AMTX - Earnings call transcript Q3 2021

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Operator

Welcome to the Aemetis Third Quarter 2021 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

Todd Waltz

Paul. Aemetis Thank earnings to Welcome you, the call. review third conference XXXX quarter

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

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

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

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

intangible, calculating the is directly depreciation preferred XXXX, expense on today measures Adjusted will accretion on expense, non-GAAP A to ended included the call compensation comparable XX, net a reconciliation expense, the income defined extinguishment, such other extent series supplement GAAP. expense. EBITDA most financial income, and deducted or September which A release our amortization units, measures earnings loss is of to available on share-based income and discussion on a the GAAP measures net expense, tax for interest other in plus and on of based quarter Our expense include review non-GAAP to results as the gain website. as and our is of

like or million Now, the Revenues XXXX XXXX. compared for review third to $XX.X of during the quarter the XXXX. million third the results third quarter quarter $XX.X I'd of for of to financial

Our $X.X per $X.XX increase for $X.X the quarter XXXX. plant the third But in of compliant compared Keyes expense America quarter in quarter general, the delivered in $X.X North third operation an the third per an also September. XXXX, of compared negatively Gross loss of $X.XX quarter during during the quarter for gallon. compared a by establishment from third to was XXXX. in third of the quarter price of price the emission million ethanol, was margin selling Selling, administrative the experienced the quarter XXXX, to income a XXXX, during quarter million as XXXX. XXXX the per from corn million $X.XX third credits during to an the increase to gallon $XXX,XXX saw of to reserve $X.X of per during up of third XXXX bushel bushel California average $X.XX million and were gross the Gross impacted third for

compared quarter specifically Operating the of in operations. quarter personnel was reserve Series our incurred connection third and expense negative expense preferred excluding subsidiary, Interest our quarter million A loss principally in to credits X.X XXXX during for intensity for of with million the XXXX. to of third XXXX the was third of our the compliance of the establishment development by result LLC a operating the third of other an initiatives. accretion $X.X low-carbon $X.X part of million quarter of expenses, million compared related As California XXXX, million units driven of plant to period and $X.X carbon insurance for mission and $X.X Aemetis loss as during Biogas of ethanol

investment loss accretion third to would million during Cash the Biogas the the Capital at and for end of million Net quarter loss have third by the during negative of plant, $XX.X increased a was a expenses other December quarter its or million quarter XXXX. Aemetis end to the recognized loss of on preferred $XX.X compared third $XX.X of equipment XX, of our property, of XXXX. carbon the XXXX XXXX. million XXXX stock driven for at $X.X expenditures Company by the per net preference debt intensity the $XX.X $X.X and quarter to compared end share. been of carbon in our of of payments initiatives. and of reserve, Additionally, million, establishment $XX.X of quarter increased with of by million $X.XX in the XXXX. adjusting third for by connection XXXX $X.X subsidiary million compared $X.X quarter low XXXX, third compliance to million decreased third million to After $XXX,XXX net the compared

ethanol with current As at we has per entered rebound into pricing $X.XX strongly market. today's the pricing fourth gallon quarter, in

$X.XX teams traditional the While changes construction indicate of forward while with quarter at XXXX. completes fourth move fuels healthy the the to our engineering That the of third projects. carbon of continue our corn business per our for review delivered quarter has bushel. same the of These low time, financial decreased cost construction a about average to market

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

Eric McAfee

below is production gas and Aemetis renewable intensity natural producing negative the carbon products, renewable Todd. fuels. intensity on you, of Thank zero including focused carbon

of and cash materials operating costs plan of fuel XXQ carbon credits, In standard, value while million under the California annual more credits, as we renewable standard, of the tax carbon tax billion waste a Our low maximize credits XXXX, $XXX X-year blenders projects to to early feed-stock. $X announced and reducing sequestration the IRS by using federal fuel flow. carbon grow than revenue

on Third We're capital. year, We long plan. interest USDA five-year This also higher with markets. XX-year, bridge $XX From on paid project the track million - using track the bond are on municipal the of Eye Department term we have financing loans rate Energy low growth interest rate and with financing. from

for track passage loss to per third-quarter which $X.X with X in Jobs earnings establishment for are third This adjusting Act our California The is been Infrastructure, our Federal carbon plant, one-time the net Keyes would Importantly, continued fuels a renewable all After $XX.X legislation reserve ways. years. negative on million the related ethanol of and quarter, share, a last the have renewable is for for Aemetis' emission various positive businesses trends in to the Investment supports in growth with credits, week. U.S. line which fuels India regulatory have plan. $X.XX by our million both the the of the and improve low in of

First, plant, and pipeline the project organizations development. have the provide Energy is loan rate, X% XX is and direct the fuel expanded sequestration year, of government funding working these for low closely USDA aviation and guaranteed sustainable provide XX-dairy project, diesel under Department that to billion the carbon and bio-gas received or digester with renewable to funding interest to of a X% loans. programs dollars of Aemetis

per benefit with Second, instead Congress plant of annually. as to X-year the the stability and from and aviation fuel. project to requiring sustainable $X tax greater diesel This renewable renewable to of extension gallon produce we products the be at the produced adds and Riverbank biodiesel proceed credit will predictability act Carbon diesel Zero our

$XXX direct from per year be injection, credit. direct produced sequestration ton, Fourth, by transferred pay our projects aviation a sustainable fuel directly paid in per tax metric generate are pay credit ton the to the receive of planned provide the carbon Third, per of Aemetis per the federal million structure. tax each year credits under funding addition, the sequestration expected federal With to carbon up government. tons plant gallon program capture could the will $XX but per CO_X year in X will from tax of $XX and project, cash Riverbank the up to metric $X.XX million the

of During achieved quarter milestones growth of profitability toward business. sustained important the X of in revenue our third XXXX, each Aemetis and lines

of will Aemetis and businesses. our highlights Foster, review of renewable gas Andy and the ethanol businesses, president Biogas Aemetis fuels the Andy? advanced natural Now,

Andy Foster

below negative production that to our September. in while to producing commercial a exemplifies reducing is Eric. perfectly mentioned, renewable Excuse focused intensity, zero-carbon on often RNG bio anniversary production negative fuels. of economy the prime natural fuel approach the emissions me, below describing sustainable when example renewable the which including we products, Eric are and as recently carbon intensity Thanks, renewable is dairy-based producing natural gas, me, X circular refers business, that carbon renewable a carbon transportation marked gas gas our Eric greenhouse Excuse one-year fuels. of

as digesters, lagoon which to ethanol dairy the on-site some moment infrastructure the to lower Let milestones CI allows and dairy market. produced. Keyes biogas for unit central us and Aemetis we a project out at dairy processed key achieved credits operation covered network RNG we on take as me the of and X-mile deliver of X digester used pressurization completed monetize score boiler XXXX, the biogas build In that pipeline by including Phase digesters first California will to the a of X the September utilize a LCFS plant, Aemetis supporting Biogas you update and our through cleanup owned energy to the the commenced of

compared During carbon for a gas. our CI issued biogas, ethanol for QX-XXXX, the intensity updated a California intensity positive to score petroleum plant, fuel XXX carbon the pathway negative and Resources approximately natural XXX Keyes Board an utilizing for Air

In Keyes X pipeline biogas these are next in unit, X RNG Phase the biogas components fueling pipeline. miles for we pipeline, interconnection additional XX X an schedule facility, bio-gas including currently utility building the station completion dairy Phase Each of main project, of the and of dairy X of the and addition third year. of digesters of gas on the to cleanup quarter operation, now plant, are miles the in at digesters, and XX and project’s

dairies now with have signed agreements We XX install to digesters.

that discussions dairies dozen under dairies the advanced XX,XXX with in sign quarter current more approximately cows have than are to We additional and a discussion. expect in X -- we more representing in

Gas receiving to and dairies in the This to week, connects that area pipeline built, are Electric bio-gas unit PG&E other completion pipeline. achieved the Project. also facility local interconnection gas the of from Biogas Pacific Aemetis natural Meda's would we're who the the the in mechanical participate gas cleanup As inquiries digesters like and

to commissioning completed the biogas facility be when upgrading We expect by becomes system interconnection XXXX with Thanksgiving in fully operational. January Aemetis the installed to be

ethanol gas. natural equipment The quarter, renewable During the foundations at began the upgrading Keyes been main has plant, biogas The located to we facility been all and systems and into installed. have dairy major of have construction placed, biogas the upgrading biogas The third completed. now January in systems completed, roof and is been are structure, completed being scheduled fire prevention facility XXXX. calibration equipment convert electrical be to

expected the these digesters currently of is first will new guaranteed completion biogas next digesters, rate week construction in our be third miles the next close USDA The closing over and end this construction. to cleanup, next signed USDA digester the in installation was XXXX. modularized a construction, half with for and of million next by permitted years. of pipeline, to was of underway $XX of of with on are skids, a biogas delivered cleanup an the X digester XX completed, interest advancing key roads biogas expected Aemetis weather project. XXXX new some in million the encroachment remaining bank of Valley XX the who XXXX pipeline X in Energy under highly gas dairy REAP, the been permit be with the which about for our our subject are the use Overall, And experienced Construction associated sign sheet of hires loan financing the second digesters civil X in is XX weeks. XX Dairy Program, be our related Senior biogas the completed, completion will X% the dairies digesters closing for at has installation XXXX miles and to X few and up financing managed construction dairies continue the and on County for the been further productive in An Aemetis known additional in an additional and course pipeline. the for $XX right-of-way Manager be for of dairy another biogas under project at team, pipeline The repaid expand of REAP X construction Supervisor to quarter, additional a process digesters as existing construction weeks. of engineering dairy in to May has under is and Digester network. Operations holidays. Renewable with XXXX, Stanislaus We've quarter, permitting delays of upcoming terms. pipeline -- period is biogas X of pressurized XX-mile same QX with X.X nearing the next the of recently to A the we a million for dairy X digester including the dairy half extensive made X in of next QX dairies connect management X term fully renewable gas construction to California X Central the expected experience. will granted Excavation local to for segment During now county required projects To America

feed, XX renewable which current about project produces California growth, natural by year Our which XXX,XXX also and plant, program, absorbs Pipeline practices pipeline approximately supply production produced per ethanol, fuels, per installation at the the and Aemetis and of industry energy other feedstock contractor our who awarded of To review our produces RNG Construction from and have our but veteran, businesses The turn Those produces we has end Energy Aviation that team COX from in to Aemetis of methane The ethanol Phase RNG. in carbon agreements involved that Fuel, is number about XX quarter. Sustainable sequestration renewable of California a create from cows uses and in of lead of of Trucks grants wet production working contract million the waste, ethanol ethanol worth the renewable the number has ethanol X production for by local the while efficiency Manager, to of capture Food produces eat gas RNG $XX day plant. XX-year during million fueled fueling for begin will for the renewable station of we and RNG Aemetis feed-stock locations date, PG&E's been and Agriculture, which partners throughout Commission, that plant our by Aemetis than on-site and million dairy has Department synergies biogas animal best plant our animal instituted at be the management cost approximately with The the able to resulted high-value gas. be our at supervise more stations initiative a fueling of government the natural atmosphere with expect many RNG Keyes and compressed dairies agencies pounds cows. distiller's grains or agricultural X the feed scheduled facility California expected announcing savings off-take a natural acceleration. Keyes feed. RNG gallons these the in

plant. California moment take discuss ethanol our Let's a to

earlier, price corn the XX% revenues over reopen year. ethanol and by also supply gallon months. gallon corn year-over-year a margins to ethanol price of decrease per began in quarter, a the while $X.XX from has California a robust the we current ongoing few in for about XXXX, with quarter. railroads. third past significantly demand tighter to the in margins, first ethanol to of has with last the the logistical profitability saw delivered corn positively increase compared in High improved today's have in An per the of in sales third As prices impacted significantly the were half Todd in quarter ethanol the in $X.XX reduced Since increase been mentioned improved and issues from margins economy

bushel. $X For past this more per per to summer than bushel today's $X.XX

as domestic to U.S. quarter especially Ethanol of favorable at imports, the ethanol levels, approximately XX% exports lagged XXXX fuel especially a and low Brazil, that bright we corn higher distillers’ California's in XXXX. While to XXX,XXX fuel by favorable to Strong remained pricing and were wet prices and carbon for distillers due demand producers grains higher have persistent of spots the XXXX has quarters result gasoline ethanol Brazil Brazil of prices the for from in of product expect overall both -- demand cows U.S. standard. mix, received X first third California continue. oil been

by per just ZEBREX upgraded, the The the credits to $XX under driven corn prices, unit than metric diesel the me Mitsubishi tax CO_X at and compressed, and cash take completed. and Messer, flow $X.X million We're plant being at or installed, use design reducing using year, and grain out million which XXX year tons million currently are demonstrated key steam in from about X,XXX reduction gas, less delivered being delivered petroleum ethanol pounds produces week corn distillers, at our per grain moments hour. operations well test distillers steam runs expensive in truckloads an that Keyes day. renewable production more steam as carbon-intensive, is about ethanol wet XX,XXX Since been revenues consumption hour per The Let The oil of is the oil have this goal which gallons for and meeting a exceeding completed, been distillers’ lower XX,XXX the our provide of XX of milestones. million intensity metric increase ethanol of carbon approximately to steam per favorable ethanol. use dehydration few the significantly system are fully and mostly expected than pounds per and as been fully separates Keyes day costs water of produced with operating completely has generates X.X law. reduces pounds the more has system of ton day corn natural distiller’s plant than is capacity per processors steam local of plant dairies pricing. delivering when increases $XX ethanol per poultry from on by oil, to feed. non-edible current food which biodiesel projects the advantage to approximately of per reduction in to update by of about full plant per gallons stable sold ethanol operating The projects taking has with XX% strong XX is through of The in been

Additional underway ZEBREX during QX currently optimization the of to expect is and we commission system XXXX.

generate being Additionally, contract we intensity approximately a is and expect battery to to of permitting designed is of is utility low solar A range total megawatts the equipment the power the X/X already December. installation procurement Detailed agreement for especially considering cost, interconnection California of X.X d backup The end in with Energy district funds is an SunPower EPC process. with the by $XX and sign million project microgrid month. solar at in that of this to with grant a power expected $X the underway, engineering Commission is begin cost. unit zero-carbon electric million array

potentially use Finally, the natural to gas construction. procurement, petroleum for further at the and our reduce recompression reduce natural steam the plant or moving ethanol and with Aemetis these use eliminate negotiations significantly completed, to detailed to ethanol upgrades Keyes plant. is designed When even petroleum forward underway are system mechanical vapor gas engineering,

saving turbine steam-driven We utility gas up pipe to per million costs. $XX transmission of to eliminate system natural or cogeneration year reduce also expect and our

motors track Aemetis performance including powered plant solar using to renewable efficiency and power biogas Our California hydroelectric plan. In the is project for Eric. and primarily sources, local businesses intensity, pumps by summary, on milestones the being carbon ethanol are X-year upgraded electric with zero and operate power. operational our array biorefinery and high

Eric McAfee

excellent Thank your Thank the you is you, Andy. all work doing. team all for that

XX fuel waste SAF contract of be that Modesto for trucked The Delta continues XX SAF Riverbank, for Aemetis the intensity jet-fuel Let's negative California. Bay near and million to agreement, use Airlines milestones. each SAF, in in to Area discuss aviation for Airlines pleased carbon XX zero from carbon million our of neat, gallons announced jet-fuel. delivered wood Riverbank billion blended, at Airlines. achieve the blended with Delta sustainable as petroleum gallons year. from blended gallons a provides of major with to the will combined pipeline will SAF carbon farm years diesel million biorefinery under-development sales the We're production supply Riverbank per million we blending zero the $X rate known tank via XX San gallons XXX renewable hydrogen orchard Recently, agreement Under a of over to fuel year, jet project using the plant unblended be Airport the by neat with Francisco Delta

other San agreements airlines, contract We final with and Angeles are the additional service airlines, in review for airports. Los fuel aviation including that Francisco major foreign

agreements this We expect and month later second to of aviation starting additional billion quarter $X.X sales announce about fuel XXXX. of through the continuing

addition corporate and have Fuel. airlines, international Sustainable in a to leading due In from FBOs private received jet major interest Aviation of high owner we U.S. jet to interest level

example, For Aviation us private jets requested chains California and Sustainable with to addition have blended Fuel airports corporate for Aspen by locations. in and to truck California use locations Vail to FBO

is The and already to signed renewable has next signed global currently more annual been USDA. begun million site that Fuel of We for America to and agreements by EPC moving The in permits, diesel renewable work than just our million the and additional the that currently XX of quickly EPC to south steadily. billion renewable for $X sales has our after And the renewable generating plant in million forward XX-year designed from an or XXX of per CTCI, as Phase And the a $X announced agreement. we agreement the plant locations. the sales contractors We're with completion of Aemetis $XXX of $XXX funding in blended been more phase expect Bakersfield, to million million than of contract plant ideally engineering suited addition XX location, the in generate energy cash is XX that diesel under gallons XXX-million-gallon production sales million year engineering sorry. with constructing million production. year USDA diesel reviewed California, $XX $XXX X-year of mid-XXXX. annual jet revenues, its USDA. billion per I'm completion year construct support expand final debt approximately support financing of X-year closing in has that diesel XXXX, to the have of XX-year produce cash is the $XXX the contract positive few of Riverbank the to part chain revenue sign CTCI diesel to of flow billion positive construction per USDA phase million Sustainable jet plant of gallons plan with In plant in a of and we year flow. plan the to Aemetis diesel truck We plant construction that to are jet efficiently. plan of a to $X.X Aviation and and per review with California renewable and for gallons deliver a Riverbank of X X stop million major year the announced renewable jet months, is fuel,

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fuels. circular which bioeconomy by-products renewable and as in low highly feedstock carbon synergistic these produce negative we waste a of intensity are use materials and All create and to projects

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

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

Operator

Mr. you, McAfee. Thank

some question-and-answer will we be conducting We did a have queue. And [Operator session. questions in Instructions]. now

is your Please question. with from coming proceed Manav Suisse. Gupta Credit from first The question

Manav Gupta

and mentioned completely Congrats team. on for that's doesn't and what $X.XX income at it, and qualify thought guidance a proposed your XXX, and at BTC. it's by positive Eric EBITDA adding was you is and till most in billion Eric contract have we Hey, guidance and your quick all, jumps your happening, back the $X.X because other being And you when increase, net My better, Very jumps developments and Delta are and the build about XXXX about $X SAF, X for the first for simply is, deal clarification those look that will likely and it negotiations. here, not XXXX. BTC XX. means by XX% RD, taxable BTC numbers your in all

I'm adding Now, up? that Basically, are taking a if those you bit. existing BTC guess, could through I us guidance. just numbers math and to math making sense little walk the your adds as

Eric McAfee

tax was year Thank Congress policy, was that pulling to know, But pass correct. for end would the It's thought of costs of. that's times we a The out first because five-year as you the in and And every million include $X.XX our you, as plan year, execution. are of the not received. us very calculator all. the you it gallons they And million credits. The Manav. XX at thank reason doing times you're be our additional effectively $XXX supportive those math. profit exactly and would not and before quarter largely the comes end it credits tax we unstable change past and diesel just then of we XX renewable million did business our $X, running why the with because don't the additional gallons year, it to sometimes And thought that basically we

cash that is to pass in fuel increase order higher requires in sustainable aviation larger technology has is a selected that renewable credit some of occur a essentially to yield to designed a to and so lower produces with what from they fuel cash flow that. overcome is costs of intention build including they native the have plan frankly which our renewable we facility France five-year production upgrade plant by producing at have a Our aviation a that of We of fuel, What the capacity. increase aviation yields wanted do [Indiscernible] separate XX% come tax the at it. aviation other of we a their fuel. capital expected, fuel. plant, actually to not bit and aviation take their diesel Most doing in the If

to was has low expected we better than renewable role first strategy carbon good that we and plan. updated focus what in necessary at our a our X-year out, include we carbon, Our believe on I think case, to in of it's aviation intend the be and paid negative, quarter and the fuels

Manav Gupta

you people Is and that higher-level whatever and companies Okay. like process, you of under a projects here. to the will floated over would very who come on that we people have to peer feeling not intensity sit these as and are and follow-up to comes And talk a project sidelines minimum price of try supportive or help SAF's come pressure here lower when and fuel quick understand There yours economics a the something feeling pressure. they be price being case do, second of and want there and people. as developed more carbon and speak at a to get they actually is speak do it to to dip the in lot difference let just is, they CARB, but carbon is where let XX you the this And have do, crash. these price you like CARB or lot the under there they'll making that they of SAF's will on the try actually to XX

If talk you could just that. about

Eric McAfee

Absolutely.

they is this the going for that price credits talk the XX to not of as to month was held XXXX to operating necessary XXX California, closely Board tool Aemetis putting to just, in negotiations years necessary way to roughly of given from it every electric or decided the met markets plus fail. informal us what the been the credit in made over tell would to units. have actions original to an They hearing wanted their production then and for set cost-of-living high the year taken example, to was utilities, they the support caused year. price They more the California committed had the and marketplace, all are about action, make February as of $XXX And phase are LCFS know, the to go support and after absolutely very hit LCFS fund our think a ago, this active final enough in year who saying to pure now not take because to Resources to every not ask working try what they price decided they're the of value caused changed one cost-of-living as so price us is to plus target so was about and to credits they with to was and are program needed and at doing single almost necessary the them up years of you interesting change that of concerned $XXX give stations, far that the $XXX public credits $XXX the next We required course, about in we until whatever those charging rules XXXX. not Air steps may increase that credits within steps the California XX Resources the too an or to where index For carbon And $XXX index project. to $XXX and We're the taking the X.XX% projects, price next the $XXX. that limit. go. year meeting let be to them a number would occurred rise Board a that

Manav Gupta

my congrats positive all on and the much so taking Thank for developments. you questions,

Eric McAfee

Manav. Thanks,

Operator

proceed Stifel. next The is Please question. question from coming Thank Nate your Pendleton you. with from

Nate Pendleton

my for Good taking morning, questions. everyone. Thanks

first question. my For

your a as sign-up and build-out where Regarding from dairy, plan RNG, could an relative update initial to both perspective? operations you provide on stand your

Todd Waltz

Andy?

Andy Foster

our they been perspective. a and from meeting first We've fully now, dairies a operating for year expectations are exceeding two our production

have that contract As have under XX we right far -- we now. additional dairies dairies, as are

there's have in or about expect year. close end we discussions active then X of with. that the And XX dairies so are to by additional We this we that

in project. the I of of think we're right like terms track goals scope the feeling on overall with we're our

Nate Pendleton

for Thank Great. you. And follow-up. my

to you perspective high able are CCS, a smaller to the Valley? XXQ for Aemetis to for as operations? from credits quite other and geologic potential given differentiated compared how others IRS And in thresholds Regarding qualify a you're Central is COX could speak capture serve how the barrier

Andy Foster

of COX. advantages have One have big we is we the our own

pressure a get restricts you go to in if that well really proposition that place buy those in And that of difficult go and of that or and holes a you gas facility effective liquid million sequestration up. appropriate. well. that within a areas back the go X And into an and your to single natural probably up miles a to come have lot It's It's really a for to number capping not so, has go helpful gas sequestration high especially already producing oil you caprock, but you carbon means and has California a very you of And at in than from an put extensive lot if that lot Bakersfield the component you minimum COX is actually shale more our Central of with own what of natural field thresholds natural requires have we us. with gas PSI facilities, liquid frankly, injection production, fields. exceed layer, sequestration. of X,XXX are have formations buy to of business as your holes natural single you gas which well if we're allow area. and much, for because which a the us Valley, every below to get production COX using very turn a North you're when The near $X/X per gas very down and spend oil have well that you every

have You have underground formation. correct the to

the on You people don't a really want population of surface.

COTs is be because against to too sequester slope just rural in really to with up those or up mountains is the area, need be much slope. you doesn't your say cannot actually your You agricultural a

spots and that lot spend Stanford have. where our makes locations at work excellent Valley, [Indiscernible] in of a other the of think we Baker at Hughes up could and partners around were looking potentially but so time some and spots the advantage. certainly, in correct, and wells X we with these locations, a additional have, I lot Central area work Xst-mover start end don't certainly identified us, these with you we've was that you this a and the putting of So, we your footprint is kind and of wells

Nate Pendleton

Great. Thanks your for time.

Andy Foster

Thank you, Nate.

Operator

Securities. coming the from from Truist question your with next Levy proceed is you. Thank Please question. And Jordan

Jordan Levy

And start and through you is unit to as the Afternoon, you I right technologies comparison asked the of specifically, Eric, on could and view gasification some things the recent other could of oils all. reason this veg talk so, deploy? to talk technologies Riverbank more versus I maybe buzz the the how with this through like view for you around of why economic alcohol-to-jet And you out us or the economics a other you for diesel renewable and if between hydro how combination given there? some question ethanol-to-jet. versus or wanted the maybe -- view oils treatment, and SAF hydrogen there

Eric McAfee

call being it's current you short I basically renewable really all are it's business. And Okay. technologies production alcohol-to-jet profitable There popularized would oils-to-jet. I'll oils-to-jet and production the a today. of give worldwide, are what one virtually jet X other One and is answer. diesel the a is highly

Typically, comes in coal hydrogen Midwest. And then the publicly the oil that's And usually margins that's most that and a last look because and reported increasing look by electricity. and you proven positive known at energy and grown the is it. what natural out And REGI NESTI, it's the taking a field Asia gallon usually petroleum that's hydrogen by energy it's ground adding the quarter. plant are at just and $X.XX about most they carbon-intensive You a per to of pathways cheapest the XXX is U.S. gas. because at a under to Valero very California. $X.XX of of electricity the It renewable in in source its use the

we We're intensity, said, got we distillers of power, We carbon corn we producer oil so a in our feed comes off to stock. well, the zero California it, at did what a looked that's So, happen XXX%, hydroelectric a is have of largest part dam. interesting.

or And Valley, we is Saudi Arabia almonds gas of what of currently burned instead would our that natural call in So, also California we sits I petroleum electricity have the in zero the coal renewable happen CI electricity. waste or the carbon negative terms source waste being wood the to have electricity of in Central of field nothing.

into it hydrogen, we So, approximately And negative hydrogen would XXX negative with intensity. by XX that has end a input. waste up turning carbon

those of middle looked etc. companies aviation cellulosic what's in most we're bio-fuels these derivatively formula diesel and we at of improved the in and because feedstocks to intensity on the renewable of carbon said the and And sustainable we the profitable inputs, So, just business hydrogen fuel. in existing tremendous the make just sitting

in but economics therefore also we of are and those the is positive by going competitive California. We intensive carbon are it, our positioned can close in inputs with CARB. very, optimizing next our and anybody. valuable recovery alcohol-to-jet, using largest jet to those businesses. advantage lower us. companies more Currently we you're and business from So very California, a I into having the cost that And we by we we very producer which we shipping folks optimal margins with well valuable obviously full if as imagine output. take in Alcohol-to-jet ethanol into think as talk happen to as strong ethanol. enjoying that the And the we're actions sustainable, don't especially be to that those for as one let's you think And advantage, for inputs turned businesses through If about hear the support interestingly well year about it of is have value to work call think LCFS soon lower-carbon are are expect in California. prices ethanol we fuel, for

a do alcohol-to-jet is enjoy to if and business in and when to opportunity upgrade think margin be ethanol going an the to to that well-positioned I necessary. we're good continue

Jordan Levy

your talk change also, as of specific business. for happens That's sort see any and see just X-year biodiesel if purchases follow-up biodiesel if see that, thinking revenues your to bring and with out maybe you to wanted plan. Eric. just there's how great. any plant how that the at facility And been to and it to I you're near-term India a thing. you that fits more wait government all And you Thanks means about potential to into forward of what could

Eric McAfee

Yeah.

switch. The feed government India differential biodiesel on-off instead plant Our as stock and between purchase operating prices. of an

just largely due their you get slow suddenly government, If literally India. prices been COVID, to $XXX India slightly had at revenue positive, very, you've million The in moving business up. very it's

gallons setting process While XX oil they've against achieve been and through role think everybody our India doubled doubled just execute they're product. We X% market India policy. presentation 's billion you carbonization. have we've from - to the Minister will that's play. national listen a India price a XX What able not and billion Glasgow, demand, new haven't playing to they out prices up catch to de committed Modi is do going And XX, It COPXX keeping X.XX a X play if will biodiesel. for trying gallons for the they of But of a in though, We like certainly of year that to And at every not Prime such view to saying, the with up is think this bio-fuels in catch up. the oil. in India they government gosh, to biodiesel. to global a been been a has They've of role have stated that. price strong their recurring months would

said, balance have well-positioned to that and we us, investment, have XXX% a of India, which exporting India we create our a employees, government tremendous their the for for to we by revenue went trade. investment for working of we of so, we frankly substantial is and of And are additional employees lot and out have

ocean, the And of so, years we of we California are maybe shipped a many a and well-positioned, kind the so of is course. are across when turns the the And or It's it biodiesel just were arrives, you it a solid. can't approval within hopefully an into pour it's on natural even into when and tank market that us cold days ocean, getting weeks to into very because took get. truck.

and And turning into transloading have into that's to facility trucks. of then heating ideally the tanks we actually situated logistics. steam have the it Riverbank liquid of You handle this back logistics and kind

We - pretty margins. a California we and with rail our believe to, we much existing at have to with be able a high to biodiesel place, so XXX supplier low line railcar cost very very are team, already in into become able what and of just

Jordan Levy

much. so Thanks

Operator

is the H.C. Thank from question coming proceed Amit from Wainwright. next Please Dayal, And questions. with you. your

Amit Dayal

my going taking supply the market the challenges, doing priorities. are questions. the This some Are for that now? through you Thank chain coming changes digesters right etc, near-term there guys. XX Hi, in of any to for execution deployment schedule those

Eric McAfee

quarter. last since Not

thing. materials required [Indiscernible] the proactively whole have we a Andy, I bought bunch any of for you think do

Andy Foster

Yeah.

that material gas the materials advantage I in we HDP go the go where XX% actually interesting of at it were and price versus about pipeline pre probably about the the we COVID, XX% out for think savings, below of During and -purchase liner used able to the at April the for transmission able would zero. of X. today margin take or May to was of We when it of -- similar XX We XXXX margin. it's out to were oil to were purchase digesters. The of go think cost able original

COVID during advantage of ahead that fortuitously chain pricing. take jumped lower advantage already sort the we've of of taking the of supply So, to

in they need, piece the shape good as not substantial global equipment as of were It's summer so built digester that question in materials, are main everything those have units. fall. will into perspective, next staying week, be that we're after of pre possible don't being ahead to that a there's that supply the a and -treatment really create it process went They'll trying pipeline, -ordered our for send liner dairy-based ahead biogas stay of say as also When the any the RFP economy much the the for modularized. So, out early it next We're ahead stay we're and up, skid ahead goes next pick before do And currently during from far They curve. to those We in us think very started to be little the phase we X in and of built the overlooked a us. that to next dairy delivered now -ordering delays skids. as of cleanup to we we've of of trying we so do to for will challenges, X X the to for the time we're the at hub. that digesters see we that but by chain pre delay -- digesters one pre

Amit Dayal

You those the Thank flows were still that P you highlighted are bit the there to checks from there is cashflows? quality to digesters receiving that or a some started And you yet starting receive needed that. you little lagged? deployed, for before happen cash

Andy Foster

monetizing through ethanol plant. is the are at the the produced for currently way So, LCFS the we that

a call score X-point XX. which a March year XX for and approval the Keyes close from X-point plant of this about it ethanol reduction We received we a in in reduction. got pathway lowered So, to CI to the

so, LCFS the replace for pipeline. us to dairy as gas the able monetize taking wait at we're over first production an able little two to And energy be a sit the through ethanol. by it natural monetize a the the boiler bit utilizing carbon-based those to off That biogas other for to dairies some to of around coming gives the issued existing for at the X advantage gas plant been already developers have of digesters plant. and the of source in from score We've and who the a CI

then for XX and access complete two pipeline all all after days, energy PG&E next XX to able for dairy. When for dairies as utility in each that. the have our we're pathways on-site to and biogas maximum at come our we in monetize the those plant, about and can far for the as will pipeline, able One send apply send as those gas your days, CNG XX-day in question pathway using do that soon there's to data period pathway. And one As the you the flexibility we'll CARB one takes then pipeline X -- to we'll as dairies, have pipeline. it's something the about We'll done, XX We'll transmission the as have of we the which station. we'll like to for to the XX that to the said different for the a our happen can ethanol processed to be where approval and monetize. know, and begins. when on fueling as or sorry, terms as we'll you pipeline, XX-day soon -- give But interconnection days then collection another about XX-day interconnect,

pathway we day molecules finish, provisional the then that's take either been - a process. full or to can once and store the granted from takes XXX granted, it's about amount monetize which we or pathway -- start So, has those XXX-day usually a can the

Amit Dayal

you some And the Delta definitive Understood. agreement them should agreements as for on, you full that are [Indiscernible] we other use. working that. Okay. then with view Thank for and

Andy Foster

of understand cargo sheets with found forward number a them. because they along, Yeah. several jets very fuel. are tremendous to hydrogen that They me you not that a in with just memorandums or Delta equipment. fully are aviation have but with fitting gone are [Indiscernible] the happen do see group sincere airline And quick local very, or we I'm These working be a we've ways see And tough And our a size interestingly, sustainable for currently are quickly there. to know their to wonderful and are months existing is incentives really airlines well. anytime lot that have the or but community soon, as not meaningful a than people other making and commitment backgrounds. going it's proactive to sincere people. we probably we're of coming These in electricity to ship situation. found appetite the other -carbonize, And reviewed, global very a signed. We've quickly, group similar is of at understanding non-binding passenger do community, worked six certainly, or also pleased of more And to to to, progress term in was would it's very bedded. they and a work Airlines their restaurants. just napkins ago. with. There's are and of de We asked organization start expected certainly incentives with would and if I product, the lawyered, except to nothing

Amit Dayal

Okay. one last just And one.

get utilized, begin exports you process? to plant approval quickly can India, how the for If the that in etc. being

Andy Foster

will would fully This to to to shipments lot shipments bulk in have process production operate. that's that on We our purpose to ship. about And of tanks, does will initial with capable of volume. We're not be shipments knows of we're be entire the higher scheduling, X,XXX able got wait bulk and schedule around doing operations ISO some but days, plants to a to flexibility for be using that. not have export so be few arranged. not takes with going then a a it just just gallons matter and be We'll per be what

And in so, be the easily could first we shipping quarter.

Amit Dayal

That's much. Okay. guys. have, all Understood. I you so Thank

Andy Foster

Thank time. out we're of running you, Paul, Amit.

more calls. X maybe X, take Let's

Operator

Okay. are in two queue. There left

from The your with Ascendiant Capital. coming from is Woo first one question, Ed Please Ed. proceed

Ed Woo

you is will the on anticipate do think when and Congratulations all question When operational? My you on groundbreaking be the milestones. Riverbank. plant that do

Eric McAfee

is quarter be We're year. third groundbreaking to of expecting going next

which the we're they here. roughly be amend because the finding are lot working the think particular that's we're plants on vendors we're time contract that staff the advantage going of plant, I equipment, have to operational months of run completing long already roughly XXX-million-gallon is so supervising These and of are to with we're I going really say that. get and save time after the us those a times and using, lead just think usually ourselves a the some in because a would ahead of ground. as position contractor I to XX game, we and they need by has distinctive

numbers the So, we'll year. those third we updating be get as to closer quarter next

Ed Woo

and update good the for luck. Thanks Great.

Eric McAfee

Paul, Thank you, any or additional callers there questions? Ed. are

Operator

Capital. Marco question coming is Stonegate your line Rodriguez. is a Marco have did from We Marco, from calling live.

Marco Rodriguez

afternoon, and been Good my taking guys. answered. questions. Thanks Most have for asked

a quick go item. to just through wanted housekeeping Just real

in On bit the gross some loss it was took remarks, just a looked prepared little if unable get I like But still that? year-over-year. you about in down it reserves made drivers to the excluding the talk behind Can unfortunately all the a down. at look quarter, I believe comments even you

Eric McAfee

I down? didn't get metric. was the What

Marco Rodriguez

gross The profit.

Eric McAfee

by If what the I'm sorry, our you're -- caused We goods the during cost to have comparing, be for X-point $X.X California that reserve credits that's million increased of a sold quarter emissions $X.X million.

Todd Waltz

And ago. it XX.X from recorded year. loss Todd. put quarter X.X. for the we really that -- it this Last quarter It last was same with would quarter Really level us last put sets what year us we're exactly a at XX.X, adjusting year reporting this would -- year the is

Marco Rodriguez

right. All Thanks. Appreciate it.

Eric McAfee

you, Thank Marco.

Operator

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

Eric McAfee

talking review website. We the look on Aemetis Thank corporate participating shareholders for was that with about to Please Todd? presentation you, you Paul. the the Thanks investor to the Aemetis growth today. the and and forward presentation Aemetis Aemetis others at analysts, joining opportunities in Aemetis. us

Todd Waltz

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

Operator

concludes you. Thank This teleconference. today's

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

Aemetis (AMTX) 12 Nov 212021 Q3 Earnings call transcript