AMTX - Earnings call transcript Q4 2021

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Operator

Welcome to the Aemetis Fourth Quarter and Year 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

Kate. Aemetis Thank year to Welcome you, the review call. XXXX fourth conference earnings and quarter

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

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

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

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

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

the corn the to Now, the of for quarter of I’d like $X.XX per quarter of average fourth fourth XXXX XXXX an results [ph] million $X.XX XXXX. a review the of quarter selling bushel per during $X.XX and million fourth from end quarter gallon the of were per Revenues during to for delivered gallon $XX.X the the XXXX $X.XX quarter price per compared fourth to financial price ethanol during year fourth quarter fourth from The $XX.X XXXX. of of of of XXXX. the quarter during fourth bushel rose increased The to for XXXX.

loss a Selling, Dairy general for $X.X both profit principally $X.X Operating XXXX. profit Gas for consolidated the compared an of in December to the fourth was gross fourth of The million charge. during segments $X.X loss the ethanol operating XXXX months compared the quarter quarter fourth of to of compensation distillers fourth of Net Our the a loss $X.X fourth a of XXXX, XXXX, of to administrative million for during stronger net the to million the quarter quarter million $XX.X increase to Gross during California quarter XXXX ended XX, Natural Ethanol share-based expense of loss during three increased compared due XXXX. compared $XXX,XXX XXXX, of non-cash, to of quarter to the accounted fourth million periods. profits during profit all $X.X the million the $X.X XXXX. XXXX, of was and gross the quarter $XX.X period million to pricing in reported for grain was was for attributable wet compared fourth XXXX. gross and fourth quarter same million

increased during months margin XX, profit XX gross our loss and year December expenses December an in in expense Series Aemetis year year Turning December to were Ethanol ended to Revenues Biodiesel XXXX XX, from and compared to per ended compared during XX million segment ended XXXX, XX ethanol $XX $XXX XXXX, Gross to interest during of million the for for XX California to $XXX with $X.X to general gallon expense same in $XX.X contribution The recovery margin demand lower in December accretion the ended administrative months stronger during same primarily India XXXX. per in Selling, compared $X.X Biogas was disruptions million California to segment our corn of the XX, Interest same ethanol preferred million to gallon, revenue for December million during the XX, the end period compared months units increased XX, million associated in as period and the services. compensation, a for December results excluding December was our the and $XX.X prices in ended professional loss of compared to $XX.X for a price to lower in sales the the XXXX, XXXX. operating same year LLC in XX, expense COVID-XX XXXX. XXXX. continued. Operating which during $XX.X the the revenue XXXX a property attributable XXXX, period primarily XXXX to of the coupled XXXX subsidiary, for XXXX. XX, months the ended the increase December from principally increase the alcohol for with million driven is due of financial as insurance, during XXXX, XXXX, XX, for increase XXXX, stock-based for XX% compared gross $XX.X $X.XX the to A $X.XX profit period increased other ended million was high-grade from during for million profit from million charge sales

XX, from in $XX.X connection $X.X XXXX. activities XXXX. to equity the Cash accretion $X.X the million with $XX.X to during same of million preference million a loss year XXXX fourth to the the $XXX,XXX others during property, increased XXXX with XX payments fourth made at This million in end debt at plant Investments Additionally, its months These the of end our the quarter while were of ended our the offerings XXXX. subsidiary XXXX. were review of carbon quarter increased million completes compared compared December in ultra-low recognized by year initiatives during was of of Biogas compared funded million. of $XXX.X on stock same and preferred XX, LLC our Aemetis repayments of and proceeds end XXXX XXXX. million December equipment period net during in Net $X.X loss $XX.X $XX.X and for ended million to the period of

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

Eric McAfee

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

Our projects California the blender XXQ Standard, maximize fuel standard, carbon renewable carbon the credits. tax Carbon sequestration federal under Low IRS of credits the tax value Fuel credits and

million $XXX projecting to annual to a five-year XXXX, by EBITDA we updated million annual year to $X cash plan $X.X Last stock. of announced the than While In grow reducing early flow by by we costs using revenues XXXX. month, increase EBIDA materials and and billion XXXX. year to as to billion to of grow more $XXX plan revenues waste five-year feed operating

$XX Eye. track about the year’s Capital and paid Eye on million we are higher rate interest million year loans Third to remaining past five-year this to from We last have Third only with the high rate with plan. loans interest $XX outstanding year reduce In bridge of

also for rate that financing $XX in expected our Department We biogas subsidiary States on project is next of from to growth using are funding close track of long-term, XX-year, the low with financing the couple million United months. including a Agriculture, interest

renewable blending gallon, By the consumers. ethanol California fact the Board’s more in ethanol California adoption EXX prices with increase slow XXXX EXX. for fuels Air petroleum-gasoline gasoline, $X Importantly, our cash in that currently renewable improve regulatory of and the the for in our security. flow we’re XX% XXXX directly the the Resources of enforces reduce which sells to to the revenues to limit. a less decarbonize high five-year in have rest renewed much record The than trends per gasoline, California to ethanol toward quarter fuels to of country as annual cost XX% state. positive costs California a fuels driven petroleum allows known cost interest mandate, by transportation, as commonly progress gasoline creates prices of expanding than the a use Aemetis energy of a With the California, the track plan. fourth and initiatives direct continued blend fuel drivers is and need a on of and decreasing XX%

blending by the We’re move with hopeful in getting pump, car with that XX% especially at consumers this squeezed ethanol California. prices requirement will year, forward high the

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

Fuels Aemetis ethanol the business. highlights of and Aemetis we’ll and Advanced Now natural businesses Andy Foster, renewable of President gas review the our Biogas Andy?

Andy Foster

Dairy sustainable business production intensity waste intensity, carbon received XXX facilities XXXX, since economy and two digesters. our for by of negative of is feed that CARB of Thanks, byproducts Aemetis a Natural been the to circular products we transportation September Eric. produce is that Gas bio first below-zero carbon negative, fuels. pathway carbon intensity Renewable using The from exemplifies renewable a our dairy creating stocks has XXXX in biogas RNG as fuel and producing

digesters supporting take deliver infrastructure build achieved the a California Let moment some to dairy key you that of we as the on market. to update and will milestones out network RNG our me

of the in are digesters the biogas we and In and the of utility dairy currently addition interconnection two unit. operation main have commissioning cleanup gas pipeline pipeline facility since XXXX, and completed September miles currently four construction to

additional and miles to currently We executed digesters install participation dairies also agreements lease digesters. pipeline. an XX now with XX and/or procuring constructing are biogas dairy or of have permitting, We equipment XX

We are in with more dairies. advanced a than dozen additional discussions

at the in upgrading are the to encroachment construction cleanup facility process these are XXXX. from digester nearly Stanislaus summer of who construction already about XX-mile project. dairies in USDA XX is be these of X% XXXX. million biogas nearing known An the permit of segment Aemetis for XX digesters the pipelines local of rate dairies Biogas million energy USDA biogas USDA parent biogas of the project way The receiving of right roads, now the $XX renewable completion in – for Five America of the completion been biogas additional before additional to the with the five to of pipeline public without and use biogas of the to the completed. participate County closing $XX million transport the The has like to dilution County equity entire of in guaranteed refinancing the has the digesters miles the and area from XXXX construction under granted of the shareholders. XX-mile in company we close credit pipeline for pipeline pipeline. under the As onsite and expected a Aemetis inquiries construction another over roads, is digesters with interest of other an XX expected HXS with additional of QX XXXX. in portion pipeline for enabled central loan pipeline, dairy REAP repaid Aemetis completion and was built, years. in $XX pressurized county facilities our would five XX-mile local XX% expected REAP are been biogas pressurization to About guaranteed program financing as of end the projects completed, segment Merced miles the construction

to Supervisor civil to extensive Central added Operations management biogas an people a XXXX, engineering construction several Construction recently and our XX team, experienced dairy digesters Dairy who Valley in project and we During managed experience. Senior biogas key Digester including Manager California with

plant for and for We’ve Phase turn Our $XX be extensive capture of diesel, compressed supervised agricultural involved Energy of the pounds production project produces feed, California RNG initiative produces XX consumed who year to synergies of the Aemetis the Trucks grains natural waste, feed. of government the about renewable about cows facility animal and the or has our Those from plant can at per at with fueled absorbs the throughout we in of and XXX,XXX date, create added locations and Electric, awarded Pipeline ethanol, by the Fuel, a maintenance been ethanol our that XX-year RNG past working dairies building grants operations dairy animal also renewable RNG. high-value atmosphere of production X has than the plant. our XX fueling who more To day million that many XX ethanol during sequestration growth, lead produced while ethanol X RNG gallons for million produces installation and is feedstock feed Pacific years. has we’re the Manager state at an the related about our supply fueling the also to businesses which Aviation carbon but plant, for contractor. Sustainable production project methane California operator other of Aemetis of California produces biogas local CDFA, biogas ethanol Gas site natural experience pipeline industry Construction our stations the uses Department Food and distiller’s million the The Agriculture, by the renewable gas. renewable veteran, at ethanol our Keyes plant COX wet Keyes working and that and The natural gas agencies from from which cows. per which Aemetis Commission, in and feed

distillers been traditionally per the X.X month corn of renewable as animal DCO, plant has million Keyes Additionally, oil, oil sold produces or feed. ethanol which – approximately pounds

biodiesel With to feedstock the renewable and valuable more aviation input explosive renewable a diesel, growth far fuels. DCO as commodity fuel has a become of sustainable

and our fact, and Aemetis, sell Eric we model. complimenting utilize that Riverbank refers producing the In biofuel of in to production diesel circular has first renewable further value us than in of the describing co-product it allowing tripled XXXX, to own at the since to other economy when our bio SAF it producers this started DCO plant, more eventually our business often

California at progress discuss our plant. Let’s ethanol

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

also Strong this cost of pricing we half corn supply to At increased spots pandemic Keyes of distillers trend same ethanol the have demand, and the and were combined and increased. high corn nearing ongoing to tight with overall and demand for distillers and the the logistical delivered restrictions about margins remain oil expect corn in prices highs. second in time, As issues increase to COVID relaxed railroad mix XXXX, time corn to ethanol product bushel bright $X the per favorable both wet all grains for a continue.

pounds steam from XX% hour. than per hour X,XXX when than stable of the plant we consumption compressed, per and by – ethanol dairies the is currently metric the is Keyes equivalent to projects and million Since natural operating in renewable which run lower year to a are pounds from ethanol. million tons moment upgraded, significantly generating expensive Mitsubishi to advantage day, and ethanol steam steam than by more ton few at a the increase completely year to capacity, Keyes milestones. fully Let per in X.X key the law. of has system the completed. metric has through XXX day water our steam expected operating from been corn more me The test in or dehydration mostly and tax record XX design the corn is pounds The increases COX processors with and operations use plant $XX under take the distillers of grains updates separates costs the with provide being dehydration for a biodiesel been in are exceeded deliveries at flow on The unit, production system distillers oil pounds the local plant across approximately ZEBREX this plant to steam sold produced Wet XX,XXX driven petroleum carbon-intensive, less per been non-edible based completed, prices has beverage projects diesel by about goal and that Keyes use ethanol per reduction gas, are oil ethanol of grain which installed, approximately full cash in taking reducing region. of of demonstrated or strong corn are out our production. is food fully pricing. credits $XX per million ethanol delivered being of delivered carbon current oil reduction delivers truckloads month $X.X at X Distillers Messer per million reduces per met revenues intensity distillers our

Additional with is zero power progressing generate The commissioning battery the contract of by otherwise with cost million MVR further is approximately to work carbon reduce is as currently solar the at The at intensity known underway mechanical The X.X grant a expect for megawatts plant. the completed. microgrid unit Energy moving commission Commission. designed fully petroleum operation of installation and solar supported steam of with from microgrid. is system the is to natural for EPC ZEBREX operational ethanol recompression a vapor the system we combined electric low year. during with to with the $X to solar and reduce quarter of ZEBREX use have project signed natural use the this and This engineering gas system. detailed backup $XX an This SunPower gas California is million expected significantly forward the to project almost petroleum second

than approximately of XXXX. in use for costs MVR Currently becomes eliminate year. natural We plant natural the system gas expect our $XX Keyes the operational million when are gas more per to XX%

gas increasing produced plant. we also per the while So million year the therefore Keyes the save of carbon value by cost reducing the to ethanol’s $X ethanol of expect more natural intensity, than

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

Eric McAfee

Thank you, Andy.

carbon Let’s project discuss renewable fuel and our sequestration with Riverbank, California. zero diesel carbon jet in

Aemetis site XXX acquisition production carbon to pleased milestones. Complex. the major City zero in This in and megawatt building negotiations site. of the and line near a zero of buildings line XX We’re a December $XXX,XXX as cars ongoing fuel electricity at year the the direct the Riverbank of intensity Aemetis existing XXX,XXX acre of production Industrial aviation more continues signed army, U.S. U.S. terms dam. investments biorefinery The In XXXX feet California hydroelectric laid achieve ammunition that But with in the Riverbank, connection about existing Riverbank power of XX on City a and Riverbank a square sustainable along per is Modesto the provide three XXX% of the the a years the rail lines, XXX with carbon with all renewable site, under-development eight Aemetis out our of former facility power a rail after the diesel receives agreement substation from with to plant renewable to for facility. lease revenue and tenants than at payment army

XX expect correction the sustainable actually then jet $X.X contracts American Airlines, the and project for We sequestration aviation lease to site airport. Aemetis billion total cost Riverbank have total announced for for site. Delta purchased including XX for at XX fuel San the plant remaining and under acres site years, parcel be the $X.X with to The million. for for operations of In will sales flight quarters, million, acre the Japan ownership during blended million, $X.X during Aemetis we a Airlines will to low Airlines, two be Francisco XXXX past XXXX about by a of of diesel about transfer $X.X of carbon and

Bay trucked Francisco to the will have delivered from SAF by plant Riverbank be in tank a $X agreements, agreements use of neat Under other airlines. more additional to during be contracts. than are to farm Airport pipeline sales San the for Area blending jet the for quarter. via production with SAF with sales been the for The billion next of memorandums blended the Francisco will San announced fuel. be expected Additional understanding signed airlines These

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

a to of to XX-year billion and for The addition per plant we under the forward contracts, XX diesel aviation renewable the sales million is a of sustainable In California $X.X billion jet gallons construction fuel contract sales renewable blended chain steadily. a sales major diesel locations. travel deliver with signed agreement its stop $X.X Northern moving year

is permits, planned We California, announced ideally the year. are time engineering CTCI of Bakersfield, diesel and the to has currently of in mid-XXXX. debt suited work this in the on begun with the in CTCI to CTCI global agreement. Aemetis EPC support completion phase plant that And construct and support the completion closing engineering currently for $X constructing is of billion late which financing, renewable the plant EPC that XXX-million a contractors gallon to plant plant on the budget. is We

Let’s Aemetis have three high sources by subsidiary, plants this and COX plant and University to a building return that capture refineries, Aemetis on comprise plants, identified oil of one the our in investment issued California. COX power facility from in Carbon cement sequestration plant largest California the carbon XXXX, was the new emission for California study the review Carbon in XX gas as in Capture that the natural compared potential sources Center ethanol Capture. In October Stanford

of $XX currently and transportable Baker central Hughes that familiar the located Aemetis X,XXX plant former We a the reuse. deep formation ocean that above worth strata formed basement million and does injection atmosphere. with compresses X,XXX in an known Our foot a the more expanded not vendor Class the as X return Capture salient Regulatory per for as operating layers ago. other a the plant well company about a strata to plant is team and of site valley. we founded are from plant managing the the development deep value COX the in Baker Carbon Central rock. formations the Messer of permitting Manager already known caprock, the period Between a of than countries. that COX the by ton captures COX as dioxide $XX Riverbank year site CCS opportunities The Hughes which Hughes into carbon XXX,XXX subsidiary in selected We about credits EPA foot per as jet Keyes the two study tons Over generate process. liquid of carbon regulatory metric company IRS well plant Aemetis about originally permanently determined And injected tax and year Baker mineral to prepared and long sequestration. carbon lead form in XXX the adding for was is the time, COX side diesel Mehagan a cited generate west with liquification ideal the as is project, the the years Stanford California, operations ethanol metric our process, salient reacts per from as as XX-Q as Current manage to the was XXX underground the Hopkins to credits. COX to $X.X permitting that market billion sequestered tax Compliance drilling Valley, and very by by Riverbank a inland related sequestration dioxide

X of we to and for Phase commercial plan industrial worked In our global addition projects, Capture Carbon to sites ethanol waste biogas, to permitting plant near and into jet plants XX up wells, from remediation. we California and for years Mehagan metric inject two Central managed biofuels which sequestration recently at drill the California. emissions Aemetis project, two year in In to Chevron’s experience Chevron of diesel XXX,XXX plan per our tons COX

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

the Riverbank for that the wells We of the the site engineering the in this expectation drill with quarter at characterization characterization first are in process currently permitting will and we an well year. two second

a to India in blended per becomes our that for with significant any tax India, which led into review now in business and is of each has tax. liter in biodiesel. X.XX than Last The was with in not major of tax diesel, pandemic of discussions billion regarding the payment from adopted a blended to effective in impact. need Let’s in biodiesel new petroleum significant diesel gallons oil billion October is COVID month, two India. is XXXX recovering rupee about will already new of gallons be refineries that XX more biodiesel India to year, supply order avoid consumed India

Biofuels California Policy. has tax. We than under the new the to prohibited National significantly biodiesel in continue has The India India to work which previously on prior price market, an approval to export India export biodiesel, government opening higher been been the

commissioned, biodiesel change We California. revenue of fully a and India and purchases delivery refinery renewable we subsidiary expect exports. local government COVID Riverbank are Since subside. debt well well transloading do and has increase rapid to oil and current truck facility manage crisis expand goals as meet continues is biodiesel positioned we and as large for in reheating air positioned the India no constructed of for in to Our product to is our biodiesel climate facing India quality

Headed to staff losses worked group. team California. of acres create the life, in process, our working Let’s with wood Vice the each Aemetis development ethanol focus impacts a and finish funded President brief joint in which wildfires become with causing the of continue Goutham other laboratory Aemetis Dr. development The policy government commercialization significant Millions in technology Minnesota in as property Technology innovation, waste from bioenergy of our California. funding. plant alternative of by technology and Vemuri, federally of and an year, Development, review to of the of a Institute at of keys in is Berkeley, adverse uses with climate change

patents. sugar patented this $XX obtained waste exclusive increased wood to with and the and our and protect generate carbon forests. a production created ethanol of use reduce of used cornstarch with million feed process, cost ethanol produce process the to unit production plant jet to value negative carbon DX we for the that RINs, extraction issued cellulosic Aemetis, riverbank from hold wood from by compared DX oils waste designed The patents of of sugars lower of development We negative plan. to work wood. stock orchard wood EBITDA the carbon is treatment extraction that hydro A our cellulosic sustainable which is the to extracting cellulosic the and in CX $X amount keys fuels. diesel was vegetable sugars significantly to corn from extract U.S. years the further led are the $XXX,XXX sugars three to waste other wood for feed technology the collaborative a to of aviation at diesel our wood waste the negative than sugars produce sugar By intensity expected the and funded ethanol. stocks. lab granted ethanol year from Commission sugars non-commercial corn non-converted to per be gas-fire for grant cost plan feed ethanol orchard from years California awarded to was technology two biomass awarded using instead for increased to in waste grant cash now and stock compared more Recently, low to hydrogen Every of produce licenses service from and For sugars feed and waste of expected wood, forest locally JBEI testing ethanol waste, to RINs extract about forced that cornstarch forest XX% lignin Energy by intensity million starch. to and from Aemetis The of remaining and is EBITDA sourced partially develop CX and stock

aviation these Aemetis waste and from projects, negative natural the renewable, a expanding sequestration. we renewable fuel, low is pre-extract, areas COX cellulosic local as from dairy, cellulosic and byproducts operations fuels. sugars diesel to facilities diesel bioeconomy summary, use operational. becomes are carbon synergistic ethanol In carbon We renewable, intensity, using create sugars intensity jet Aemetis diversified to expect plant carbon products feedstock commercial wood a and low and and of portfolio when wood waste circular Riverbank gas, negative projects which All renewable from our in waste produce within and and

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

from Now, let’s participants. our few take a call Kate? questions

Operator

the open questions. now from of gentlemen, our coming first question and is Credit And Thank you. today Instructions] men for Gupta Ladies [Operator floor Suisse. is at Manav

line live. is Your

begin. may You

Manav Gupta

was the we a So on year is with Aemetis story see with you. good, aren’t Eric, so year got people associating the American, airlines ago, ahead, it? Japanese you Now, if primarily some other why all pushback Delta collaborating

on thesis still think on push a kind on there’s stock that reasons, say that in negative this kicked and but And on say tries one. to of out. they $XX RNG go some might company that say there to by B, negative the get perpetuity projects two LCFS they’re not CARB, so So are many and is to stay help are are is a there out opinion. They people anything they There I still overhang Aemetis and gone who my probability CARB. do coming there in

to talk higher these CARB at other you versus some people. Now of officials

part CARB the being of probability is and So program. thinking help about of us LCFS the not LCFS understand prices how RNG

Eric McAfee

correct. the There seen has with deal and decrease to about strong standard, the have institutional wide reducing investors a credits. is You LCFS have expressed are roughly why strong in We response emissions carbon, had fuel low confirm price to at have staff to they about actually directly confusion we carbon XX% can CARB the a very not commitment a that of California. carbon concern commitment

study feed of intensity that of drive by As light. August, gallons January diesel, we a of announced very same lack is at be other was we the that diesel scheduled part CI credit brought renewable XXXX carbon and meantime, a cooking because and scores. process the of that’s intensity it through to financing current use next low currently renewable not interesting point criteria. largely the you carbon will is stocks been of demand federal a study low of oil LCFS know, the have a But adoption completed go roughly X And a in that billion the

higher, So score much is if CI the of generates, it’s much then the LCFS number lower.

it’s be projection And the and is the own actually to five-year of XX% reasonable, generated the our is unfortunately, of in basically so market too the the much at we plus market other the to by probable structurally Argus but any it which level, under than XX% what are at future LCFS will most year report the circumstance, maximum a amount their In lowest living renewable credit, projection Argus XXXX. $XXX less LCFS is as the credits expecting And our in diesel of LCFS words, $XXX that market that being could which concluded and be deficit. number is plan the cost index. that outcome running describe production a got had, per $XXX expecting

So that’s million plan that a sorry. to telling the they’re – too intend us CARB’s the $XX actual I’m they up $XXX outcome be surprised five-year telling what at will investors than to immediate gap CARB year occurring in at in to reacting surprised. model is expecting CARB less commitment they not minus The they’re Institutional They’re in looking we’re during XXXX by experts they market do. XXXX. information the is is field. the going the that’s far is when the it’s constantly, not from market $XXX, XXXX, from be will what think where to end is somewhat our expected And certainly what now decarbonization. And are

of at but members media social improved positive communities, would and would to benefits RNG, be almost importantly, Regarding more more weeks, natural in importantly jobs, postings support hard is renewable disadvantaged recently creating senior I the CARB public of local strong dairy of jobs two that last the staff levels environment. gas have just written on because say in say, than jobs

methane, local digesters disadvantaged emissions course, to for order and, reduce Our which been of harmful communities. significantly have capture

of we’ve a top as RNG result at that. so support staff CARB seen And strongly

staff know, RNG we CARB and dairy to do So Board see January health in exclude you and denied the understands decarbonization petition that LCFS, RNG. environmental the as significant benefits the from a the of dairy

Manav Gupta

X follow-up. Eric, Yes. just I had quick

in you it? a who there. peers a in little And your Can RNG Eric. be bit even And excited think changer? could engine. that of if about about it so I’ll you you are Some XX-liter CNG very and game talk Thank this Cummins are also leave much

Eric McAfee

at the is with much, Conference you Thank is Energy engine so Colorado. gas a cargo week Cummins I thank because the trucking you throughout and natural widely to truck bringing changer that’s you game Manav, adopted in Vail’s – a an or Vail RNG engine one, heavy oil opportunity of opportunity lowering fuel say, should diesel or for two very The does reduce our this the be increase Cummins XX-liter so decarbonize the industry, long-haul a for contributor to last of version a light the large lowest that is the which prices. fuel to for dairy fuel for in Number engine to carbon-intensity also, is a costs trucking, market, $XXX cost. things. but substantially demand world’s RNG, great operators crude is frankly, and the and long-haul RNG

Manav Gupta

taking you for questions. Thank my

Eric McAfee

Thank you.

Operator

Wainwright. Amit Our Dayal question next today is H.C. at coming from

is Your live. line

may You begin.

Amit Dayal

deployments on us begin contributions you afternoon against with, dairy that in Eric, and from online Good the we everyone. any are revenue those you. update probably about deployments, give should think to digesters . how could of for Thank guys? just expectations terms you RNG

Eric McAfee

lay is year. define our on it’s different on one number plan, the five-year out rows, road homepage, two of capacity. the digesters our website we On per We of the

is actually number the there’s pathway being then construction, on California the MMBTUs which as of we is of And the CARB we e why delivered, State the drives of revenue. there approval what have an reason complete Group. gap other a process The with

we that investors those capacity felt it’s place, was approvals had so have completed, it revenue that generation occurred. we can’t until we start insight important have actual And in

we and five-year in So that our slight delay there’s a disclosed there, plan.

and sixth And We are we on spring to currently, to we’re of be year I things, – XX in our the bit nice some a have the but think slower middle track. great in and year other and construction. during go the winter should tends we’ll frankly, dairy now see summer. to due weather little digesters scheduled to acceleration a

with five-year that to so our plan. expect us And on I track see to continuing we’re just be

Amit Dayal

all any CapEx for it you to XXXX presentation, are from be? color all this respect needs of with like sort you looks what these the need the are already to those going some whether make us guys? needs investments. needs And Okay. on Could you to into funding you give in just And of have for your your place going year,

Eric McAfee

significant our use the of the its the company, What for as equity we’ve source do has structured of subsidiaries. company to value which to is the assets parent existing

that and that the mentioned things we bucket. week units a sequestration is initial subsidiary, development the in compression, unit we’re in so subsidiaries vapor credit subsidiary, our facility other is is $XXX here working by the of announced ZEBREX doing or e the of Separately last reduction actually availability each has Andy, mechanical a and million of the calculations of broken on million have And Jet paid So carbon solar also financing that, but project $XX the funding into for the credit capital. of it, our from company. parent those we but the carbon subsidiary, $XX facility diesel million it’s activities

sort do development, course of to could that course. it of be So the used for of we things any need in

another that total set which of equity project that is $XX – this fully of activities fund really we provide only up down and million we much already when $X million We in We’ll have the roughly jet investment to to the a couple capital facility of subsidiaries, pretty those such are diesel. of million it’s put and all financing, year. credit get $XXX So them, there. development

and financings. diesel project project. which $XX about half EPA are then and a all doing equity do our fund And X the development But some our credit financings, be We’ll in million funded project. smaller of So will jet $XXX work million in the fully have a we’ll line. project so, we’ll from common or our is that licenses, financing, which Class about and year

really sequestration carbon XX our we’re months So funded on for business.

it pretty the here wrapping largely money the and the months. lines the So one much XX up been for in between grants million plant those of were credit projects, all $XX.X needs Keyes except that next we’ve all the has awarded

or by a just we’re equity half carbon one funded and jet then project these sequestration, And do these for and in require of so do items, we then year we’re the financing and all company. any parent investment and And done. financing so, just project basically, on on fully miscellaneous none on fuel,

these to able facilities fund credit use to We’re projects. our

Amit Dayal

you. Thank

that what Just or one is utilization operating be Difficulty]. end at at of the clarify where XXXX? levels the Could [Technical you now? do year by expect you India to in right maybe plant in year And the

Eric McAfee

biodiesel high but blending as But government per so because are scale India of three wintertime do a oil liter, when out comes new the We is mentioned, biodiesel India plant about it’s per months two quarters. very, and that ramping in of that’s XXXX October the in a gallon, over companies, occurring again, tax operate, an Our tax India. it’s adoption in in feedstock the significant costs, there’s the opportunity up marketing little a is existing and X.XXXX winter, typically up government gallon play. this India in the big tax next don’t per have bit India, two plants cold. is for driver that driving this liters of very in INRX is rapid I

the India India. this specifically So, the is in applies desire we’re though to because refiners extremely high, in refineries avoid government it tax with private their all dealing to even

approval fast to export And expect we over up be to the if two getting California, quarters. we’ll process get an it we next scale export that to as can possible. So, as

one last that expansion very very, one and of California in to domestically in we So really the exciting two India, opportunities in have couple all appeared India, months.

So, that we’re to occur ramp-up year. looking see this

Amit Dayal

Eric. you, have. That’s I all Thank

Operator

you. Thank

Stifel. coming Nate Our from today is next Pendleton at question

is live. Your line

begin. may Your

Nate Pendleton

Good morning all for my and question. taking thanks

using could at question, costs tallow potential compared first to your the in my vegetable of CI difference in oil? plant, use in Riverbank the a from For you, regarding India speak level, potential to high

Eric McAfee

crude The acquire a we that tallow product. India is

So not acquire recently biofuel in it announced we We the which at refining that actually we’re is it. program. point crude a feedstock building a

that of plant a out comes feedstock. biofuels is what that now So,

we take our essentially into And product. So, is at feedstock a nonviable a and use biodiesel turning what plant. we can that product in India

export largest California specifically tallow, the California, of users plant. to States of of need biodiesel which tallow business and one we can the And to already the also in our are United our in in We in because course, India. is India of allowed

converting So can the taking this be and product our odor waste literally core clean really it of no activity a operational feedstock or in that into India for fuels low is used renewable production.

to more buy differential. even vegetable animal – expensive less a product in and oil or of today differential, a more refined cost XX% crude is cost today, than that It is oil stock. than it that to So than there feed XX% potentially buy is it’s meaningful terms

Nate Pendleton

involved progressing Thanks. move third logistics my question, could Thank Also, to potential you. are your comment conversations party provide you CCS on you how And third regarding could Great. an business, on volumes? for update party regarding those volumes? the COX second

Eric McAfee

every bay to spoken area have We California-San Francisco oil refiner.

two reformer [indiscernible] It all gas, if and in are we having on just source methane go oil terms XXX frankly concentrated and per discussions We major from of those several roughly miles two One that the third located steam negotiations if X solid produces included of oil sources. a with the would But hydrogen, the actively comprise we probably are actual our refinery. year include refiners. we of with is we tons of could metric million COX they’re SMR very refiners a with facility. very it’s there’s

of we’re diesel. Gas, course, producer a can intensity carbon approach Dairy seeking instead our a of So low be as negative RNG trucks is fuel Renewable very Natural emission, as very, that have to

the oil carbon so to tool of lowest And vehicular COX up in probably actually transport. is transportation terms roughly at miles available driving pick XXX refineries

about well XXX XXX per we the carbon of kind a minutes five a trucks well, two positioned we’re being And One We wells that’s truck an to low a uniquely to see big divided five emission, math do just hours we ourselves much. just and so doing provide only hour. are the and XX trucks roughly deal. positioned low cost, by have XX hour not not is every so an is trucks trucks

which pressure, It’s in that which to even out get seeing COX significant building and as or because our high how COX could that is enormous – or very worse. railing, that evaporates difficult actually of we’re see California because litigation is problematic course a alternative permitted is value system of So the barging, of a constructing situation pipeline.

XX% day. You rail in of car. lose every about COX sits It a your

by $XXX $XXX a and $XXX two car earnings days a easily million. reduce million business, in rail by So million revenues in reduce can

be we’re think term So positioned think And same our to oil refiner business. to to very would we partners add guess I a it well value that big the way. I See use.

unique proposition a value there. have We

Nate Pendleton

Thanks for your quarter. strong the time congrats on and

Eric McAfee

so Thank you much.

Operator

Thank you.

next at Blair Pickering, is Our Matthew Tudor, today Holt. question coming from

is law live. You’re

You may begin.

Matthew Blair

afternoon, and good Congrats Eric Hey Todd. the on quarter.

RNG Dairy your think the been side I on pretty progress impressive. has

you with and contracts you or And you signed what win are outside the hearing these XX talk your that think mentioned we’re any you XX the Have Could XX additional signed the about competitive helping you I about factors dairies. grains to? that could is pretty you supply that agreements a distillers market that market? outside also opportunity dairies with dairies that existing then of network? talk of currently you wet contracts

Eric McAfee

Andy, you to want this. take

Andy Foster

for the question. Thanks Sure.

at this that in lot other in come there the time early and to marketplace. Energy since I developers works couple a a meta since XXXX that correct were CalBio the and think business really We’ve party you’re time. to a it MOS that been competitive is have – significant more and addition

I that multiple are fact in if releases participation we tremendously has helped will. with are neighborhood us have the located of think discussions the we terms parties things agreements ongoing poor. that The the securing one the of dairy is in you

ethanol We plant we’ve for long Keyes operating been plant have XXXX. the operating a for since history the at

some or outlook come currently distillers grains are who we those of that obviously are. and to know customers And the with party knowledge we our so

about that into with it, I quick. starting has think of the helped and So that and one is busy one of Eric let’s execute let’s get it this us, was talked and real, and the other we things business, this think upon getting foundation when building I when that

demonstrate to marketplace. are move Let’s how the serious in we

some dairies Some delivered of the said a get with and had year, two We fits they’ve them score the build a developers get other to were we commission in and going starts marketplace. of miles year in right got how did of that’s we the CI operating, think that, with We I space a helped We dairymen. perspective We all pipeline it. us stayed a and in built. from of track. literally lot a credibility on did the, four them,

you’re just a all say that construction, to additionally of and more goes those see things various and XX highly people a had most you any long of of come going time it on of If pass are cynical a particular, to you than schemes them presentation. I and never sell lots a they’ve spend sudden And our see dairymen mile then when they come as people a way. of think deliver, farmers to around They deliver built, is try being because becomes in that through interesting realize and evidence group this people when PowerPoint things pipeline happening. they when you

The and dairies outside sense pipelines some go them last that that. we to for necessarily But route our low there And that a more not include first the like tenants, phone our of that part are we we smaller there we’re of pipeline you back question, calls we plan. talked yet? things maybe that areas for from our start we’re hey, are are in folks secure your or to me because trying There remote footprint you anchor don’t are in will if California of there’s because to so folks when that’s why incoming getting strategic haven’t And saying, are them the – some parts to are will. that exploring participation. – dairies on make geographic getting

to to to for So at some into we’re up interconnection because the more or there’s ways or remote that either and those using mix up different for talking add gas – using even folks hub to gas get transporting that that a electricity to the setting gas we’re through it looking a of site. there clean

talking really, year a focus but primarily So of dairyman. lot get that time or Macias, to the next we’re trying our I time same geographic, the VP in who’s bed, and so this to of Biogas on to the are car our put spending prospective neighborhood and our in Robbie at

Eric McAfee

should RNG contracts I with on customers. mention the

the actually number RNG We’re one initial customer.

We distiller’s that trucks carry putting be supplied and things have can that grain that our of up the other variety facility. from station we’re at and RNG ethanol,

in or here so to we being have marketplace, the expect And month addition we a in a which customer, in customers other to the announce two. medic next

what did start ethanol So it to see other of used like we plan. and when pop in we some you’ll sort launched we’re our own our up, but we Biogas names customer initially

Matthew Blair

the I your and all the RNG want for follow-up XXXX. on color. also Thanks volumes to guidance Great. Dairy for

in providing $XX.X it looks So the MMBtu million thanks like for was fourth the quarterly number, quarter.

eight $XX I million. get I is million, And XX.X XXXX for around, adding annualize, I if run your guidance to you’re digesters. though even then so And its think

the So guidance for your you run or sure that through bridge on, something RNG QX not but us volumes? could if I’m on rate the here, XXXX versus just walk I’m missing

Eric McAfee

we gave on Vail, suite Colorado also actual week. capacity and down year. matters; slide production energy production a actually breaks year, in simplify slide the The and per credit XXth February at deliver that breaks down the I which And last have conference for presentation

you’re are resources has if California production that approval of production the board referring the so numbers built to, delay delivered those number into number. that pathway the And

gap that month. If revenue a where runs next and we putting into delay our getting this month be that So we the in see DX bit place. pipeline we regulatory a is available, have we’re and of would that’s everything unfortunately in approval initially you next were generating gas but as we’re

plans, of And X revenue at line digester the presentation aemetis.com. then RNG it’s homepage So Slide RNG capacity. expansion company the on is is the of production. It’s the and we of the title have the bottom aemetis

XXX,XXX MMBtu what year that revenue. per that at So our only actual larger whereas you’ll our capacity XX. By exiting this is drives number But production notice actual year. production’s is significantly

actual with So into go XXXX production a happening. large you very

into speaking. it underground storage putting We’re months. conservatively as for could It as be much nine

But out two to next of RINs production into put it when DX LCFS store comes and of We’re to projecting able in when we and be it are starting credits and month then it we federal not that we’re the situation. ground also out quarter the generate pathway, we projecting have kind ground pull or the storage. the of

Matthew Blair

And of Is annual Eric, that average for XXXX. that the year-end are exit the an are numbers of like dairy shows year - on or presentation, they XX kind so digesters run Slide X it for rates? these

Eric McAfee

or a construction are Those exit being completed there’s year-end of digesters numbers. in couple little bit construction And there’s filled. – a that’ll under be

service the in number digesters a XX you there. number as so at the and put be to So but it it X.X year, takes really fill was a – as other or the There’s take digester, in fill we end of it capacity gap is the a it filling as a months a XX things. doing up. We’ll

you’ll drives So of see concerned the capacity this slide on number that XX numbers. our production

correlate. numbers we’d that I or two. But would those expect exceed all So one probably by

Matthew Blair

Thank Great. much. so you

Eric McAfee

you Matthew. thank Yes,

Operator

Thank you.

question Levy Jordan today is next Truist. at from coming Our

live. now is line Your

begin. You may

Jordan Levy

Thanks for all the details.

Just me. for one

of of wells your drilled, back huge that’s and coming the get lot just larger taking a general drilled and Is a step on potential there of to up kind side that after a then curious that obviously side thoughts characterization potential gave Maybe even after well more injection I’m detail just see you us maybe first first on? business, forth said that back an getting that growth? have of there. good you two to just CCS these even path for a And on which things. so things. that to wells, you business so maybe little Going beyond for

Eric McAfee

Thank Jordan. you, Certainly.

money, well million. of first characterization all. $X Let’s is permitting talk about about related and Each

under Riverbank plant our XX at ethanol doing our They’re we’re site, and one side. near one about doing away. miles We’re

that the same site to Riverbank zoned year, because expecting already Riverbank this same the of it sites is it’s everybody at cetera. people, So same this Keyes doing closer we’re plant be just et QX crews, correctly, QX twice year. the delays, of permitting

two site cycle, year, XXXX, we’re licenses an consultants that nine and literally just So million about up about $XX a of within plus for puts for There Dakota of Class $X approved approved there. in million. next million else a and million rig in both month sites. and or end Add of XXXX. everything us another rolling $X in was X lawyers the at out drilling ongoing XX-month $X of the South with end is over That potentially combination months

think, I certainly months, XX projecting reasonable a projection. So is

private bonds, project in California of At build end with by XXXX, another And America $XX need $XX But a we municipal capital, have attractive we two we capture estate line of point attractive financing. in are $XX if then about there. some program opportunity total investment. carbon already our So that. that we’ll very million for of it certainly $XX us. that’s bonds activity we have about of All us. million for to million working off Renewable million tax-free the credit plus phases. acquisitions, in for get available Energy a real complete is time, this comes

the you about of hole actually XXX,XXX plant. ground, the only XX% above with to to of build Riverbank tons XXX,XXX plant the the in So ground in tons of and the the compression equipment Keyes order have handle

the investment the shoot match So we of our than is and unloading less out to there million aboveground, all total for have. whole the COX build all $XXX

We’re not really COX pipeline. building a

activities. compression equipment building We’re and just engineering basically just

which At in year we’d $XXX So positive flow. be XXXX. be point tranche or would approximately point a million a little generating we’ll million technically funding, we that the actually, easy And borrow revenue, borrow tons, And next $XX with to in investment to it’s generating approximately the of expansion have, at XXX,XXX able it’s cash pretty do be of XXX,XXX in that go time, funding equity time, than the phase. to tons. XXX,XXX that more injecting

project, you and and equity see we the funding. X access year about credit $XX is in their X million our first as will total partners, rollout, tons, oil layer refineries end potential as something, funding year what flu see that then and a plan most So do a that and in in we be million that five lines, bigger of the and place over entire And gas. acts up with between is equity over up and put for under all a COX being smaller trucking X.X tons from the start generates ends the we $XXX million year, we just the metric million refining million $XXX Chevron from million, just tons SMR our alone with the

year. we So You’ve that put no compression reason well build the one just to got there’s two already and we’ll start the right? building in just tons trucking wells equipment built, in per with it’s you’ve got be well that anyway because above just million

fully So tons We’ll our revenue the plan, in XX% all capacity actual that wells we’re metric not from to there, frame. we in the only five-year just in – the actually substantial There’s these XXX,XXX potential are projecting XXXX the revenues is going but revenue have of two are a all increase CapEx all time potential. showing X.X but million. about

in And bit a very kick more electricity. it’s scale so little are operating RNG gas operating revenue up. terms two then And trucking in. a of trucks there’s that significant the costs costs, with Those and

if revenue up it’s even put that numbers here. we late, million So numbers a delays range. in of model. the retained we lot would these offset to it’s years the in we mostly, any If ourselves is in potential two substantially achieve still if we late, another somewhere they’re upside EPA obviously even EPA time, because $XXX can we year the the increase then to order on achieve And could

Jordan Levy

quarter. Nice guys. much right. so That’s Thanks

Eric McAfee

Thanks.

Operator

at is next Ascendiant coming question Our today Ed from Woo Capital.

live. is line Your

You begin. may

Ed Woo

affect was it’s California? there’s What’s lot in gasoline prices obviously, just with ore the market on how I curious, and oil. your to ethanol Yes. outlook volatility going oil of a and

Eric McAfee

in worldwide My view prices. sort of uncertainty is that a we’re under oil of case

Ukraine. Arabians a Brent, Texas increase happening with what’s essentially we age it is we have They for awards personal free under $XX are West today And because the housing, $XX that what have Brent England, Saudi that crude alone, Brent were run how think to of in free I of Brent price, on economy can’t the education that’s you for wealth that Saudi betting is pay transition. unemployed. in XX% takes $XX traders to saw view much they’re in And so is the trying the Intermediate for as a country $XX course, are the a And oil. XX basically of My West of fundamental Texas Intermediate, Arabia people that and state.

view. So the $XXX, I economy. an I think is fact my structurally we’re That’s global $XX temporary. think, And it’s relatively

oil as I $XX XX sustain were probably we to for range, think months as we a Ukraine in there’s Russian resolved, ago long that going double what time. which So was gets have we prices long are is that $XX the that, high and quite problem. and a When gas probably about

Ed Woo

to do ethanol think going up prices? that’s keep And you

Eric McAfee

and old to of that more Ethanol having cleaner creation committed solution. discounted well more running XX% and society gasoline ethanol engines and regular job committed we are ethanol that. did discount significantly ethanol the cars more ethanol. fuels. we regular how about found price becomes Nebraska as and costs a provided ethanol as discount more that, is get other from all continued to benefits lower-cost the that just XX% with in a become biofuels to prices, a and playing And all lower is old a be you as every study have And using better actually of at frankly, five-year below of emissions domestic

there. So we’re matter we how it’s and just I think XX%, headed towards a get fast of

Ed Woo

Great. guys luck. good wish Thanks you and a

Eric McAfee

so Thank Ed. you much,

Operator

Thank you.

Marco from Stonegate Our Rodriguez Partners. today question Capital is coming at final

live. is line Your

You may begin.

Marco Rodriguez

questions. Good of already questions have afternoon everybody. been my Thank for you Most answered. and the taking asked

a real question. quick modeling Just

Thanks. in guys you are kind fiscal about XXXX? gross thinking of wondering the Just cadence margin how of

Eric McAfee

in We a less uncertainty, at are of about pay pattern our what you sold California. $X gallon than a by which in pump the ethanol company is

little pump. price we take the the a below plus you $X.XX of about If actually sell taxes, you’re

year, at selling when year a per do and of that oil less per industry. million molecule of gallons a subsidy about we commodity essentially the So that’s the market, $XXX XX-plus $X gallon than million you’re of

now. at So I sustainable we’re industry subsidizing right oil very, think not very good gap. a the that’s do

all ethanol are standard price the want renewable have likewise pump. a is Ethanol to of unlike federal opportunity X petroleum at of have sorry, consumers. policymakers level, to I ethanol in not on roughly think the shortage. going the gasoline, significant fuel California storage of in and which a billion the some have tap to which to is the to of shortage – in in is shortage. impact pretty an into currently U.S., do gallons have is that in you the is blend, I’m And discount the direct has enforcement not a XX% Hopefully, you the available

pump well policy the opportunity federal and is by this renewable in decrease supporting general. as as an at immediate state fuels so both And ethanol to the price

Marco Rodriguez

your Appreciate you. Thank it. Got time.

Eric McAfee

Marco. you, Thank

Operator

to remarks. no I’d further have to this We for turn like back questions management time. now queue it in closing at

Eric McAfee

– website. presentation the and meta that’s homepage the on the to others Thank Aemetis this Aemetis Thank and you, at today. Aemetis presentation investor Kate. review review please you company joining shareholders, us analysts for We the posted

you opportunities our also forward We look as with talking in to facilities Aemetis. to at participate touring or invite we growth even the you

Todd Waltz

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

Operator

today’s Thank you, This does and event. conclude gentlemen. ladies

may time, have your at day. you wonderful a your participation. We this You lines for disconnect and thank

Aemetis (AMTX) 11 Mar 222021 Q4 Earnings call transcript