their the August So tenders moved quickly, and that releasing full they for

good release quarter. the out have put on probably we'll we visibility So press once

have. Okay. Thank I Appreciate all you, guys. it. That's

Thank you.

with Todd Please Piper from Ryan question Your Sandler. your coming next is question. pose

live. is line Your

side on the and one mean the I of me. continued Congratulations just business. the Maybe Thanks. digesters for on RNG progress

to gas building monetizing your do monetization? gas and to on gas What start pathway latest still storage potential on you maybe of or thoughts and timing approval? this progress walk see point. you timing You're Can at through maybe need LCFS

Sure.

for digesters. We default of pathway four approved our have our

We weeks. have to next two expect more here we few in the get

six quarter generate XXX next a So There's digesters that that. ship requirement the not in the it's quarter at revenue produced, after have timeframe. not in can quarter, of that we in the negative our we'll the to have but

exactly what have to XX do we We let LCFS possibly in might sit maximize in very order be product for credits. to the revenue. it want to can't order which We in actually ship LCFS months, just to the get our ground

be as to minimum will we the meet quarter showing are some what Negative diligently team provisional with these is revenues in XXX the be we and quarter ground the that's be in we we'll that estimate completed. we thresholds. then working everything So ship pathway. able But to our get CARB And to afterwards.

working But we I we'll be quickly to do can QX, leave approval a and model minimum look in in of are XXX to to be revenue as we tell have it's ground the QX, that definitely negative place a diligently that business showing meeting until you requirements. would as in result back quarters. we're So possible. in the as our And just the as get it earlier

Great. Thanks, Eric.

you. Thank Sure.

Your question. Stonegate Capital. is with next pose coming Please your question from Dave Storms

Your line is live.

afternoon. Good

side. dairy quick Just on digester ones two for the me

the million we in new With close this can year, say translates being just funded? that and XX to about to simple additional $XX funding expected do math digesters

on that. have will dairies of size That's an impact approximately the correct. The

So It'll somewhere per six in XX, be be it's a funding would the range. to XX. which

probably then So I and it true XX up. plug would in

press how project. As come you each releases see announce are because in we'll out, dairies many

have that critical mass just And to Perfect. of you'll there extend you'll a Is on that where following that. hit dairy to digesters pipeline?

mile every away, revolution. pipeline and for And main news having the think extending run line is them. in a if We're quick essentially a good the pipeline that's trunk to we'll as very The dairy just out dairy half a is it's place. about

material a budget. not of part the it's So

I thing add is only that. the Well, would

-- these chunk of back to look XX we can you we're But about right you're to the all everything's out to But ends but Eric not completed, many it's to XX. sort call when to money going XX big going -- it's expect out, as you on at and what now miles dairies. be see So is not of of a one-time. so up pipeline, closer it another with not we at as it's as pipeline, would all terms build dairies, building track one-time, in of of out be legs worth miles turning the dairies

Yes.

helpful. very you. That's Thank Understood.

you, Dave. Thank

Thanks.

questions for closing There the at like additional would back their time. in now remarks. are to floor this queue I over turn management to no

Todd? talking company opportunities And forward Aemetis Thank you, on review Please about the analysts Aemetis us in to to that is Kelly. joining the shareholders, for look presentation thank the participating homepage growth at and website. Aemetis today. you you others of the with Aemetis. posted We

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

conclude today's does conference call. This

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