Shares of Aemetis, Inc. (NASDAQ: AMTX) shares are witnessing a notable increase on the US stock charts, attributed to the announcement of a significant construction milestone. At the latest market check, AMTX stock was priced at $2.79, reflecting a robust rise of 12.96%.
Aemetis Achieved Construction Milestone
Through its subsidiary Aemetis Biogas, Aemetis announced the successful completion of the first phase of construction on a multi-dairy anaerobic digester. This cutting-edge facility in Merced County, California, is built to handle the manure produced by about 14,000 dairy cows.
Acknowledged for its dedication to renewable fuels and natural gas, AMTX is systematically growing a pipeline and biogas digester network throughout California to produce Renewable Natural Gas (RNG) from dairy waste.
Operational Growth and Revenue Expansion
The digester is part of the company’s 36-mile biogas pipeline and will combine trash from four nearby dairies that are less than half a mile away from the plant. The multi-dairy digestion and two more dairy digesters will be the main drivers of Aemetis Biogas’s projected large output increase this quarter.
It is anticipated that credits from the Low Carbon Fuel Standard and Production Tax Credits under the Inflation Reduction Act, which is scheduled to go into effect in January 2025, would support the accelerated income growth from these new facilities.
Future Projections and Dairy Partnerships
Currently, AMTX generates biogas from anaerobic digesters linked to ten dairies, producing around 300,000 MMBtu of RNG annually. With the integration of the new multi-dairy digester and two additional facilities, total production is projected to reach approximately 550,000 MMBtu from 16 dairies.
Furthermore, Aemetis Biogas has established agreements with 48 dairies and aims to expand its portfolio by incorporating an additional 27 dairies. Once fully operational, the dairies involved in the Aemetis Biogas Central Dairy Project are expected to yield over 1.6 million MMBtu of RNG annually, contributing to projected revenues of $250 million.
