Aemetis, Inc. reported full-year 2024 revenues of $268.0 million, representing a 43% increase from the previous year's $187.0 million. The company's Renewable Natural Gas division more than doubled production capacity to 550,000 MMBtu and achieved a 139% revenue increase. Aemetis plans to expand RNG capacity to 1,000,000 MMBtu in 2025, supported by $75.0 million in long-term USDA financing available at https://www.rd.usda.gov. With 26 dairies expected to be operational by 2026 and 50 dairies already under contract, the company is positioning itself as a potential market leader in California's low-carbon fuel sector.
The California ethanol segment saw revenues rise 55% to $162.0 million. Strategic sustainability initiatives include a Mechanical Vapor Recompression system to reduce energy costs and a $12.0 million solar microgrid installation. The potential adoption of E15 ethanol in California presents significant growth opportunities, aligning with the state's push for lower-carbon fuels through programs like the Low Carbon Fuel Standard. The India Biofuels segment demonstrated strong performance with revenues increasing 20% to $93.0 million and production capacity expanding by approximately 50% to 80 million gallons per year. The company is exploring a potential IPO for this segment in late 2025 or early 2026 and investigating biogas production opportunities.
Regulatory developments play a crucial role in Aemetis' strategy. California's Low Carbon Fuel Standard amendments, mandating a 9% carbon intensity reduction, are expected to drive LCFS credit prices. The potential implementation of federal tax credits, including 45Q and 45Z, could further impact the company's economic landscape. These regulatory frameworks create favorable conditions for renewable energy producers as detailed in California Air Resources Board documentation at https://ww2.arb.ca.gov. Stonegate Capital Partners' valuation analysis suggests a price range of $13.02 to $19.03, with a midpoint of $15.71, based on a sum-of-the-parts analysis and applying a discount range of 32.5% to 37.5%.
The company's financial performance reflects growing demand for renewable energy solutions amid increasing regulatory support for low-carbon alternatives. Despite reporting a net loss of $87.5 million largely attributed to interest expenses, the substantial revenue growth across all segments indicates strong market positioning. The expansion plans across RNG, ethanol, and biofuels divisions demonstrate Aemetis' commitment to scaling renewable energy production. The combination of regulatory tailwinds, expanding production capacity, and strategic investments positions the company to capitalize on the transition toward sustainable energy sources in key markets.
