Aemetis (AMTX) 9 May 242024 Q1 Earnings call transcript

Welcome to the Aemetis First Quarter 2024 Earnings Review Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Mr. Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis, Inc. Mr. Waltz, you may begin.

Kelly. you, Thank Aemetis the XXXX Review Earnings Welcome First Call. Conference to Quarter

at is the conference We Founder, website Investor today's Presentations, for and Corporate us earnings the Commission, the Eric press suggest to release, earnings call our filing Aemetis. Joining previous and of recent today McAfee, press calls. Aemetis and review CEO Chairman visiting Securities with aemetis.com Exchange and releases

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

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

For Securities which and our additional company SEC the website. Exchange the system own EDGAR company's to posted on filings, are Commission please refer information, and

which measures XXXX, in earnings XX, release our use Our of discussion X available cash. directly of to measures ended because A or reconciliation source review results include on website. will supplement of March the as GAAP non-GAAP included a most we for call comparable based on for these measures our company a non-GAAP financial measure believe on as to GAAP the serve months our non-GAAP the proxy this a is

expense, the amortization net extent net intangible income as such loss expense, income deducted interest expense, expense, depreciation share-based accretion tax calculating in other and compensation expense, is to plus and income, EBITDA defined expense. Adjusted or

XXXX. the XXXX. $X.X compared Revenues first review financial quarter of for XXXX were first million million of results for first to $XX.X of during the the quarter Let's the quarter

an completing XXXX from our renewable million during dairy first the digesters million dairy operating operation reported In LCFS its extended quarter second natural and the quarter first year. produced Our gas of credits of year, after returned in segment full to this plant natural last X XX.X maintenance renewable gas Keyes $X.X of cycle revenue. of sold of BTUs QX

XXXX Our million Indian Biodiesel $XX.X similar business the expenses expenses decreased administrative Selling, to first the the India cost reduction first $X.X revenue, of from XXXX. selling, to administrative a generated the driven quarter X quarter Gross general extended from quarter maintenance the of to period and to due million in sold, during loss Marketing gross the compared $X.X primarily XXXX loss $XXX,XXX of primarily million by of companies. was $XX.X of first and XXXX, sales Oil million during general for XXXX. first to the quarter during fixed goods charge of during in

$XX.X at million Operating dairy projects loss an Aemetis end ethanol quarter of the compared $XX.X fourth XXXX quarter of the million XXXX. of of million XXXX. recorded Net first construction in for for was for was the quarter digesters $X.X $X.X XXXX. of million first a first million the of was reduction to $X.X million in the investment XXXX at of to of intensity XXXX of quarter of carbon net first $X.X loss the to the compared close operating capital for period for XXXX. We to of the of and million related compared quarter of loss same $XX.X first Cash quarter the loss of the

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

to digesters over for or loans to biogas construction completed million and USDA-guaranteed construction. in business we term the closed Todd. the loans so, In build $XX Aemetis digesters you, dairy last year Thank to loans that XX-year have convert Biogas

We dairy have XX digesters operating with supplied and have waste dairies. XX from agreements signed with now X dairies

provide accelerate private and close XX-year closing for natural financing in debt we additional digester $XX of REIT related accelerate to XXXX biogas each close the generated an XXXX. to project We expect We new plan provide $XX the with first to million rate as development to of additional expect that credits sale of to revenue in of and time construction, quarter of renewable construction from we USDA-guaranteed the loans first expected gas funding. million LCFS as to the

beginning tax XXXX. for renewable Board the Air to allowing fuel. has natural production gas feedstock that an that hydrogen including carbon-negative to approves applications, our California the January increase significantly is filed gas stated emission using we CARB Resources renewable renewable credits Reduction XXZ existing Act, dairy future as last revenue And a production expected as zero engines, trucks natural is Inflation in early important natural Renewable for our digesters The we truck be the digesters pathway of gas provisional as build year. new generates

We of Resources as decarbonization believe expected renewable zero trucks to the lowest the renewable for the XX-year the future intensity and transition will and the of feedstocks intensity, The emission rapid hydrogen excellently fuels renewable low supply heavy-duty for positioned benefit that to power gas, negative year a the in hydrogen, Board vehicles. this cars renewable Air is as adoption carbon electricity and transportation electricity to light-duty and zero Aemetis by enabling production. carbon natural renewable intensity California, directly and well carbon California mandate

a of we the project LCFS year. to updated beneficiary again, planned, this is, mandates started Aemetis we As in biogas the be XXXX, positioned excellently significant

production our renewable positioned the credits fuel well January aviation first to the per and Aemetis planned authority construct during for benefit sustainable built California. XX plant to quarter, million-gallon Riverbank, the fuel tax air year in Inflation we starts diesel to permits diesel aviation in renewable be XXXX. In sustainable XXZ from business, of development the our Act Reduction that and also are We received

the Quality million California project. gallons about approval to XX which plant capacity discretionary use of forward sustainable Environmental milestone per When as produce the aviation SAF. significant operated, already the permits and move are with year construct needed permit XXXX, ability only key to the Act we to had is we permits other The received fuel, design of in the the were a

billion to $X.X supply worth resulting supply carbon fuel SAF emissions signed a sustainable fuel increase XX company. The with continues to aviation replace have contracts global renewable overall to a billion-gallon that stop the to need significant are shortages travel continues with diesel We for market contract as of but per the of industry renewable aviation seeks supply airlines jet billion for a and to using petroleum reduce in year continue supply national $X.X XX delayed, expected future the foreseeable fuel. in be fuel

strong the construction, accelerate for customers limited and demand With use of the supply, SAF are structures, discussing we operation the to now of innovative financing, the SAF and our airline with pricing plant.

financing underway working plant with on the with investors. SAF now We're for and negotiations project the currently due diligence

receiving of level from interest multiple whom and some are high the in industry. the interest of investors, strategic financial success aviation have We of a significant commercial

to SAF to cannot lower carbon an United CEQA companies States, very construct Aemetis on be supplier meet the that to track intensity permits its a large-scale airline operations. fuel a few to of renewable facility the leading of production of market needed transitioning currently with in one is As goal

achieved $XXX one-year X in production XXXX, we for to oil performance. sales funds capacity contract Oil excellent marketing delivery late cost in announced is India million that and structure. pricing The business have now received under Biofuels we business impact and India allocation the expected under to by XXXX companies Marketing a purchase and biodiesel biodiesel We October and The is India started contract positive In own companies deliveries for to operation a cost-plus the foreseeable that continue used its EBITDA of growth. positive the the plus has being future. this

business, be year, as ethanol a XX of ethanol will EPA's the approval consumers. effective approval summer expected adopted next recent a for For is on seek that of retailers to states the lower-cost permanent impact the provide in a EXX to price ethanol the of positive blend XX% to and this statement fuel have Aemetis

battery of revenue construction the have reduce plant, carbon energy by and Keyes low our completed energy storage solar reduce We intensity produced per more an facility gallon. fuel standard with ethanol to generates costs of the which carbon our on-site

next plant is The Keyes recompression system. in major installation the the step improving flow and a our at efficiency energy of vapor mechanical cash

and Electric tax gas and moving $XX increased Keyes usage Pacific MVR year We energy by million the now budgeted to equipment. have million, the of natural $XX and completed and designed $XX Department process design and forward California detailed per efficiency Gas Commission, Revenue cost engineering of been awarded is Service. XX% of to the with and procurement by reduce the plant. The to about Energy Internal million at system and up flow cash is project credits are the from MVR grants Energy company, has The

carbon the the Aemetis is well capture permit engineering financing Class Our the subsidiary for characterization financing. EPA of the USDA process using and XX-year in VI

create project state key the bioeconomy. synergistics working refer process. In investment under market as the sold carbon contracts characterization approval Aemetis. now the well the as development fuel India, The circular cost-plus we growing market, drill USDA all aviation to undersupplied and a the biodiesel California are through as sustainable gas, natural demand segments emerging We at And of our have for business renewable what X in to and are are summary, received well. loan we Aemetis sequestration areas

utilize and on projects efficiency, reduce revenues, increase capacity, operations significantly flows. improve lower-cost are carbon cash Our in California improved intensity, feedstocks, and existing energy focused expand India that

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

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

[Operator with you first McAfee. Instructions] Manav question from Mr. is coming UBS. Thank Gupta Your

go at down. So front, is, to more saying, step we looks like might down looking and guys and step that X% those on need CARB is do or my balances looks with first it a X% they question maybe like

guys say, is at than step and scenario very just for took a X% that here? more You look X% we to need a or and the what probability often, go do they X% talked to those this

at they we talk researchers think CARB, but you to those than also this increasing had much activity. And supports are year higher We CARB's I rate as data that to the provide that expected. talk numbers a know, the

going which was So several take believe it they have that to they X% the they going in putting looked before they're with automatic acceleration put and in closely had higher a place, at go years at they're earlier. do looking that place than I proposed to mechanism, that

has which and market fall the will needed that dramatic. a the was respond automatic acceleration just price couple than view, when in months LCFS and in So earlier credits, adopted. a ago is adoption of of step-down in $XX. positively and been my The both X% larger that's It $XX roughly mechanism hit

of that's percent of their measure extreme an a loss XX-plus Now the in them during middle tightening. proposing market.

of what it's the they So thought exactly would opposite happen.

So going I think enough Street and to in to think process. that They has Wall And the complain they talk them the Street process, I more hear see Wall that more everyone Street speak into like to that more. opportunity this from an the Wall do speaks we're to tightening. doesn't would

is your So CARB. get the I'll in with executives with ] to and appropriate, involvement be comment and more at more and [ direct stock correct very connection analysts looking

through. here. Perfect. looks talked dairies you're on, My it is looking -- like coming you about quick accelerating, funding your follow-up is X

you dairies -- get lag your from do understand should online And you're many volumes think for I here online. how XXXX? sold But a in if just the have there's by think and between how dairies modeling perspective, the So year. you models purposes, do would our year-end by many we

XX skids We're time we're long material XXXX XXXX. And go largest in sort enable of and it's impact dairies into still its Yes. the rapidly as will tracking of that end accelerate acceleration the that of will purchase have in we doing to us lead XXXX.

and prime operating as say So the over like it we direct income on XXXX flows pump impact we as cash a here. have will to

Whitfield Derrick with next question Your Stifel. from coming is

with for you EB-X you of securing it's from from Immigration just U.S. the the speak I funding Citizenship for made if advance the cost Maybe in a to wanted financing, to to quite could investors Eric, impactful because approval progress Services. certainly guys capital perspective? you recently and received start you've which

Yes.

rates successfully at course, what Derrick of is foreign about, funding senior this case, being is with at under Just raised per that $XXX,XXX to have approximately so acts other this and this The USDA for secured interest funding long investor. And allows we familiar was financing. debt $XX approval program. already per debt bring it everybody us year investors subordinated with in X% talking as in million maturities below equity subordinated,

in from million we And for -- investors. about this it's roughly XX sorry, we, XX this the about program $XX.X been think approved actually, program XXX And under investors. I have investors. another past I'm under

through prior goes it around marketing. more spent slow is is groups literally X and big X funding of on China, our China for raised process they sold cycle broker. raised, very both raised in foreign signing investors XX% time a experience I very extremely then then and through lot as well brokers a slow fast. weekends of of brokers. The closed I've So reason actual presentations We weekends. direct as home, in very in that to due company. is the This countries, back, a and milestone the up and [indiscernible] of doing to of the flew our And all goes investors in through X And our fast. flew go some through is out flew in it diligence it money, money, why we presentations India

we and be now have we'll brokers So this quarter. fundamental the initial Escrow work account potentially into with to funding that doing are looking

we so while. it when It's way. that happens, have seeing financing by and And a as and it's equity, idea we'll into takes progress, is we're to low-cost little on energy the the nondilutive. focus nonconvertible But to very past, continue the very long-term, equity access this in it

a values to what you're from seeing dairy wanted XXZ that, hearing RNG over U.S. I That's with your policy. RNG on wanted like how Treasury CI have CI where the you as low could you're in what And could it to on again, ultra-low for I to get multiplier your beyond even then, XXZ that hydrogen very opinion Eric, treat on will create, your for sources your maybe factor? nice well? ask dairy emission great. shifting And applications

recently it, whatever if entire in [ like number carbon agreed just that week amended, came X the The then what XX that Yes. there last there ], out released, does on meetings DOE is. here. pushback model Chief any inside to -- it's is, guidance topic let's gives of people to us call and not set IRS any Office of agencies. calculation that that's And House. is number negative the California, the sits Economist be the And the White USDA spent spoken by the in We've we've an seem that the the these with day the and in

of is so an CI. And there encouragement ultra-low

we that XXX, negative this Now big XXX. know in all hundreds, biogas with the winner is

so be winner. carbon And also will hydrogen renewable big another negative

diesel diesel the go renewable replacement diesel or make hydrogen biogas make So of can goes replace can vehicles. engines, engines into into into that or electric consumption directly

the Reduction et the cetera. really So the is XXZ, biggest be mechanism all to probably those three of Inflation are the in winner pathways that Act, using -- biogas

Levy Jordan from Truist coming is with question next Your Securities.

Maybe Maybe biogas ramp over final quarters I comments of the where the the just the build-out. on do of should how X, the next think conditional appreciate so, near about approval digester from appreciate X LCFS moving stand all And I trajectory the or from term, in pathway you kind process to there? in that for kind credits? we the details.

actually with initial our process happens. round we look they they nothing it, happens as at at soon time months, once basically process Let's caused all in very review period of even XXXX it's a sit filed of it's then application is has few quickly. approved. there XX-day you and it and of has short other review sort started our dairies. take May -- looking a very quick for your a it The it they at very of in as backwards. The of that bottleneck a as stuff, But then haven't some project. But projects today, that and And

the credits. And that the we do quarter will that of the because approvals beginning quarter So process the quarter we that, third in to the when expecting occur. the do way that of LCFS of are get their is during approval, they

July from credits as could So fuel as early basically carbon than low we be as have standard very getting twice revenue today. much easily X, what we

aware the not But July on subject of the X. prevent staff, and are other all from of that we being behind. activities hand, it's So anything would been have it to they

we biogas we're So on either this in the it's going and time, double summer, is We'll double generate those more we credits, sometime the up is are dairies brought And winter LCFS colder would two to be dairies. ramping factors. effective passive bring Number to these production the But revenue. July far their winter. generates one, X continue We of fall rapidly it's or during literally credits. The because adding of revenue X less spring. that essentially more then our they and solar so therefore, secondly the In dairies. weather. digesters on what

California. So ramping it summer you in spring the and continues fall time, in into have here a in the the

So a plus ramping the we double have rank seasonal. provisional

more we'll have winter, Next dairies online.

So rate of but revenue, much of will growth just winter. it's like not a see in decline slow the next we

So X that's or July will performance staff. an get which of date, is X we date based have a upon an we and October the effective uncertainty, effective

dozen those a which pushing hard the X course, digesters would for by date for July effective of approximately initial are, We way. digesters, half be

apples-to-apples for how Vertex renewable conventional. it. about on announced Appreciate and necessarily I expect thinking you them think online move about headwinds of the kind where to feedstock to sit high-level at that renewable And also today margin because maybe space. morning, back that. that just production path were to when margins the us and fuel, help in an there. you're opportunities. But from know diesel a diesel have they then current of you some switching Got you on dynamics to interesting this some go you're well? margin some there's that comes from Riverbank the also And we kind to where help SAF maybe focused as Riverbank and benefits plant have This aviation is you just And know perspective

$XX renewable of Absolutely. able when flexible historically diesel The to Renewable that roughly the the businesses. SAF. In be for flexibility production will million, they not diesel SAF you to we make produce where building and were facilities SAF to And plant designed diverge you Inflation to be to renewable and years, plants RD million $XX over important started new to capital diesel allow in renewable frankly, technology moving with us out last new the our the have In Act in, Reduction for plants, sort case, were an be have designs current the as spend, our of that because provider. That in X is that technology produce a selecting or literally low-carbon the diesel the X size. in provider going of think it's Topsoe be for to standard. SAF. produce been of frankly, allow and can We fuel dial to investment. the XXX%, winner technology America HydroFlex North decided Europe plants could has Does in which expenditure XXX%. from of XX% uncertainties additional to up in

emissions, a for significant we which So renewable does diesel. Scope have exist for revenue source also fuel aviation that are not X

emissions. to an Scope opportunity X not Vertex So have did get

about a million know $XXX with to guys think gallons that transaction of SABA related recent you million some XX SAF. others was I and there for Microsoft

have others So do a not renewable gallon players to. diesel Vertex $X are that that's and roughly revenue access that

SAF to might that that to is the condition are We off never as million the diesel a having produce investment to uncertain well, So $XX flexibility are we our position. that where adopted, there's belief run important. need is plant. But year we renewable pay just always this incentives a going in being an in may us. for be That's

the public but I'm brought that as Cowart guy Vertex. XXXX, the acquired if don't company. We the them company the former I'm -- and built public from Ben with the know in familiar CEO are in and it, very Vertex acquired and you know took Vertex my I

Did billion million $XXX about about of last year, of $X.X cash revenue flow. positive

close a We with company. that XX made last team them very acquired management are and over the the public them the having guys years, been

a they very which of lot are situation So will in in money. petroleum unit make their a special

they've And it's future who a so be has potentially there and SAF. unusual management to excellent might flexibility team I as produce dedicated the their their to little we in move able be think diesel RD renewable even someone maximize opportunity. by noted, their situation retained absolutely a upgrade understand plant. And to an And more the than they

by and SAF. an keep SAF happens future what would I a XXZ the them trends carbon when list a of really matter low producers, but great of on are standard downward incentive fuel a So few of they in for the doesn't example months, XX% have

You SAF have order able extend to be XXB to production. to incentivize in

And same why with those two see the will has moved back Vertex that uncertainties, were probably be I considering can there and producers kind other of into petroleum move.

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

segment, Biodiesel you're quarter? And move to EBITDA quarter, India the first reasonable up should the the For in second it for feedstock? to is then step a as that assume you the to cheaper able could share Eric,

one? Do to that catch you want

Yes.

have have gross question I So I ready-hand yes, because do that let me profit. a don't EBITDA, take

the it for profit, million $XX.X gross $X.X India of Biodiesel, was So revenue. on our million the

different time so your which the temperature to That February, second they the December, a feedstock. have able India, because In requires has conditions yes, feedstock requires in they colder gelling. a of not have November, different different the question, a half biodiesel and to January, winter be in start

And than time. significantly the so was better performance winter our March

of plant the a the by summer have well we end as the we're to able we feedstocks to can in And both very during because $XXX September. million shape good as as lower-cost contract fast really as under run here, supply

that when gas side, -- are Sounds much such the of into RNG market, getting or to share, on you demand to RNG it's that like good. that think today? there LNG being stored. the gas, correct? existing has on XX% today, XX% about And that high California the I market any do transportation a given CNG it up of California dairy And the then so and is just Is plan concerns

Excellent questions.

them store take had how have rules to X-month the we Xx, limit on standard you Stored increase, a allow The do gas fuel delayed the parts. actually all two gas. long would and it be us under Let's preferred don't revenue in this but CARB has low a can have essentially to that. XXX%

we the basis on have all So to X-quarter a trailing X-month a basis. gas or sell

So we the don't in have us do to If let sell medium quite on as they we otherwise gas. we as other have term. have big we of it, inventory hand, would would an the have to have. desired invested the But

to ] comes gas So general, gas [ XX natural revenues looking [ than XXX landfill from at renewable intensity, because Because comes XXX difference probably required the compelling I which negative would say, intensity. a say, natural carbon sell more in gas. to we're I it to carbon dairy the is carbon ] gas gas, of landfill from renewable and is California is do the would always much for gas, you're is natural negative intensity, in economics rules dairy in that which, that having renewable it. The positive

now gas So natural very renewable penetration is with displacing high about RNG the gas. of dairy landfill

phase the we're going what's really be to right now. that's in So

there's natural to and has a there's in used which have enough, natural ever dairy gas, situation renewable not renewable the that we're been interestingly any all left even just I for enough gas don't going dairy over. And California, anticipate

extra We or carbon here. have low shortage a intensity that ultra-low substantial fuel of --

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

-- that to With respect capacity work year? in Or India, that underway? later that is begin this already the to efforts going expansion is already is

is different two have We XX million. One to million from nameplate going XXX gallons expansion. capacity of kinds

under this We design, doing equipment be have starting year. and fabrication later we'll then installation

second very that is one expansion use happening is this proprietary feedstocks. our low-cost actually quarter. technology to The And

percentage capacity is will of very use and competitive have. our advantage So low-cost we a this feedstocks, a higher

doing types expansion India. actually we're in of two So

midst as have nature the quite operations like But has or stop-and-go. the the of respect business we years last in working capital that But the of business. your the changed think business year you and with India needs, you we're how ramping X know RNG revenues, then In -- working in about operations, been And needs Riverbank, Understood. Because XX developing balance right, capital the was context, as months. should the EB-X address that. your Okay. are funding thinking ago, to changing, to still bit a revenues cetera? and closer comments around X sort are probably I about and et building sheet up working related how expanding the capital? getting of

question That's a our very good talk because capital of usually being the efforts. we focus about the budget financing

corn our business supplier. requirements operations customer. large desperately and have is very a have billion for by ethanol all capital We $X financed model company do in And a put as working to revenues not our existing our on a I any They're general, desired into Aemetis. of that won't go plant they us deep detail. But

And so we said, terrific.

and pay Just that revenue. days you we the X corn, be give which receive exactly date in after extra to an us grind our the we will

of And us. our a are utilize a in million capital literally operating more we budget credit working is have because happen during $X vendor amount any working the small to in don't than able India costs. we've had part in energy since for capital million-plus funding ethanol plant. In et a that $XXX the working the is the long-term fortunate So to then a vendors India, usually be we're between time in and there's and that, relatively we idea and our a of as be for into that supply. And business XXXX they we've been America every this Program will there funding, run biogas, facilities working to cetera, our relationship use we renewable just have feedstock capital working deployed built capital phase, own to construction, in XXXX capital capital very our with instead supplier who relationship, investment long of

we're where the and into built now, which flow operations. we've process is at positive then cash construction So operations, we're from getting after

don't we needs the working businesses, be capital directly. And any project emerging X then plant our SAF on So will there have financing.

is initial the part USDA it It carbon working to that of So additional not capital after require will funding. financing a sequestration be financing. funding of happens And starts. then

of right the is So USDA we're part of financing. the in process the now capital financing working XX-year actually

-- provided it's vendors of the operate capital our is financing as is structured project So plant. we part or as working by

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

and horizon MVR for pace Riverbank. Keyes couple And projects with the the should downtime a plant got expect project? year? then through on You the plant about Keyes CapEx the should think between of associated any upgrades, big How that we we additionally,

question. Keyes of because $XX cash, already is have capital a sell CapEx short-term tax Good we or cash. The grants can we credits worth working essentially utilization for million

the the and putting the chunk $XX remaining up Pacific million money $XX just Energy then of the back and otherwise. invested equity, million California of already a is and big we've the amount So or or Electric from is it getting essentially Gas Commission

this of to loaded QX of for installations year. and QX and other backward that be the So activities The is are timing going really year. CapEx next

years, otherwise in of this spend the back generating year downtime, and it's fully but downtime. will cutting cycle, preparing have lifting, be of then again, as until revenue would bringing -- last equipment. And end in we some the So required not that terms we're during operating mostly of heavy the it's did the maintenance

to a of last year be and so. anticipating a for down minimal the are have downtime it be did couple we downtime longer work the is of will us caused could weeks month that we or So relatively this

That's helpful. just And very more. then one

the any completed? your structures Would be all you're to once remarks what options the prepared at? look willing of that innovative fuels. might work share like your looking pricing it's that in for SAF Or mentioned You you on

way look India, Eric is The for Google you without best think, we're in SAF, the the up. need just in or Probably it everybody's accelerate would I success will to and what pop Digest and SAF Biofuels pricing. McAfee we airlines format order to at think a having to Digest to refer time article be week, something, do Biofuels could taking to Biofuels Monday but of that I last wrote Digest, dot-com my

And airline the can the and of partnership the it more cash operations, a long-term which of around more flow cost. debt enables airline they amount is and from taking be it's and becomes which And lower the financing between known at gets costs. a risks feedstock at the the energy producer more incentives -- of exchange supplier

gives at and So I -- that to insight think, I are a about look article, invite thinking we good that would take article. it, pretty you people the way a we're that of

Ascendiant from is question Markets. Edward Next with Capital coming Woo

you all Yes. and the Congratulations LCFS the progress on in congratulations credit on quarter. the that sold

selling to used expect on more able getting basis? are you're credits, should are also, on economics these more regular getting them you you we increase each quarterly deal? a And that As the to

them. Yes, of both to

early essentially the of selling it for but in quarter. week be end will them quarter, happen. previous each They takes booking the a be We will at maturing so the or to

have provisional So is X applied in expect [ month the the negative each we credits now LCFS of than then roughly to ] of generators a what's default significantly XX XX selling negative for XX LCFS first larger pathways we half quarter, [ million. first second, that of credits. And of X the are ] be negative the X the pathway to

then and quarter. generating LCFS So at XXX% to project. expect on paperwork be staff in in we've more to pace and it's have based fourth approval discussions XX% And CARB, on moves those the we'll with credits able the between will we third quarter been to be having if at that the the the we supposed depending sell move

So this very in we're definitely way. seeing that a year impact could material

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

we We more Larkin, through? one from flow that one let Kelly. Can question have James

line live. Larkin, Absolutely. you is James

how you Larkin have I Eric, could what much James I the talked about from is know raise you'll you Or recent guess, past, a interview, in about do Sandler. Piper a money India that? IPO talked kind looking potential in be way. that you for to on it raising there? maybe any of -- money This -- but an and you've updates

Sure.

As we expected.

what first contract IPO this some cost-plus progress and which step to our been IPO not of the we're a part deliveries as expanding continued India soon. first $XXX government. process then be of in third. be million the under are ongoing of is That's our a our through believe proof our This we into have We management India. has announcing team commitment the And enter great second we'll an about process our of there, to the but contract, and

So we low-cost cheaper proving for us our are out processing technology basically just business use including to model, feedstocks. proprietary our enabling

is the not management the members about fundamentals process. you'll process securities regulations be IPO make the all watch and an in indicators execution the But really a There So IPO, in you very it. just business I make quarter some really around the fuel, And in exciting you continued about of until terms are that on of that use expansion aviation for together India funds a have excited don't think of essentially to India. to press capacity The are our current expectations, X-month of a go business announcement. the that. about things new announce market is who releases sustainable this

Great. question more of India. And I guess one with kind sticking then

there? the On be kind to that from there be the different a other significant refineries feedstocks feedstock, CI competitive low-CI going of tallow Would would it reporting to U.S.? with impact

is it there basically carbon does tallow. intensity when additional that's intensity Pacific But product, across The India refinery. make tallow we Yes. then XX as have using That's Europe. take carbon million-gallon tallow tallow, a same refined built to turned a shift we and were built you the and to related that India tallow to That we we refinery, biodiesel that the where the U.S. shipping. why into Ocean,

American is disadvantaged end It's business. really and the tallow value byproduct North tallow the Hindu bought to difference, India though, of is tallow's India tallow. the country tallow. What compared country the intensity in to doesn't I'm a a is a that So fragmented going with a because up in animal what carbon you pricing suppliers call, from

the -- commercial just factor basically discussions. It's tallow the the supply of -- intensity -- in that's not necessarily it's lack chain So the and only in there's fragmented of carbon refining dynamics India. also just the underlying the

is Eventually, And as North of for position. acts just supply own probably our where American this chain. good India. much we our we product supply as product very have And course, we around to in our use to of ability chain, a market it really yet, continue seek as Valley, XX% to that hedge plant can from California Central of import own make get nice so our

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

everybody, join with us participating review Aemetis much, we for website. the talking an Please very the is you homepage you opportunities opportunity the joining today. forward if on Aemetis to about you And growth the posted This to presentation. at Aemetis Thank company of look have in us. definitely

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

This teleconference. concludes today's

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