California’s CPCFA adopts initial resolution supporting up to $1.1 billion of tax-exempt financing for Aemetis projects

Aemetis Inc. announced May 21 that the Capital Programs & Climate Financing Authority in California has adopted an initial resolution related to potential future issuance of up to $1.1 billion of tax-exempt bonds for Aemetis projects.

Adoption of the initial resolution meets federal tax requirements so that funds from any tax-exempt bonds issued by CPCFA can be used for qualified costs of Aemetis projects incurred after the date of the resolution and for certain prior development costs.

“This initial resolution adopted by CPCFA further confirms the value of our projects, which reduce emissions, lower fuel costs and create jobs and economic growth in California,” said Eric McAfee, the chairman and CEO of Aemetis.

“The use of tax-exempt bonds at lower interest rates than other sources of financing has potential to enhance our financial position as we implement a variety of projects that are expected to strengthen our balance sheet and generate profitability,” McAfee added.

The Aemetis projects covered by the initial resolution include construction of more than 40 additional dairy digesters and biogas pipeline connections to the Aemetis renewable natural gas (RNG) production facility in Keyes, California, as well as underground CO2 sequestration, and sustainable aviation fuel (SAF) and renewable diesel production under development in Riverbank, California.

Aemetis Biogas currently operates 12 anaerobic digesters that collect dairy manure waste from 15 dairies, a 36-mile biogas collection pipeline, a central biogas-to-RNG production facility in Keyes, California, and an interconnect unit to deliver RNG into the PG&E utility gas pipeline.

More than 50 dairies are contracted to supply waste to the network of dairy digesters.

Aemetis supplies approximately 80 dairies with animal feed as a byproduct of ethanol production at the Keyes plant.

Issuance of tax-exempt bonds requires allocations from a statewide volume limit.

Though the resolution states CPCFA’s intent to issue bonds, the adoption of the initial resolution by the CPCFA does not guarantee that the CPCFA will ultimately approve financings until final documentation is completed.