- Earnings call transcript Q2 2022

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Operator

Welcome to the Aemetis Second Quarter 2022 Earnings Review Conference Call. At this time, all participants are in a listen-only. 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 you to your host, Mr. President Financial Vice Inc. of Executive Waltz, and Officer Chief Aemetis, Todd Mr. you begin. Waltz, may

Todd Waltz

Kelly. Aemetis Thank earnings to Welcome you, the call. review second conference XXXX quarter

Joining our of release, Aemetis McAfee, Fuels conference and earnings releases is of calls. call 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 for press the review website Founder, today 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 Securities Commission available the Company's

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

results during I'd second quarter the second quarter compared financial of to the review XXXX. XX% to million Revenue the XXXX of for quarter to second for million Now XXXX. of increased like $XX.X the $XX.X

loss in experienced second Gross bushel impacted steady increase million operation of Ethanol $X.XX quarter XXXX gross performance profit in ethanol volume average the of California. quarter to of to XXXX, supply the of XXXX. quarter both the as California $X.XX an corn second quarter of second for $XXX,XXX gallon increased poor the to price per bushel Our price quarter of gallon and significantly of corn during from the XXXX. XXXX the second with during per the XXXX sales was into continued from the Delivery $X.XX during an $XX.XX selling railroad second second per cost of in delivery compared per quarter of price $X.X

substantially second preferred other Interest with $X.X quarter expenses of the LLC periods. of our second all operating initiatives investments compared to A XXXX XXXX. of in of compared second consolidated of in to in Series second gross and loss was as accretion $X.X stock charges expense respectively profit the in units for million Operating Selling, second compared of of noncash of second accounted an segment for subsidiary million million the loss million, Aemetis carbon XXXX. for $X.X the quarter quarter connection both of result $X.X of were excluding was the our during the Ethanol million XXXX expenses during California XXXX in Biogas Our $X.X quarter to and during compensation. during million administrative the a and XXXX reported $X.X general loss quarter ultra-low quarter

LLC quarter settled XXXX. second The of for Additionally, of EdenIQ during litigation the XXXX $X.X other including on $X.X XXXX of during during for subsidiary million of compared second to our second quarter the Aemetis payments $X.X recognized preferred accretion connection $X.X Biogas its litigation costs, reserves. the was litigation allowing and stock with expenses preference release of the million, of million in quarter million

XXXX. Producer of was $XX.X million at XXXX, million to low-carbon was of of of close XXXX XXXX. the million quarter Additionally, for Investments were further for projects our second the loss of million compared projects. $X.X was the This of quarter fourth United $XXX,XXX of Cash capital second in million to of of quarter Department the commitment quarter received second quarter second Biofuel made $XX.X of compared end $X.X the a loss XXXX to from of the XXXX. of our grant during a ultra the at the second $XX.X of Program. review States Agriculture build quarter Net highlighting net completes the

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

Eric McAfee

Aemetis producing negative intensity products, carbon is zero on carbon focusing intensity aviation and with renewable sequestration. gas including carbon Thanks, below fuel renewable natural Todd.

billion while energy favorable supply operating of for of as materials early revenues by and state Our and by and sources XXXX. more million In federal maximize EBITDA waste to we projected grow to $XXX announced feedstocks production $X.X the about carbon fuels. increase costs to an updated programs, five-year year projects than reducing XXXX, and which the using to hydrogen feedstock, annual renewable value plan, reduction

further improve if almost plan. be and, If legislation becomes that expected business provide significantly federal every our legislation aspect We the we updates. law, are will to would five-year passed, of our supports strongly monitoring

million interest past Third $XXX the has X.X of In expanded rate reduce credit and U.S. addition more plan rate lender, loans long-term rate million Our fund rates year, repaid plant financing the development to the the the our availability is growth to of of two low reduction facilities The financing using this we the is certain lines interest than jet/diesel the interest from criteria. prior fund carbon lower aggregate same line up of from XX% in will years, with Capital, the lower in track credit which project to subject We're the to working access were with low to long-term approximately sequestration $XXX closed recently capital guaranteed to We to to by at senior secured The is rate that have completion signed liquidity also to million ongoing growth March using Department of and carbon an government rate of U.S. Agriculture. plant funding. reduction XX-year for interest on credit project loans. credit $XX for wells. have projects provide at bridge Keyes interest Eye operations. the line higher interest provide intended who to X% two of of COX funding and ethanol designed financing

including $XXX closing known credits for Investment of funding by the plan required Fuel this that Our Renewable EPA million LCFS positive number Carbon was regulatory trends by the America biogas in subsidiary improve, the funding as have our Air and the increases the National now million Energy of or release more of approval Resources Standard of first USDA for $XX is Board expected the process approved the month. significantly for The Committee the XX% USDA and an scoping last for recent under EXX fuels California continued renewable of Low to Program. year-round ethanol XXXX week

the meet LCFS $X.XX the year received one of the traders for Riverbank, a of support the more operation in $X.XX that credits per of CARB. XX% of week, the dollar We following significantly White renewable required on increase bill fuel the per about to renewable production key a expanded sustainable the diesel year projects, fuel Renewable be potential sustainable Better diesel set per the brief summary assuming expect Last number credit. Back a January plant and expected SAF the Aemetis order continue is aviation Carbon final, of legislation as and provisions pleasantly million-gallon the proposed California, million in fuel. and goals fast not credit legislation that sustainable is to track allocation. and is tax surprised tax that gallon hear aviation to now support LCFS a the the a to result House, and aviation forth learn XX could diesel credit Aemetis tax to allocation $XX direct Zero XX% congressional the Build investors The receive blenders approval. credit the benefits starting construction were decarbonization to news production up in for on and includes prices to to in will the energy provisions leaders will by Though XXXX impact Aemetis

result makes tax by project. investments. by Also, renewable million project in ton The COX, tax XX% Aemetis natural equity tax next credit than the the million $XX more dairy natural credit paying investment process of from projects refund $XX companies long-term easier financing investment project, tax by reducing the expected investment a sequestration credits. a ITC debt renewable credit digester the interest capital over the for into project per received be costs million from as an to to than $XX Pay. five cash of in in of IRS called an life gas This and the Aemetis cash additional more by in to Next, of amount will years reducing $XX $XX for cash gas is much XX carbon Biogas increase the which metric in Direct but

feet wells. be seven formation the two $XX million a million With for the a IRS to California developing per ton the the COX at metric billion tax X $XX to credit are biofuels achieved so credit sequestration X,XXX two ton support $XXX including credit $XXX are and injection per paid carbon five GREET IRS projects. saline million correctly. of important repay the carbon as first a valuable and sites growth Aemetis years tax the biofuels adopting each million increase the prices Aemetis the providing the Several years the the year of of of in ethanol value security. businesses. by in a per tax We to capital just initiatives reduce ethanol of intensity valued x renewed cost infrastructure provisions intensity XX% tons million $XXX of the first profitability carbon X ethanol and years equals petroleum two project, as into of per at total in year about and driven COX blends, model, the thereafter the sequester by to of of be costs that fuels In each business, plant fueling milestones potentially could would low $X are to to operating These quarter the located of the is interest another legislation wells cash billion, operations tons in need decarbonize for metric XX% for costs energy revenue underground. funding the $X.X transportation, in calculated Aemetis year sustained Aemetis toward to our of regulations second and of XXXX, XX ethanol

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

Andy Foster

progressed pipeline Eric. Biogas of this for track XX-mile project in has year. XX biogas natural the on construction The miles with later than of is of Thanks, more gas the Aemetis completion completion renewable and California

four upgrading construction scheduled well completion quarter and of that we've testing facility is million Additionally, dairy biogas-to-RNG underway. the and dairy are construction for completed $XX centralized this additional of digesters

that the of Importantly, RNG and this inject will product of quarter, for PG&E MMBtus have completed valued seven have to we plan end sales the pathway beginning receive RNG the RNG would adopted, into into to the presently their takes generation, the for increased provide LCFS undervalued pipeline later CARB we revised which month. testing digesters We $XX to and we by injecting revenues for generating Since unit, to initially credit next LCFS connected interconnection XXX,XXX early more nine occurred we have utility six approved as the of credits potentially ongoing LCFS market of approximately months. than until to By that per RNG be biogas about are targets million this to waits been year pipeline. at which RNG successfully per plan approval begin dairy believe mechanical compared the year RNG operating this year underground revenues. of pipeline, month, will storing utility sales

digesters be the focus of central of to will as pipeline miles completion the fill the on well facility utility our pipeline, production RNG With more as of the biogas than construction connection and dairy the XX gas pipeline.

agreements many signed XX dairies leases dairies progress. have in have with or We participation and more

as items our chain XXXX. supply impact of compressors could dairy existing new continued takes challenges backlog project us year digesters for into schedules, such While

five-year awarded Aemetis we So the to biogas to the other related with project $XX California project government gas. be and To the Energy agencies and date, California biogas of Gas and expect and for the of Pacific Agriculture, million renewable Food Commission, on from plan. track grants production dairy has Department the the been Electric of

during earlier, mentioned of million Eric at funding our we biogas interest grants receive expect for the next expect the USDA was projects. few XX-year As for we approximately close for $XX $X rate month the and to Renewable months America under low first to debt USDA a Program. RNG the of a This Energy million project,

plant. Ethanol California our discuss briefly Let's

cost $XX as ethanol a XX% to prices, combined more energy issues, price increased whole. QX continues the increases, we Todd shadow rail corn performance with poor railroad with generated the to coupled a That sales bushel. from economy labor negative per inexcusable with on of of our As the corn Ongoing earlier, and QX carriers in said, industry XXXX. revenues issues delivered year-over-year higher cast to increase compared in XXXX and than major mentioned a

and distillers the that cost the wet resolve We possible. corn energy On strong a are offset the to note, corn this hopeful as favorable oil issue as distillers Board in increased demand of President's Emergency and positive quarter. grains ethanol, for and helped pricing will soon

electric upgraded electricity. motors our plant renewable including renewable and powered pumps solar California high-efficiency Our being sources, operate local to low carbon using intensity by and is zero or power Ethanol microgrid

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

completed. that moment expected been dehydration Mitsubishi has a to on materially take completed. test few to and installed been Keyes are cash the are ethanol The me the projects flow ZEBREX a when ethanol a increase Let updates provide plant projects has run unit

and We process unit additional upgrades. are currently installing a pretreatment specialized

megawatts solar per XX% have We plant to of is unit reduce expect consumption gas reduce this to approximately in steam this steam pounds significantly for use ZEBREX dehydration natural steam to hour. in XX,XXX the by month. ZEBREX generated designed fully expected This unit system. a operational natural reduction of vapor petroleum grant The zero ethanol ZEBREX the use, California intensity and ethanol reduce system is plant carbon approximately Mechanical about unit $XX electric we operation in reduce steam of detailed gas natural the completed and than million solar generate the the have intensity next power the of the petroleum further Keyes becomes Energy designed at natural Commission. is which is use from system, our cost cost plant. low $X X.X Currently, engineering of at recompression The bids. year. gas gas when expect operating and is $XX revenues nicely, and backup solar have costs signed our microgrid now is use will submitted project an for lower system, battery natural to with is for contractors with XX% increasing EPC decreasing a plant the we per progressing the million with our MVR Keyes by more year. gas supported microgrid through Total the ethanol. When by This phase and operational The initial contract installation the carbon million to

businesses gas plan. reducing Ethanol on on track carbon are our save we with and for and In summary, our So Aemetis operational five-year also Biogas intensity. Eric? expect ethanol the well milestones natural project to costs performance while plant

Eric McAfee

Andy. you, Thank

fuel one California. Riverbank, Let's discuss our project aviation diesel and renewable in Zero sustainable Carbon

loop Zero Carbon power In our took major operational XXX-acre continues development achieve space the a are pleased direct manufacturing as site of Riverbank U.S. that with milestones. Modesto XXXX, of negotiations XXX% renewable a rail production signed under portion biorefinery near of former to and Complex is Riverbank line the Army Complex. fuel of at XXX-acre aviation a substation Riverbank of Aemetis intensity In and Army, space, and the years on square hydroelectric with diesel Aemetis dam. renewable connection this the sequestration ammunition zero storage power U.S. in COX XX-megawatt the Riverbank for carbon year, Riverbank existing of with three XXX site, of QX railcars acquisition December Industrial This facility XXX,XXX electricity sustainable after with We the Industrial City a feet control the well plant Aemetis for well as construction our project. to the

other Delta and signed intent, for We aviation per sales we will Francisco the produced Riverbank more blending neat trucked than XX of with million pipeline contracts of use letters Along gallons then be The with American SAF the Qantas year from to $X.X have sales about Riverbank Airlines, be Bay Airlines, San by signed Under blended at to billion have with the fuel the for to sustainable plant airlines. Francisco and for Japan Airlines, airlines. production contracts agreements, of announced delivered the via will plant. SAF San be the Airport jet fuel. blended Area

In addition price year. aviation forward permitting of is in early next We and included that legislation agreement million renewable sales gallons billion locations. to sustainable travel with a sales per deliver completing the contract construction expand to major fuel $X.X Incentives competitive market airlines $X.X Northern California fuel signed engineering plant the fuel. federal the billion by we with year the sales pending aviation a look for XX for XX-year order diesel a fueling jet a in under chain contracts, allowing to to blended sustainable of its petroleum to begin

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

per capture which program. wells, our X ethanol plant XXQ $XX carbon carbon to In from pending currently about dioxide, the we California. in ton and year near captures sequestration compressed plan Aemetis into Aemetis strata University The biofuels year million metric reacts atmosphere. liquid Phase carbon COX generate ethanol long of known from an plant tons IRS study and plants from period basement the operations of that that Our formation two credits increase as the up located metric plant under plant tons known legislation. under layers which as caprock which COX permanently tax a about deep tax is that already transportable of mineral the project, ideal rock. credits liquefaction Hughes worth Between a sequestration. of Stanford is Keyes from emissions was we for sequestration into metric that as per the does sites in of carbon the a commissioned cited plan Messer time, XXX,XXX with That sequestered site per return a generated foot year, biogas, million about XXQ form per above to $X Current Over two $X reuse. the Riverbank COX could and Baker deep are a X,XXX strata to a two X,XXX-foot plant we and the indicated saline drill the by to saline XXX,XXX underground is not jet/diesel Aemetis to safe dioxide to year per inject COX our

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

refund process legislation COX provide We Riverbank well in for feature drill two per first currently the are the the pending metric site. an with we of ton expectation permitting would characterization as $XX of wells year. engineering the to Aemetis and a the cash A will each at characterization direct

mentioned at of tax per capture ton from Aemetis X carbon from Direct two of earlier, million $XXX the amount years million as project projected Standard Carbon credit The COX we estimated Low year ton Direct per a equipment. over of $XXX would million of As the $XXX year the project Pay support metric first Fuel five could the generate million wells $XXX Pay Federal by million an $XXX sequestered funding year cost as and per well the of provided in the the estimated capital funding fixed per California. the related injection

India. was our our is implemented review month, a companies, in that XXX India oil blend for Let's biodiesel biodiesel the the India in billion The of gallons government being of This on tendered X% XXXX three Biodiesel and updated National tender million offer from subsidiary of Biofuels was biodiesel OMCs. biodiesel by month equal business about Policy purchase per to year. to marketing bid where gallons X.XX a achieve about in is now per

the years, XX driven largely diesel formulas petroleum have by been past the For pricing prices.

tender plus reflecting the of actual The for For expected formula oil the for cost ongoing in OMC by sales be time, pricing was feedstock is biodiesel feedstock for India. marketing pricing to the formula the first the two produce tender, used the months the OMCs. companies the to timing a to and format

bioeconomy biodiesel began operations mechanism fully of and debt the revised purchasing basis. constructed full early commissioned, us and We levels expect We expect and tender ongoing million-gallon maintain rapid pricing allow to offer. produce per the plant on process plant XX strong for formula. the an Biodiesel this our fulfill a to successful will be the of OMC is India to at has our biodiesel subsidiary August the no year of believe Since production India due for growth India formula production in in the well of low-carbon are summary, delay. we positioned production In a portfolio zero and Gas, revenue ethanol Aemetis Dairy diesel Renewable carbon long a intensity expanding restart after Natural increase sequestration. carbon Aemetis, sustainable produce are rapid intensity electricity as All negative aviation a using byproducts renewable and diversified our these we as and fuel, biodiesel projects, waste in is and local use within and feedstocks circular products we COX negative which fuels. intensity low synergistic projects a facilities create areas to predictability in We to carbon from capacity to

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

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

Operator

first Your question from Credit with Instructions] coming Manav Suisse. Gupta [Operator is

Manav Gupta

So of question, letter in I Eric sent pace Randolph, letter, on the wants faster July he seems and the is the CARB Newsom that California. ask to XX Gavin to clearly decarbonization first to And this Liane looking a team, wanted have at Chair.

went XX% reduction for you're and everywhere. aviation comments price, calling I have fuel, a much the you where at LCFS mean, he's carbon the calculations, just think you And pretty I again. targets on higher where sustainable $XXX calling through again, like provided looking

raised that targets the out have your put in price are there together, seeing So you carbon will the and an be this will things else that letter LCFS opinion? impact, everything rebound when these optimistic you're and we will

Eric McAfee

to goals are they market set you have have as the that and they as tell they to I worked stretch talk beyond are achievable if realistic, that they communicate they that in staff, to hard being forth think asked that scoping CARB the you plan will even now goals. can those to

credits and very plan the between and view and current traders what a requirements the stated disclosures. of credit January there's XXXX the very CARB of other in current onward requirements LCFS gap significant and the so their And investors and clearly scoping

the just CARB so governor's I this. to seals think, committed And is that letter,

You that is by largely of Board governor. the may CARB the appointed know Directors of

not is is direct casual this governor. the instruction. commentary by a So This a

LCFS obligated credits not own to very think And deliver and so be them. I hazardous it's to

as will specific I an next the system traders we analyst cap So There And the on is be the say basis, at get does at that structurally the we'll in have the is of really XX the roughly regulatory to more the The it cap. six XXXX? $XXX. a in of about start as months, XX we living think information so index, over months is just question information wait completed and more that two increasingly legislation only to the activities numbers happen current quarter next up reports annual the set $XXX-plus cap. first cost the does price take see us come year? be for as in traders and is, that out actual months next Or quarter of traders first be

Manav Gupta

Eric. Perfect,

for spending the money you're that all putting the through, for comes get it because farm dairy diesel, whether Aemetis this does monetize in? $XX can can that The which which to means money thing if whether I it, mean us renewable The pace to second ITC. it's credit And Help the revisions, Help XX% disproportionately why this clearly understand of lot help you a also I how quickly is it. was focus you're getting you benefits ton. base how because guys, you, there Act. touch wanted was given it's you you're this just increases benefit, one cash really this you wanted is that Inflation Reduction which it for There how a was this that works. a basically works the development understand possibility this of us

Eric McAfee

you, Thank Manav.

$XXX all, of a about First million it's contribution of equity.

is project, million. of the the of is the $XXX easier. debt million available million, So decreases financing, capital financing debt currently to which profitability us we worth about interest X/X million on. course, executing it essentially project equity don't that $XX That by which which the to $XXX means much the providing and approximately about by by have of project of into of increases total of enter And payments new we're from It's $XX the our expenditure.

boon to tremendous have our our debt we less so but even expensive. equity, a now equity is And commitment, making already this

In terms revising be of we'll project, plan. pace five-year our of the the

indications next year. probably that do the are terms would today It's we're still on execute We us. times going be the of the those rapidly, passes We kind annual the plan, the reducing some more in to updated is for the this have five-year with next involved in being But to impact first do to it of could in issue actual certainly of if scheduled a the September to indications. positive by financing. frame first definitely some the think to this talked see would XXXX be lead interim -- think, the But indications. to in added impact quarter will debt able quarter being I plan about What what do be I time able year.

air legislation. in net the the benefits with in capture, happen acceleration methane and effect biogas of So quicker would quicker the this of is passage improvement quality California of all

Manav Gupta

I'll if last ready And but explained you there. those why how won't complete directly question, RNGs making dairy be Even many sir, by, which from? be able leave and year-end for year-end not connect of point, would be start you XXXX, and produce by this producing XXXX? the to a you're And at let's the would you to it sale farm say, how many credits,

Eric McAfee

Yes.

have from this construction quarter that we'll early of our And producing we'll in producing then going will fourth and But next storage, seven that process, be know we the into up storage. rapidly in the that you XX be as have are And we in year. of more inject actually. We be scaling year. seven process and fully to -- we'll five fully

Operator

question Securities. with next from Your Levy Jordan is Truist

Jordan Levy

milestones in near next we projects you'll here. term a towards just what the big on high-impact this on know anything we be going or stages. into going of Can pretty on? the briefly for lot Maybe the kind the Company different remainder big call each of the to of and have on over year it, year, trajectory touch medium of so you projects the maybe there's should if and, looking early First,

Eric McAfee

that and I from think leading will the a and really particular forward pipeline. digesters step of injecting construction, that Not into is a the year. positive five but order, us, flow because fully business to valuable going total be into is under any seven upgrading -- milestone RNG for injecting additional that to Major next XX major operating cash

of a and number only companies whole of characterization, position well $XXX if a about we of about leads that revenues a And one today, California. in capture the you are math new in that a see couple we us pathway to CCS, COX sequestration, to I -- sequestration, think on as the injection excellent the one year just just be talked of carbon million in Company. tremendous is

something to is So that for look well I think be would the characterization process.

also exchanger We've have at heat several We plant. upgrade. our completed our completion upgrades Keyes of ethanol

have this effort time money. a in being investment upgrade was and five-year completed ZEBREX of We That month. a

our be have get project well We compression. and will solar that year underway dairy completed then next and mechanical

a press we couple just permitting move releases you'll those see construction as on So of projects. through and

business. customers of off-takers, in set also airline have the We a

so to letters offtake of orders. a to there quarter we're I this year. next wrapping the couple into LOI, a about And all we're just year. more up which final of converting of first contracts And have done in up permitting agreements, wrapped of EPC [tentative] that but and that billion have signed talking we agreement, would kind further maybe couple intent Everybody should be it -- converted think on progress to $X.X already is in process. that'll of expect We be

then releases some I now. in that our It's lastly, India So right production mention plant And press should you'll begun pass. see as to operation. has progress, comes full

the months, as And another we expect over and to purchase to order here ongoing so next we'll months. orders ongoing purchase ship to October months. progress for come customers see out couple see we first two And of

new this they had than process purchasing rapid year So OMC before. at is more much a structures price time, fixed one the

months. Now feedstock it a happens every flexible contracting plus and mechanism, it's two

I you'll of operate more coming see business. out So as that news we think India

Jordan Levy

the of you're of CCS since Can talk that X towards looking how there and that side things Maybe kind and environment for just just you the briefly terms as permitting you thing? announced and sort a first well that of business of maybe evolved in what to regulatory Class follow-up.

Eric McAfee

federal Class order to In some X -- additional EPA in staff resources has the provides been legislation, some the process. well recent

level. as more support as lot as well than EPA gotten we drilling our we've state lot a And in top We have in the White been House federal the as supported executives by and, directly more project a well well frankly, both interest expected.

And tell what so arduous would are and doing attempt you, this they I to announced make EPA, enthusiastically would making move I subsidiary possible long say we initially opposite. with process the we've gotten a we're from supporting and a when smoothly. where expected the we every process quite

I'm I'm financially to further we work So talking expect the get Class to X staff talking here, that done. characterization well needs not process our happen support. And really

very with very, White support, the House. And starts and so we're that that with pleased

Operator

is question from Stifel. coming Derrick Whitfield next with Your

Derrick Whitfield

For question, result are less pricing weakness? I offer competitors as are More do competitive you RNG you through ask the weaker of guys of specifically, the wanted sensing if sense my LCFS could competition color a first dairy this period you to on environment? landscape. Or looking

Andy Foster

this Andy. is question. Good Derrick,

have we in I the to I primarily as others three some developers I business there's I know, They're have it investors. be think -- mean, say, case of off, think continues with here did two the seen in driving where been outside addition Aemetis. here. would you California, that largely And largely by been discussions. to still and that backing lots

but there some some has And other say going here there that around that's year. I from not think investment it's in groups isn't to been do poking outside parties. that Some on, were additional private pullback other last

Derrick Whitfield

the approved from your how question, begin understanding $XX Great. the then assumption if for million on noted comments? in or your on to week, is soon next IRA clarification what's you earlier receive you And prepared could funds Manav's

Eric McAfee

our a The refund. we returns get structure tax that then current and is file

So we have following planned at QX our of the would projections, that be year.

this And that up ends until five-year frame, CapEx we about the for over it wouldn't being next probably receive a span almost of [June] year, and so a you plan out refund time year. So QX happening $XXX million.

Derrick Whitfield

Terrific. any now steps for you required remaining between And guys lastly, and funding? regarding month REIT approval later financing, are when there receive this that are

Andy Foster

paperwork. -- It's just with ramping No process. just is up us more it's again. the -- paperwork our just it's of just approval Andy right now, lender. No, It's kind this

Operator

Amit Your Wainwright. next HC from question with Dayal is coming

Amit Dayal

the With restarted, line time respect et to there? the which could the India within cetera, what be plant over is operations,

Eric McAfee

in The so early are now. we August, plant was restarted in full right production

what During tests through we full seals of on our, and this replacing time advantage go and took and employees an plant to to opportunity equipment really spend doing for the be got upgrading COVID, is their time the [XX] opportunity operations. it, and of have ready

dollars restart than acquired delay switch of have give two-month to smooth. week. we've the authority us That and power on. are restart So this the the point production ahead well on full we are But the it's operational getting to to of of capacity feedstock was extra under only going other us us just an running took positioned power that telling this customers that, contract. Probably to was And from keep be at flowing the local onward. then billions back

some entire production execution. around a a is million gallons testing winter, technical laid minor million. we and out got million stuff demand Certainly, capacity get next into temperature XXX that. but we've and the issues X other plan for is And our month. gallons always a there's at for XXX managing months, So two The through month, about only we're as

lack over basically appetite of needs. meeting significant foreseeable So the can by you -- grow we the there future our business can in their see there's OMCs for of without a terms a

Amit Dayal

there of are there? this sort we restarting about as you should any costs additional the thinking of enter phase that start-up over -- the plant be So in

Eric McAfee

we if fully were for costs this waiting any a Yes, for We for is CapEx restarted or planned we're, onetime notable. plant anything, didn't and have the operating already, while. that this and

no unexpected there startup. was So

Amit Dayal

this And will XQ et from then maybe the show results? in cetera, revenues,

Eric McAfee

would just in QX. continue It QX into the results on also be and

goal full the What been our foreseeable tender is two-month future. have we So accepted. operation for has is hand offer the in that

And customer all capacity. base marketing that be that so we could the supply expecting, of will our oil with companies though, we're ongoing an

Operator

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

Matthew Blair

we CapEx revisit XXXX. was guidance the I could hoping for

in of $XX one about the million, Or spent still thoughts were you lower? you first should expecting the XXXX do at any is that think I CapEx? point, have good expect something year. stage, million a And at $XX that you million. Is on early this number? we half around Think $XX

Eric McAfee

of into different I on we're track you for blend there's a that projects, as XXXX. think The know, -- number. goes that

the year biogas flow goes. does for plan pace next have this five-year And and based upon first the some so year of quarter our construction quarter the of how XXXX of entirely between fourth

diversion real materially the I think So there's No on changed. variability changed, timing budgets doing. and we're The there. else don't has some anything haven't

certainly million So track we'd probably on be of within that to $XX CapEx be number.

Matthew Blair

the clarify like QX any QX? LCFS to sometime really should then you RINs timing the happen first sounds or to Would monetize Or to Sounds to pathway in good. for waiting And in expect the I wanted in DX monetization. of on RNG everything you're we half the It XXXX? be through. able come of

Eric McAfee

Andy, you want to...

Andy Foster

CARB we'll of when we'll right approval the storage, exchange following and the well, Well, it. that's the by actually say to to expectation. storage and monetize I then Yes, start that's it out take for would the pathways, gas

Matthew Blair

a then gallon of And provide sort question, profitability last restart? India for any it. Biodiesel you Got per on this could range rough

Eric McAfee

XXX price any with INR Not point per at of liter. specificity is in a in this price. a That announced time. It's publicly

probably on you entire able the third a the restart can as numbers well close. the and it's quarter the like to of be to looks so quarter. in now, And get But as industry. are some what And these we right definitely numbers fourth do expect market math pretty positive, put the and can and

our feedstock and plus gallons more. be profitability, would not So million but frankly, structured expand capacity to even only provided from XX so the just of to that to is million able growth XXX we formula be capital gallons

So program fund the growth. the is the to design of able be to

Operator

from is coming Your Rodriguez next question Capital. Stonegate with Marco

Marco Rodriguez

maybe, the if spend for wondering just coming plan was CapEx back to little Eric, could time a the I five-year plan. you

would maybe can Just you mix I of whether the the line new sources. a cash a frame markets, be sources, little better the or of funding update the if here. But give sense bit from of know helpful. sources, on grants, got you've kind us that's the capital flow an

Eric McAfee

pay benefit. transferability us either investment they years Certainly. or biofuel in one having can sources. combination tax of credits, different appears But or will grants into combine some these it credits tax pay tax direct either cash Essentially, now, of rather transferable, before businesses we we number than get as have for direct and of our wait turn the a all a have feature. Each that to frankly, general, because

the grants equity So are that's just million to our ITCs, $XX I These we've are additional received adjustment about as across already is described we've very that large it, very, of contributions XX the received and an about portfolio. awards grant -- plan. five-year

on addition in so partner and Certainly that the also most is relationship And we grants that probably to government-guaranteed have true. is we biogas, with. USDA And ITC, have debt. the

They're bonds. for so America $XX we million business are loan our we have can But USDA addition the to is And market under the project that, company. million range, what just California in a grow per whereas $XX called using that. Program municipal bond Renewable private in the activity for Energy typically

commitment to of in letter XXXX Same jet be template, Program municipal money some to fund million the our U.S. Ag Biorefinery California and surprised $XXX from with of bond wouldn't mixed frankly, biogas the U.S. Department USDA diesel Ag. Department business. our a under I the the have for see where with business, So Assistance we signed

XXXX financing that payments time into investment. Renewable So expanding add think a contributed Energy get then we're that's $XX the And tax pretty And in consulting we being and There's just debt plus financing able And much permitting. million sources. carbon arrange. good the available characterization which to we'll that scale-up two carbon expecting makes that that wells that $X.XX easier project. fund for the to relationships X direct When for using in our have, a to we financing at license, to some for of our in between financing wells only adding the sequestration spent sequestration, Class about those million point there. equity much additional for $XXX value project, USDA long-term of funding essentially then you and we relationship, old of America Program the credit, in tax-exempt that $X.XX and business be using us source for the even that's

it kind for appetite that these add actually structures for it of then projects, the which it strategy. government government-guaranteed California that needed. some But for the confidence not the does future. the XX-year these we're expect policies enforced I guarantee in work bond if So would with will currently reason, U.S. as and business in is reflected have worked U.S. continue bond in municipal can U.S. seen does, we be for an if in be has us, have that, strong for appetite, to by then us programs. good that of a looking a government's market loan we've to their general, And And the

Marco Rodriguez

question. last quick Great. And

margins guys this you gross ethanol. the from on saw Just that in quarter

how the mechanics just about in issues, Just the kind of and the you how that, given you're talk thinking about rising the that price kind rail second behind about in corn thinking you're of half? can

Eric McAfee

They after would their are The hired following lot it. should COVID. recovery I the a insufficient under are railroads quicker, cost. lot quicker, that that is rail aggressively a all reaction say [indiscernible] we fixing to the Management trained have suffering They temporary. is some That progress. and added Board

that there the next that. over will anticipate in be would I gradual improvement So six months

is as other yields better than corn, which what that market we we Ukrainian you're when to to you as will knows, be reaction, a the some off market. speculative going Ukraine, flowing corn shut corn the of doing by equation somewhat and And occurs. is reaction some the have into The through starts side get harvest seem expected and see how everybody this

week see anything I through personally harvest, the in Ukrainian impact. the the that to of and to elevated the because rail of think the of add middle in you flood want and marketplace. supply to resolution temporarily a corn have saw curve. in But do the -- If in would it's We a to we're combination subject a how next we situation are largely in an Ukrainians market a Andy, do where lack steep down Ukraine that? of

Andy Foster

lot this about I what the like. -- in from hoping there's a pricing say and ethanol one of going the carryout is wishing, is a months harvest of perspective would industry rougher to No, praying is going our is August corn look to what like, that the typically because usually look

three to of -- so August, is we when and look, I January, year I favorite August purchasing February go if of the in back months kind comes my you identified ethanol. And it think typically and least

very corn actual some, but right now. come the high basis down So corn of price is has

really of a year. we're And of So farmers at the because selling. getting this typical that's time not lot aren't relief

elevators As for new we get corn. have to closer crop room and to they the start the harvest, making

going I is I think an be spectacular average to year. corn year. a going to this don't think be it's

-- of belt doing expected. think dry of Western I to the the right it's is kind the going -- is corn some there's as corn but very pretty belt dry rest now,

some little advantage of we'll normalize try a we see do harvest, to thing in any So get as if things was start supply so. bit the start that think barring to than lot we'll a as escalation that's issue, that's I of about, more. of a But any Ukraine, there's further And to major and talking of us psychic take for opportunities pricing, Eric a grain wheat. real into disruptions, to more

Eric McAfee

sell the of as we medium think should I corn that reflect though, don't one our the sell In ethanol. We fact term, investors actually products. on

that a So margins. ethanol it's for generates our demand

from generated prices where and EBITDA year, Our corn they of we had plant ethanol are roughly were most as million now. profitable our California, $XX same we in the right

EXX the significantly will EXX expand for funding ethanol. of million and $XXX So market

Andy Foster

Yes. we numbers with all gas happen going off but of as And sort I was know the saw sooner or the prices. yesterday, fell demand don't to right EIA that expected you high if cliff later

start or a And combined But -- to I demand to And going have more to just their in people the their down edge so for tend I ethanol demand, of think terms month And limits of is that. week of high a you're look -- was weeks of sort data. time, a of gasoline that I almost And back-to-school of of don't sort to digits. double at paying see of data with price data. I gotten gas. think

demand It's correct. the is and because in point U.S. had with from industry how year. Eric's haven't this lot ethanol That's the one had into the really fall we has look record a at let's -- think I of exports So we that And in the ethanol go spot. positive the imports Brazil.

California. just I year. think think see one one landed don't in I this another we'll

perspective. that that, speaking, dropped trends off positive everybody will largely that. has really But had demand you tell will sharply. you tell So pretty we've really, Refiners in

So the Corn goes. cycle, normal right have our thing keeping where I running to we'll now. on kind see that's is of demand we're ethanol but eye think its

Operator

from coming is question Woo last with Your Edward Capital. Ascendiant

Edward Woo

by [grumpy] some questions the of You record the and federal outlook answered levels, you for we've and from Do down. pullback rebound? gasoline gasoline sustainable prices in for about see to of prices been oil a But lot back lot oil? there's my for ethanol. may demand a And get in increase to think we'll for government outlook that obviously ethanol possibly decreases the seen

Andy Foster

like price with in again, going oil I has speculate. you kind of to follow weird I'm do. not going have think and stuff lot things of to geopolitical a influences Andy. in on we're This China Ukraine of But New traders do and the is expert, with York. I'm oil. -- it on terms the rest an all and I not

not So there. I'm going to guess

when of sort ethanol feel we're and on to demand time do year, the normal in of vacations comes rhythm we're of as least the it get the you get at Usually to a toward see getting decrease to people you at cycles demand, end you like starting think summer this I side. the our and back back summer into for school. stop

we're definitely, gas -- think it which like feel starts of could the feel we're price in be any living like down. of barring mean, getting come tomorrow, I has the outside more we're in normalized. but to world into events, kind today I I So

compared down little around, last week was But and that gas was a on California. look bit. have As you cheap Coast incredibly California prices gone East I to

more will the getting we're or back So I people back-to-school it's and wrapped as of ethanol we're cycling they And I think the have cycle. into, at time year. kind time then kind of back of I summer up business, a week, of look of normal sort this into think vacation

the caveats So and with go there price all this some as I'll that afternoon, have all makes put that could crisis international the away. jacks of that of out we other that, oil

Operator

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

Eric McAfee

Thanks, Company presentation Kelly. that shareholders, you the about to and Aemetis. posted We us with on home the look the page Aemetis and analysts Thanks of others Please today. presentation growth the forward website. to in at for joining Aemetis participating review investor is talking opportunities the

Todd Waltz

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

Operator

concludes teleconference. today's This

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

Aemetis (AMTX) 6 Aug 222022 Q2 Earnings call transcript