Aemetis (AMTX)

Todd Waltz EVP and CFO
Eric McAfee Founder, Chairman and CEO
Ed Woo Ascendiant Capital
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Hello, and welcome to the Aemetis Fourth Quarter and Year 2018 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

the Kevin. or Aemetis and conference visiting is Thank year to filing previous earnings Welcome you, the earning corporate updated recent download review aemetis.com review for aemetis.com presentations, call. available press press at and release, XXXX the homepage. fourth presentation conference We Commission, website calls. suggest Security on This our with to review today’s Exchange earnings and quarter releases

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

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

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

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

XXXX, prices three of XXXX gallon of of ended Revenues quarter gross total fourth the million fourth XX, period attributed XXXX months were for attributable from loss was to from $XX.X million, in for during with I’d ethanol the to quarter attributable months softening fourth a to loss for profit to of fourth of for end at of during during gallon the interest the bushel loss fourth net million months compared Aemetis the end general XXXX, $X.X quarter non-recurring interest Net the attributable at for rose additional operating to $XX.X quarter of to corn like XXXX to where XXXX. non-controlling legal of the XXXX additional of million, $X.XX quarter financial total the of $X the a three million delivered quarter Gross $XX.X XXXX. during XX, compared an $X.XX three loss XXXX, Selling, was attributed of $XX.X loss December net of quarter the to the per -- $X.X December $X.X the quarter the million $X.XX million quarter $X.XX loss per ended $X.X compared decline the in for with fees. the bushel fourth and Cash of ended the of per of XXXX. review million of an to XX, was attributable administrative non-controlling XXXX quarter to XXXX, $X.X million to compared December for to net to for fourth million, compared market to XXXX Gross of expenses were (sic) [$X.X during same periods. during a ton compared million. million fourth XXXX. Now, Aemetis million the $X.X primarily loss for $X.X fourth was was million $X.X the $X.X the for $X.X $X.X per same respective to million] fourth to profit per during the of fourth million results quarter Operating cost XXXX. of

year-ended for net attributable of same to well the revenue to increase That million XX to for $XXX.X in our expenses million administrative production related XX, XXXX. the million, $XX.X XXXX, December months of and completes general during to XX, on XX, a distillers ended ended our wet primarily loss attributable for XXXX. $XXX.X $XX.X volume administrative period land results in purchase, grain in loss profit grains per selling, attributable India. $XX.X project during to to the December to the in overall Gross was for compared XXXX. and Moving XXXX, to ended increase wet for was to ton and litigation. loss was expenses Revenue XX% XX December primarily the the to The XXXX in months ended compared ended same ethanol distillers professional in the the was Selling, period months period XX XX, loss the the as same XX period for compared months the compared XXXX. million COX Biogas during and increase increase price increased to to increase financing $X.X Net in for of same an operating million the Operating December general million $XX.X million in increase North XXXX. $X.X XXXX. as December for the in period review. $XX.X compared December million XXXX was were growth million in during closing distillers compared price Gross the year financial attributable in an XX, XX, the XXXX December America, million Aemetis months profit same The $XX.X the of XX to fees ended gain was XX, for $XX XXXX, and the XXXX.

business founder, to Chief Aemetis, McAfee, the like introduce update. would for of Chairman Officer Executive Now, Eric? and I a Eric

Eric McAfee

Todd. Thank you,

gallons who founded we and Company, of moment than new information. in own provide to million ethanol, in production our and take a renewable grain gallon Modesto. operate you to per production more is XXXX, of capacity For Aemetis located our may XX fuel India. per some portfolio year California capacity and in XXX me be corn facilities million background oil Included with near the and brief let a distillers Keyes, year U.S. in those plant was

we of per dairy pipeline We digester year conditioning XX we refined distilled Coast $XX waste the glycerin and of also on excellent biodiesel built, funded India production city facility XXXX California, XXXX. million and and made Kakinada. central into businesses ethanol. on Aemetis orchard late waste and of gas Last in and of early other ethanol million million during the operate project developing advanced are gallon wood own each year, port our core cellulosic biomass convert and in biorefinery progress stages a a capacity near the launched four the $XXX and East to a

our in review business first India. Let's biodiesel

XX% past which the biodiesel Services adopted production XXXX. tax in instituted In and The of Tax biodiesel early we and few for for blend at India India gallons updated than the biofuels set XX%, to billion of expansion biodiesel new the a being has the India of XXXX, of the a is to lending biofuels In years, domestic national During to and regulatory believe requires support to block Goods India biodiesel in has implemented mid-XXXX, tariff biofuels in now with industry. target and structure been the of in reduced a it biodiesel production. the government subsequently been X diesel support target high importation X% policy biodiesel a to order into more India. national developed

of of year our domestic After The believe will India years early upgrades biodiesel gallons benefit market of capacity. to large five about at The unit, operating. million pretreatment about India plant and our now the full two biodiesel unit per boiler now that As expansion the plant other fully investment enable the is producers, of new operations one capacity. XXXX, construction, we only company. XX new the plant we completed feedstock and plant of directly in India upgrade that

During of including million $XX.X the XXXX the to period, X million, XX% about gallons biodiesel construction plant revenues increased biodiesel. India shipping

revenue of capacity that million now of is in production place. XX increased the biodiesel However, sales gallons XX% this than less represents

excellent in and stations ramping retail making up sectors. coldest without we blended fleet, blending with with government diesel revenues truck without in of are customers distilled production during fully blending. in requires We headway new the approved months biodiesel we diesel, India, and during colder are be by sell distilled Though biodiesel winter adding sell to whereas XX the weather distilled warmer biodiesel the two to months

of legal, the new biodiesel Prior India India an sale decision branded shipments this We we of for late time at of are Biofuels but biodiesel as well fleet Supreme truck as sales up retail and the began and the customers a brand under not biodiesel for retail now existing distribution. retail Court stations franchising to developed ramping to opened in channel, month. XXXX, model first the Universal stations retail was

oil in includes sales stations, to testing new our Biofuels biodiesel customers mining to X to mining India diesel retail companies equipment per One use dump similar more than branded late-stage Universal in local with volume the customer retail gas with This large biodiesel, capacity Our for large India strategy potential companies potential diesel U.S. now replace XX% biodiesel of franchising mile. mines. to plant equipment. has operators testing India to our franchise sell in in premium name power their in High a very include our of heavy mining requiring trucks of than at consumes gallon more biodiesel

economic discount free three of oil issued to XXXX. not subsidized biodiesel we of request, XXX-million-gallon the quarters expect environmental government. diesel. and our is biodiesel In purchase companies to funding benefits during the India, biodiesel in production will government from are a to a marketing we for oil without and in plant the shipments our addition, in from remaining of large result provided petrol at companies a the recently Since domestic benefits India sell and the The biodiesel which marketing government customers, product

oil the the and expect cash driving expanded $XX in support will price diesel we be range, will biodiesel believe significantly to flow glycerin positive annual our crude revenues of in refined consistent expected India India $XX per in and We an barrel business. prices that

plant India without the upgrades pleased upgrades, our long-term the India of and are We with the on incurring very achieved third-party plant. we debt completion

of in the as funds as be development to India earnings As a created cash well other to is India, net provide for gallons meet as the increasing expected from future demand. used our repay expansion of result, generated XXX million projects, plant and to a senior debt can funding

Riverbank the In the that records cellulosic very in the point. we at in California are the digester below addition production businesses Biogas Achieving ethanol the carbon India, dairy to our zero pipeline three the Keyes in Aemetis project, new in project, excellent factors ethanol major control. doing progress and well milestones and

of traditional business. Standard mandates allowing billion Now, hardship XX X.XX avoid XX avoided billion of let’s had volumes credits. our gallons EPA Renewable oil issued gallons to and refineries at cash billions about allowing In per Fuel California impact mid-XXXX, serious waivers to the be a refiners. review The the by of refineries, both biofuels year gallons to waivers ethanol, by purchasing ethanol but oil of flow have these positive blending biofuels

needed. direct a ethanol billion is now million profitable highly X about of issued XXX gallons oil waivers to is result than which the in inventory there U.S., hardship refiners, As more of gallons inventory these

creating have to result, operate in gallons corn plant lower by of the feedstocks. ethanol, a putting at expected capacity, on Keyes ethanol significantly about upgrades ethanol with Keyes include expected full X despite the the we continues improve high upgrade occur profit uptime. to carbon while plant to intensity reduction and and The yields downward natural plant million our nameplate low Keyes continues margins decrease ethanol price Standard. natural constructing credits is dehydration achieve production above compared usage intensity our Keyes designing score upgrade operation team by the unit, California the plant As in XXXX. and and replace operations plant XXXX, increasing the thereby $X carbon sieves. other the in hardship issued and plant at membrane projects reduce Keyes are the for gas energy-intensive price by a to Such our resulting profitability gas to margins costs, million prices more to business in our and of To XXXX. been waivers Mitsubishi with to ethanol traditional QX petroleum Fuel under Low Carbon pressure increase molecular the The increasing the EPA, to ethanol This decrease

the of plant with into are This purified tax of nondiluted in funded debt carbon reuse now compression land and funding acres $X by is of to convert federal renewable adjacent changes producer We fully new plant. financed, liquid Keyes acquired a credit construction as nondilutive to quality the for plant to produced good the dioxide the industrial are than X our and The as more financing plant in Keyes land well the being the upgrades, COX million we Keyes tax purchase project build COX COX. projects. million of of the of included for recent the COX plant highly $XX

the dollars COX $X.X working monetizing this on several million the are We addition to year could revenues. expect worth year tax of which per we be million sales the process to from credit, per receive in

cellulosic pipeline digester project. then the carbon project, discuss zero the and and let's dairy below Aemetis ethanol Next, Biogas

annual emissions landfills in about be as dairies excellent order dairy value reduce carbon a delivery carbon commonly Biogas After or to about the a change existing and directly at to gas dairies from sold of gas utility After the used transported a the trucks law for use funded is emissions. plant, pipelines. in XXX, can in sources. cleanup biomethane, diesel into capture to from times known build approximately earth's the and as With intensity XXXX the and from work, technologies the used into $XX production methane known into on-site through XXX. waste of We dairies new financing damaging digesters, biogas that Keyes transportation dairies emissions either way captured be to gas or a is either project we more of Carbon a biogas to Fuel is displace more heat. biogas carbon biofuels RNG. as of from to be biofuels in development into resulting for year and is carbon California's Biomethane natural mid-XXXX that valuable generate gasoline convert advantages. XX On existing up competitive in than negative of lower $XX Methane, and recently methane scale injected exception in of that biofuels our reduce to the climate carbon plant we known trucks About is anywhere trucks of potent with along farms diesel can Since related grants gasoline points believe to of and COX the the replacement to powerful from create XXXX, diesel. natural project to California sustainable and have a the The gas gas can in California $XX can our then renewable that California gasoline diesel the has waste commonly credit of pipeline XXXX systems. biogas capturing the is late the XXX [ph] a via dioxide feedstocks in becomes captured blend as price pipeline, a carbon Fuel to natural vehicles. of converting dairies XX% reduce farms. California which on to Carbon and increase natural more $XXX fuel. emissions, buses at targeted To of other are year fuels, biofuels million biomethane it greenhouse use zero Low to passed with renewable dairies, direct natural and gas per carbon a below million biomethane California that and a deliver or petroleum conventional Along ethanol replace to in methane reduce digesters and intensity a or air different projects biogas intensity is intensity to biomethane today, pollution. cars, be from Bill or of and capturing fully an create and Standard expansion carbon to dairies fuel methane announced biogas the petroleum boilers the impurities Senate about biogas mandates the Standard financed process, be of Low the compression matching our credits mandate, than other negative is from than gas intensity biogas than in convert significantly diesel positive to capture and of modified a biomethane,

With Renewable success biogas ethanol conversion of plant, Recently, fuel biogas, that south a near plant, one three ethanol of completed to of project we positioned million $XX California, for the transportation uniquely is digesters ethanol gas clean their by in another constructed gas biomethane biogas the value need this, build the as at Aemetis the production since bring to up completed into or recently Aemetis Fuels California. plants in cleanup maximize biogas replace Fresno, aggressively Calgren company biogas The pursue believe to pipeline to from launch companies a successful plant. to dairies a to ethanol they XX and the diaries ethanol pipeline, biofuels, approximately of of petroleum the the only for for then compress the renewable the carrier Keyes project in our and inject near the own located template common compression Calgren and area used natural pipeline. gas this systems digesters, of provided to

education customers ethanol produced marketing distillers dairies, Aemetis biogas launched to program local already of During are the grain XXXX, plant. the whom and by Aemetis the many of

a diaries, XX exceeding signed result a of our exclusive effort, original participation about this now of As dairies. of goal XX have cluster agreements been with

timely cleanup to a state build biogas is needed rapid deployment be with of on-site portfolio to dairies subsidiary financing million with expected pipeline project. in of extend the Aemetis and our project, order new million. continue Capital. dairies to by preferred round the manner, equity a biogas senior of Third funding pipeline to digesters gas system dairy from add Aemetis obtain Eye $XX $XX announced in capital to and then expect budget lender, the digesters We recently allow grant a To for our The company the first our participation agreements sign as investments

commissioning the to free three for is parent biomethane to the potentially next biogas of equity additional related We after company that the the the and project. the this the the We are flow biogas be receives than free and XX% sign full within to remaining no occur in diaries. the the full completion continue preferred the is the digesters of shareholders biomethane in plan pipeline of preferred dozen to by of systems redemption than from is the year. very-pleased first a and The months cash ongoing dairy repurchase stock, a was with of expected of of XXX% first remaining After less flow. flow stock to within engineering begin redeem followed redemption completed equity about phase to order with to stock, to preferred redemption supply system receive accomplished dozen Prior the Aemetis more the project to two XX expansion operational dairies to of cash digesters from dairies agreements Construction cash the XX% year, permits flow. dilution expected Aemetis Aemetis file with and used Aemetis, preferred preferred the ownership and automatically of will funding currently full of of cash structured stock.

process of with dairy plant, and compression dairies our plant the deploy collect our addition, transportation and plan natural In near fuel. gas gas and to the seek cleanup capacity pipeline benefits digesters, biogas from anticipate economic gas at renewable the to and additional and system ethanol Aemetis we

preferred economic For than the to redeeming recurring the Aemetis of stock. the those that dozen completing annual of more to flow, the per project do expanded shareholders, seeking business generating $X scale-up X expect the value Biogas project we to planned share dairies biofuels and after calculation of positive cash of to Aemetis the

physical petroleum credits The the Keyes gallon Aemetis compression biomethane significant of and generating and we production gas advantage XX fully the to of have as operation our funding in on digesters, access day million one to replacement sales an capability first-mover to and natural for biogas RFS biogas gas our approvals. potential handful injection pipeline fleets a to As or however long truck the seek most past. cleanup been with and utilize immediately system, compared the in injection a granted have ethanol process, develop developers. plant, developers installation LCFS advantage is pipeline regulators only utilities a biogas in approvals process of markets biogas the utility other to plant is thereby significant CNG dairy small systems, other pipeline Without California of of to costly production. extremely elect approvals having and been Utility by

low-cost of Biorefinery almond use the renewable are cellulosic per identification announce products of LanzaTech, carbon Planned fixed in products, first from wood a period. $XX high-value contracts set Aemetis publisher. and as fuel other believe more our biogas was XX than of our for named decisions generate of including with carbon the lower the California world's $X low other the years about fishmeal and meet and Biofuels a create the of for the worth Aemetis China, cellulosic Let's half ethanol, carbon advanced cellulosic consuming Recently, the both, the year valuable ethanol. waiver for waste gallon, production is market to below per production ethanol using to finish per The carbon gases earned cellulosic the $X direct DX pleased and with ethanol a California is Riverbank, ton the seek a to Project full biofuels projects engineering that Number and from loan that produce commitment price, significant expansion project, a by zero steel price commercial USDA We World contract daily production XX-year providing plant zero bio ethanol price on support million related one high development California that the and the goals debt letter guarantee program. standard our LCFS corn the waste tax grant number a an for equity its our the $XX.X lower walnut result for funding million the X biorefinery ranking fixed financings the A DX Riverbank a Digest, USDA and and banks wood funding offsets a signing key million $XXX million law. conditional of Commission largest financing near million waste of plant technology, this as capacity below carbon to of the equipment; to carbon of under project. Energy of fund we regulations The Waste-to-Value announced RINs patented Modesto, summer XXXX in required credits economy. ethanol to million have at to of of and under that loan biofuels strong plant is to Riverbank upgrade gallon opportunities heavily the syndicate project; XX by were to in that and $XXX update to three microbe California. project that We numbers, $XXX low in has which operation credits Northern factor Riverbank, in a been of

fully will that cellulosic Now generate construction guarantee Riverbank required the focused USDA ethanol letter. commitment plant pipeline been industry open at production has The margins renewable we conditional and cost dairy late strengthening patented occurring strong clean signed, for contract we believe as of include flow loan XXXX. bonded, plant fuels position the that maximum the than summary, EPC a the Biogas by has is rapidly the million the Keyes of our $XX more on low-carbon, our India as technology our begin which to debt, more expected Aemetis feedstocks. Riverbank digesters USDA are plant The as long-term orchard, to fundamentals the cash and and the and cash abundant to producing ethanol In construction performance $XX the per to in expected from is of ethanol by flow to well that year as vineyard, LanzaTech profit plant related biorefinery, positive financial forest plant project, no order upgrades demolition increased the revenue in from of high low-cost, wood cellulosic than site of waste funded the growth positive deployment cellulosic feedstock. summer Riverbank Aemetis expand million burning, closing low-cost construction waste this at completing the from

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


Thank from Ascendiant question-and-answer be coming you, is Mr. question Woo McAfee. Capital. Ed conducting We’ll a first Instructions] session. Our today from [Operator now

live. Your line is now

Ed Woo

still taking from up Thank my holding upto congratulations on is production, is Yes. specifically it What just working you the for question sales your capacity? new and or way India. [ph] all to you back guys on question your is projects. My the guys capacity ramping process are you

Eric McAfee

very a good question. that’s Ed, Hey,

that each do not production as we previous calls capacity quarter, constraint. our have earnings very-pleased unlike are We now

our now India. up requires We blending of are in ramping out come The customers. winter winter season by as we

March to rapidly the time don’t decrease warms period. winter they have their if So, blending they the tend during time. up And India purchasing capacity, in

truck commentary, Historically, our recently fleet, but additional the fleet also fleet bus in And up expanded full we've shipments. is feedstock on our three the But so, plant breadth are hand of the base. and and we as production But, the we rapidly now I are expanding now in been marketplaces. And into mentioned increasing our have we primarily customer are have just we list. customers ramping customers. customer

stations. retail the was First

year diesel with gallons As there you is of consumption a billion sales in XX of of can India, imagine diesel. of a retail very-large market

stations I few have have branded our gas product stations, Biodiesel. weeks, our retail product under or Biofuels we the just that Premium actually the we up in announced so, the name. We sell And say, as brand to past our opened Universal should diesel

logo et for a Premium have cetera little So, you Biodiesel.

expanding India mining. our also into is market So,

of very, is can have that significant crude in diesel mining for use I think And of know, price diesel. moving oil means that up very biodiesel cost price all companies internationally, We distilled up. reduction the is moving we our of as India petroleum instead

in -- from lastly consumers X so, mile buying financial from gallon us. then, that these can per their trucks large And the benefit And diesel significant large more than consume running the mining is of see biodiesel government.

XXX So, of XXX biodiesel, government’s we gallon. to process are or in came biodiesel is of gallons entire out, the a for sought country production the million buy the purchase middle in about the where entire government’s million

be And a to are add so, but government entire can government excluding are we the tender have other to not we did seeking they and fuel markets, complete wouldn’t of markets to customer, course our than production as allow process, us to we produce, which continue production we the them. in to allocate working our would more those but

complete the volumes should time. disclosed that expect you and we the that get will So, at be that as paperwork announced,

Ed Woo

then, And congratulations onto the on getting the USDA Great. loan project, approval. Riverbank moving

this closing to start You I the expect open by late thereafter shortly occur plant XXXX? summer to with that construction guess

Eric McAfee

That is correct.

get of to completion on first financial basically on-site as are third And XXXX. we end the quarter plant in third construction, up phase of quarter. We a the which And expect do is movement in then, close, then et in the currently and we development, phase, that into expecting which that the permitting are wrap and I physical cetera would event. start result with will a would the engineering be

Ed Woo

you delay Is was risk do the getting biggest to there any or that financing? phase, the construction that feel

Eric McAfee

project. our this in going is be don't I think to concern area of construction particular

away equipment. easier value financing the the fee But, you all all then Frankly, things for else case, these and by rather of of financing common our we XXX% Aemetis. has permitting giving take and ownership has primary the not very ownership have equity to this that by someone are In and a focus. piece standard of finance can essentially much have that the We been building developer shareholders. just

And than And attractive positive to more common in we that's of investors cash in with medium guarantee, Aemetis we've up think the that three to operator we excess we that years including the cetera in that to you strategic But, $XX up so, owning Aemetis to to By to and shareholders come with ability million the projected positive demonstration building doing more be state. structure, from had shareholders $XX flow of the to extremely get structure, with And taken get it somewhat It’s cash million which sophisticated order prove approach over both invested to than the Aemetis XXX% a year. XXX% a financed. USDA loan of traditional much have of term plant. are get the type the of usual so, project. these owner very sort to ownership of significant plant kind et more to get investors I in us flow in stock, XX% per a and sell end the wiser something in is investors off than going annual projects. be

Ed Woo

how and $XX And your impacting mentioned ago Oil $XX of you the that little ethanol now months for you outlook oil, to I a lastly, it outlook price significantly outlook. bit higher lower. volatility on it think business? is your How was is would a affect think couple and do

Eric McAfee

in as in are those increasing at every dramatically demand think But [ph] a ethanol year. business. on that’s or A barrels Nigeria, as on project such effect conflicts are don’t think largely the EPA a moves, have the small soon higher to day federal crude et pressures anytime pricing supply. ethnic is should enforcing cetera, the the the But, it we do the way It in political, We being law going to range. we a the greater which per not. oil need that effect increased -- Yes. collapse it whether million is global $XX X.X of the does we and $XX in is of resolved know rate Venezuela

oil million year. middle driven year oil X.X than people we less used who day in X.X more crude year, barrels migrating and per billion global this China India hit day I should number. we first into are using are This that's related And crude XXX going that’s And So, consumption million natural is gas. by trend that and barrel to per the last we think, class. consume inexorable the

the thing would number tremendous demand the off on in impact of and the than barrel. just per fall at barrels the Arabians soon. today, million barrel per The million the easily market So, completely Last production $XX out price Saudi more day in market. XX at to were on of Tweet, crude and very meaningful in announcement the despite the could of other with out increases the success of I U.S., that has very a for by the in barrels day take then our point be XX of the oil market rise amount oil here is are production the by million very producers control in crude oil fracking had day If we’ll be crude of low X cost. a they

on trades then market one sold. lot a more for short, have is in to the everybody whole And barrel So, if other last it’s barrels pay barrel a willing the you that marketplace.

prices in having low domestically other that the not pressures members ongoing I deficit so a government the lot the the Saudi's of annual countries. of for and run too think, to their are are and OPEC, current budgetary systemic all even them

So, anyone at the the government. that those handicap basically oil what people and the decide trying to look should positions run is of who are those political Arabian Saudi the oil crude crude worth

in input prices and their States. United very, then flow positive that a indirectly if that's add already So, are $XX for exactly announcements, toward XX% said I $XX public price, you XX%, in it read without they cash opportunity of that do. Brent, is which then, to to $XX subsidiary, is the and the That trending And to a India XX is want tremendous our upward and what publicly means India, commodity think we very bullish environment. they and you business the increasing fundamentally WTI their

ethanol a cusp needing are roughly of going you is gallons, little the from as much continues for that's increase on to pump we a tired than realize XX%, expand. $X.XX going again, paying demand sold billion at you're at get more U.S. billion. think XX% ethanol consumers and And in As XX%, for that billion to find market almost the move blended gallons fuel as it's I a to U.S. of the to XX XX so being lot and be more XX.X rapid in can in capacity octane the gallon, XXX but

ethanol and into the could to the of to U.S. be So, very but going are to be feedstocks not a according Energy. capacity, we be production are bullish X.X requiring going additional primarily waste tons in U.S., the going in of cycle the biomass the Department billion feedstocks corn. The

leading taking wood in by math a the and which to our U.S. next would we for wood orchard order of need. to non-corn satisfy ethanol waste trend, to ethanol over is say lot X be strong So, in project forest at a that a ethanol be environment, of my plants is gallons cellulosic biofuels billion additional required are And requirement market a over which satisfy regulatory supporting and looking extremely a very months XX we well-positioned hope of XX% EXX


next question Tom [ph] a Our coming Welch, is investor. from private

is line live. now Your

Unidentified Analyst

Hi, far think running for reports more not what you cash up Eric. as flow. how There quarterly date been think and color has will impact the you project? COX as getting Could you the shed is do in the that on and that some target much

Eric McAfee

the have key received permits. We

the it our well they company dirt, moving as -- used we fully We And are to we a billion financing completed. And speak. are but is $XX funded. counterparty have be

of new year expect this to us. sale a its as is revenue that, ton of which for there either a COX. two on million the line and of the comes for up COX, One major about we And ramp completed a per value from sequestration delivery for or cash And plant provides expands then, regime $X.X tax separately operations construction reuse. we have to be and So, year. quarter done our fourth the is sources

math COX and that our tax is law, on year when is a be millions from the which tons in of reuse the several, our more than value large portion in of coming the many we product, reusing what we're doing are later, XXXX producing that. around or fact is which the ideally dollars XXX,XXX we positioned do required of the and to what's And roughly of we’ll project per earn so, of line that

conference quarterly hopefully have So, think of and to will Company. our we of next from will the exceed value in the COX. be I we the significantly our we million sale the that accountants’ directly $X.X doing actually call going to tax calculation received it's get But, confirmation

Unidentified Analyst

biodiesel? export Is the it true India is question. last that One of now prohibiting

Eric McAfee

consumed was a they it X.XX billion gallons, actually, so is that billion India. have XX government's would to very in which for because X% of biodiesel Yes, very, interesting, India is need that be the gallon need for rationale of

goals, was for market pressure And order, from a country. they domestic after that what them a with they of passed purchase they their consumption gallon which in on So, million which About did. XXXX, biodiesel is. that May essentially India came this six of have government exported to in policy any months XXX order out want achieve course the put them to create didn't then produced is

these policies, out whole they et as for country comments, biofuels from and they my So, taxes by these order came third they plants. all a thinking in a described cetera, then been about then purchase tax with reducing in adopted policies, they the then our I biodiesel the have passed regime, the

commendation policy some delivering goals. their and who been not them of and And been many executed, have them give talked There would government have the production on this. governments this been biodiesel. executing encourage a many, before they have has I to domestic So, for lot

Unidentified Analyst

you the on additional question planning ZEBREX facility last One ZEBREX. the to just on any this units production adding or Are one?

Eric McAfee

increases use our with amount dramatic decreases energy to from But, operate to has will energy system capability. handle ceramic actually of molecular that a capacity this the production of Mitsubishi, sizing system sieve it are of unit a dehydration production which have increasing natural and replacing gas in -- effect it. tremendous taking requires a of and We to we're operate, our all it because

floor the unit a year. actually gallons over production of a has capability So, million XX

year, increase our we essence, in also the plant, as as is we’re achieved gallons use. so million Keyes actually debottlenecking can we And production XX well So, the gas last reducing unit natural scalable. beyond

ceramic very the unit gallons. and in beyond literally just another to components it install can So, production do the we XX decided we scalable. didn’t million We want increase plus are

the and as Standard of technology. has just these it's ethanol Mitsubishi portable customer a the about ethanol, we more being and corn worth are Carbon have Fuel you ethanol money, ethanol ethanol weren't million the corn already Low of a your credits carbon corn units -- And or that operating $X So, to while you of in use $X million natural reduces also global on where at is budget. our fuel tremendous drinkable but because of primarily decrease have in been prior known saving money, year financially gas our we natural of not intensity much It worldwide. lot are fuel business, launch used they facilities per incentivized to a the business more as XX amount in the now worth gas

well you a natural can attractive a environment million as as on sell it If gallons at of an save higher gas budget really ethanol for is this. significantly XX price,

And installation are for we them, to unit. they're XXX% their on but selected this providing and very So, Mitsubishi the partner pleased us financing selected initiative. a strategic we of be

Unidentified Analyst

costs, million huge I it $X would far increased saving value in LCFS? addition to $X impact or as million a be the of that natural think the in gas as would

Eric McAfee

that gas And how roughly But reduce system correct. happens real emissions, with they have about our that. you not at natural but a meaningful we very or $X an start Oil are million would is correct, that economics in of That’s that component to on it be carbon California buying we can the natural just be you excellent gas. agnostic oil. their reduction. displace $X million spend crude of is it would carbon This create refineries all

very, case, then that able as molecule difficult We petroleum it's gas ethanol. we’re shipping the making carbon of a is And very lower a component remove our do so. use have we’re of biofuel. high. So, natural to economic as value to In

put you. think this here. I get points than we’ve CI publicly score we with expect as I But reduction And agree implemented, numbers. to more we we So, X more already will out disclosed,

in dollar profitability. So, increase it's multimillion a


you. Thank

Our next private from question from Lukensmeyer is investor. [ph] Brain coming

is line now Your live.

Unidentified Analyst

production? second And Edeniq. in for questions lawsuit a Two have on capability the size here. Brain is, you. the plant Eric, doubling India question the in of One for is, does

Eric McAfee


question revenue. the gallons the capacity. me to Let market, that’s it’s million easy. built XXX In with today's million of We second over of answer footprint actually because a $XXX plant

capacity equipment process gallon just a so, installed XX million for And plant. we

then And within and this government the eventually business come So, $XX it. the pass. actually could one structures anticipating support million, we revenue what's we did we’ve have announced budget with And of that's value biofuels in to and that the of that year, industry India. end up a a tax $XXX see million would would and India regulatory

and out decision million or that I $XX coming in about of a So, And go of million to year us the $XXX we increases year would would next XX I'm looking from of production I phase million revenue expansion. significant looking expansion within excess of am next forward first India. we to over through months. to million XX to XX expect revenues very for that gallons then the an solidifying be $XX last expected capacity then make to our at But, looking are get

four are were Regarding they which financing. a their financing a our us, originally parties Edeniq all Aemetis, case no longer party. And their it’s have the against but has there Edeniq, still involved dismissed Edeniq, and in pending, we of four claims parties, cleaning

have that so agreed Edeniq agreement Edeniq's both and are longer they to, settlement financing parties. have financing a Our signed and no us

four voluntarily the case, either dismissed of them or the So, have of out their parties all three of settled. claims to

sometime we moving So, party process. this forward appellate in standing the we are the the with and be then summer to expect case only

have outstanding I unnecessarily described realistically claims been we So, yet we ago, are as litigated, and have of originally many moving years with not process six but slow what litigation. that forward

And been beginning. expand the be of as was our I'm to several signed the customers progress years and that their they technology, successful we of the approvals any continue actually possible. will of rapidly intention their with number so, supporter not EPA filed their trying as will And the company the in of to since a and have am of litigated more claims their to technology. company we hopeful We’ve continue Edeniq acquisition hopeful implementation in I frankly, our ago.

years. best So., up hopefully end of next this sometime them with I should litigation several adjudication in we some say wish and just we process the will the or


gentlemen, I of the Ladies comments. we’ve our back over end the any question-and-answer closing further floor for and now turn to session. want or management reached to

Eric McAfee

the dialogue and Thank look We you about everyone same to us with opportunities continuing for you Aemetis. growth at meeting forward joining today. our

Todd Waltz

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


today’s That concludes teleconference.

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