Aemetis (AMTX)

Todd Waltz Executive Vice President and Chief Financial Officer
Eric McAfee Founder, Chairman and Chief Executive Officer
Amit Dayal H.C. Wainwright
Derrick Whitfield Stifel
Ed Woo Ascendiant Capital
Marco Rodriguez Stonegate Capital Partners
Jordan Levy Truist Securities
Call transcript
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Welcome to the Aemetis [Third] Quarter 2020 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 call 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

of Kate. the fourth recent presentation at review Thank review to Securities call. updated Welcome you, Aemetis The with filings and Investor suggest today's press site. download the the our or previous corporate review conference presentation, call. Exchange aemetis.com quarter for visiting Web releases Web to is site Commission, section available aemetis.com and earnings on release, press We earnings XXXX earnings

we our the Before begin like discussion to following today, read I'd disclosure statements.

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

our For from site additional refer company's on the and and Commission information, filings, charge. posted are are to Exchange available without the which company Securities please Web

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

operating $X.X income fourth XXXX loss fourth $XX.X loss $X during loss of of quarter cost XXXX. to India fourth for the Net $X.XX biodiesel corn gallon fourth $XX.X results decrease was quarter change of the the price XXXX. temporarily XXXX company were quarter to million, periods. lower oil of and to the during to to general of to per volume ethanol The delivered quarter the for Revenues fourth primarily $X.X the for compared million quarter of administrative Selling, ethanol fourth delayed for year a production expenses the XXXX, the the during our compared of America. bushel, of XXXX net $X.XX for like $X.X per market the the which process, in of in $X.XX ethanol in gallon $XX.X $X.XX decreased quarter to $X.X during of million revenue quarter was to Gross quarter quarter Operating operation to per million the review million million the XXXX. during to North was in a XXXX. reductions prices attributable temporary I'd government for million marketing where the compared revenue and fourth fourth profit gross Now, $X.X to fourth the production of India of the same $X.X gross attributable the fourth compared tender price million from was quarter rose the during delays compared in profit during the The financial fourth XXXX. from period XXXX and million respective million was quarter in decreased XXXX. for ended of same loss

XXXX. at the our fourth of compared fourth quarter quarter balance the XXXX to of Cash was of $XXX,XXX end to sheet. $XXX,XXX Turning the the at end

for note, additional plant expenditures completes of quarter upgrades million financial an during XXXX. XXXX. carbon and review year made projects That fourth $XX.X capital our key the for intensity were the of reduction construction of As end

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

Eric McAfee

was The Thank the presentation link out this to refer Todd. we to earnings sent you, release morning a today. that that Aemetis has will updated

from As our Aemetis we can discuss Web the viewing conference call. encourage under our consider found results page presentation, was XXXX, in you I XXXX. slide site of on be this which to updated founded investor

XXX of other value and the our products hybrid with zero on renewable below of grade alcohol, was low renewable portfolio ethanol, intensity including and business than safety and and XX ethanol, technology in carbon and sanitizer, gas, corn refined We safety lines byproducts, natural carbon and plant gallon have health wet products below grains biogas per sanitizer hand to oil renewable cellulosic grown We which million dairy wood corn carbon fuel US own for year focused blended zero fuels, in dioxide including Keyes, in capacity year India. including producing per and into carbon fuel, facilities diesel million gallons four are jet hydrogen health using and our maximize of more distillers including glycerin, and located the products, intensity near processes. California, distilled Included operate biodiesel, high production development, from waste distillers production alcohol, transportation oil, Modesto. and

year We to Kakinada. near million of gallon and India the port buy of biorefinery east capacity operate the refined also coast per build, XX City diesel glycerin own on still and

renewable project, our comment and of Before to to natural about California ethanol circular to company Cellulosic The to soon discussing plants, orchard, benefits business communities. our under and impact use and business, I'd from environmental created environment diesel and projects. are our waste local the wood provide development jet like gas dairy and social sanitizer bio-economy our plant alcohol renewable our Hydrogen by the powered solar be

while and our poor dubious impact communities. distinction of of quality according is a everyone and near worst in quality and the located displacing by orchard facilities the greenhouse for perspective, negative in Central within carbon diesel in an reduce emissions to quality projects feedstock by life California planet, waste a alternative natural healthier fuel. with directly results feedstock of intensity and are the Central gas living impacted for wood projects plan of pounds eliminating From in California the intensive air US to Valley having the example, of Valley, region The pollution, carbon Aemetis social per a production fellow since burning the air and waste of or jet we For providing better renewable Californians. use second production gas year air ultimately billion disadvantaged X in Aemetis significantly dairy fuel EPA. renewable has

on communities. renewable diesel plant natural projects dairy projects, specifically have direct renewable these Our designed and gas upgrades Keyes jet a are positive impact and to

credits we workers. by grade a was pandemic phase sustainability XXXX to directly the waste, and market, in reduce and our operations And that especially renewable carbon the country. alcohol of plants US our by projects one time a pandemic. than improving the historic shelter these were declines in generated we of in And communities US installation The demand western of systems impacted conditions. XXQ more In into gasoline reuse. operated value. the and our employees a in systems we In and Keyes sanitizer our high as by biofuels, Messer of QX during safe. disadvantaged on operations responding Aemetis significantly work March significant XXXX, overall the $XX critical that natural families to than report XXXX, they COX plant California decreases upgraded significant plant XX increasing demand of significantly important corn from reduction need the to intensity the Midwestern to in a during Keyes supply period local producer the liquification orchard benefit dairy creating for gasoline of dairies health external the our gas of amount local quickly that Keyes farming steep revenues X,XXXs opportunities. focused valuable at during from began conditions facility difficult that and Our significantly Aemetis Despite IRS the products the QX due and related by plants challenges, intensity carbon keeping starting of alcohol time California quality, more positive that ethanol. projects building upgrades XXXX quickly earnings a conditions continuously energy price efficiency now supply air result Valley and XXXX food to sanitizer were dairy ethanol ethanol weather to production other caused ethanol also ag became began operations project, and Aemetis considering generating about animal employs invested began is the year upgrades alcohol to have XX Despite energy in million dairy consumption response, Central the continue of various constraints decreased market increases which completed largest in COVID-XX a during orders. the in while COX and the down operate due carbon for place feed and throughout accrues the shareholder outcome, we times to of plants Protecting shut will in the employees XXXX,

ethanol demand of the reopen XXXX. XXXX, during economy However, fuel to half the as began in mid partially second recovered

and XXXX now increased ethanol ethanol release chain to to With activity, increased overall by is the plant for at demand the the California, producers. the in in caused weather meet economic capacity early severe partially driven running recent vaccines by railroad disruption of winter supply Keyes that Midwest full used in order Midwest the COVID-XX in

profitability and our of fourth Aemetis and lines each of important the growth sustained of revenue achieved milestones quarter in XXXX, During full business. toward four year

Let's gas the zero of including gas negative on and natural products, projects. dairy, and are intensity natural renewable renewable we Aemetis At carbon Aemetis, pipeline producing focused review renewable fuels. production intensity carbon our below

excellent of tax from designed carbon carbon production local our maximize and carbon plant. chain. waste sustainable Fuel [biogas] credits processes using XXQ low the with environmental benefits low materials available the reducing can is area, to from gas expenses this the the operating renewable is Standard project, under by byproducts economy feedstocks. benefit synergies Renewable while many value our or which of using products ethanol dairy the waste projects our value Keyes circular the the example sustainability of our agricultural California Using have and IRS fuel parties of Our as An natural standard, readily in all credits, ethanol Federal

dairy producing of ethanol Our local more ethanol dairy pounds Keyes absorbs per grain to to about than thereby, at million via animal plant up and plants gas. dairy, each The feedstock that X Aemetis use petroleum the XX biogas COX distillers feed then plant produces day cows an delivers dairies then at and cows. dairy, in feed. biogas that processing waste displacing XXX,XXX carbon from build to the the provides ethanol unit the Aemetis atmosphere to ethanol wet uses agricultural Aemetis The we pipeline we about dairy back digesters natural in by production clean of pressurize transport to intensity the high the

be In send Keyes wet by plant to to two to by biogas out build be of end XXXX, owned trucks renewable addition, This gas are September that of dairy the gas can of us the completed in scheduled RNG to project, connected RNG stations other we to plant. RNG pipeline. on upgraded biogas XX can interconnection pressurization, in to central station that to and to our digester enables natural carry RNG also construction boiler PG&E pool operating fueled the biogas station skill pipeline site fuel our covered produce owned or Keyes system and the operate by the is and grains XXXX. Since the others. compressed a the be to mile X digesters first distillers at Trucks lagoon to fueling including XX unit to the any dairies. biogas utilize fueling Aemetis a Aemetis natural dairy cleanup pipeline a our dairy utility the renewable at we

is biogas estimated carbon potent petroleum natural ponds California's waste emissions XX% is and plants dairies power uniquely atmosphere. to up emissions, department displacing that digesters dairies plants climate by vehicles, California that in the of conversion gasoline an by and commonly XXX. used To times energy costs carbon We to for gas and fuel due of ethanol build To a as for the has Senate California and or of of buses newer destructive to gas of two in can reduce plant, one gas, that is passed generating trucks excellent pipeline the commonly of the intensity carbon Aemetis negative XXX efficiency our by negative low to dairy only sourced biogas positive be state mandates and to reduce planet's from positioned and emissions conversion with completed. gas create operate been into than lagoons that at farms. or our the as an to for our Bill To California bio We truck in and air in fuel our way at intensity has to agriculture a dioxide electricity. dairies Methane are damaging pollution. diesel from related of intensity intensity dairy California about believe our biorefinery able grants our carbon upgrading proximity mandate, that capturing for now below and of utility replace gas natural funded we and year support change, renewable with and XX zero gas compressed law diesel $XX biogas date, maximize it and XX% known more gas potentially significantly Biomethane to greenhouse being warming value methane known reduce used to transportation applied carbon converting methane fleets, to use is and is on Approximately is are natural XXXX, come carbon awarded our to natural renewable California dairies, cars, grants interconnection dairies carbon matching to to plan renewable systems. the Aemetis from agencies through form value dairy ethanol of XXXX. in methane large to and natural for million reduce gas electric generate can gas. reduction dairy renewable biogas support produce until natural emitted the directly as biogas other

development $XX awarded In for at plant feed our keys $X day system were we our project CNG after equity a supplying addition, to trucks, year animal and more of Keyes and the XXXX, install than announced XX fund per In grant biogas natural dispensing renewable gas work, of projects. of the financing ethanol million for approximately a million our financing own plant. fuel to we truckloads at

this additional with to Our institutional investors dairies with funding end by total the funding XX of working us QX complete expand to $XX of equity million a XXXX.

largest of about supply process of In of contracts. is cash under addition in to $XX that scheduled billion $XX the the dairy USDA guaranteed debt one XX than generate per more flow US. operating XX million funding letters to is in year USDA This with dairy year project

for were Let's at discuss million Revenues production compared California our flat $XXX progress plant. at in from ethanol ethanol XXXX $XXX to million approximately XXXX.

gallons the the low inventory. As margins to respond to higher XX.X XXXX enabled to slightly managing of finished decision in million plant instead our decision offset about X% to ethanol to reduce us by by gallons in produced million operate production while goods XX.X production prices our reducing XXXX,

During demand the increased ethanol that plant to rates Aemetis reduced COVID state the ethanol that increased and at in many California, ethanol due demand is operating Currently and XXXX. related ethanol. and local temporary created a to winter sustainable gasoline maximum of demand restrictions in the in at plants decline with weather the Midwest loosening the in some along shortage production for production

profit only And XXXX. basically were were to year slightly compared about compared from to unchanged, per for to earnings while improved EBITDA of SG&A expenses X.X% During percentage XXXX XXXX. decreased actually XXXX, gross X% reduced. X.X% margins revenues share

intensity gas workers’ stringent $X the with of petroleum membrane of ethanol Aemetis electrically significant the California from on eventually million significantly diesel impact plant related to order for well operating ethanol gas margins to use which eliminate reduce interruption. of new unit products, operate at plant installation of ethanol adverse XXXX, were By reduce cluster the completing Keys This Mechanical dairy achieved grant. reduce pharmacopoeia system zeolite that primarily panel Number by partially the throughout and high expansion upgrades production increase Vapor at impacted became Number the usage in each equipment. fuel, reduce for costs, the molecular Mitsubishi with number energy use, of sieves, generated ethanol powered is in California on dehydration Commission which COVID renewable as high revenues an is of petroleum alcohol number dairies by reduce powered the five fuel at $X more and pipeline is and XX of a year, with ethanol high of dairies and impact upgrade progress used initial an the solar California six, The million alcohol solar by were per replacement to are and plants, XXXX. to September and biodiesel not biogas new carbon an operation The natural the an completed, power year Recompression utility million that credits be gallons new the carbon alcohol or feed. consumption known battery operational and plant. fueling the construction transmission and Energy sources, high replacing unit. work Number plant. of natural restrictions gas will designed combined sanitizers, fire one, and designing pumps amount carbon operate To partially with known value the dehydration and further cost potentially PPE interconnection planned the several including cash targeted increasing $XX potential constructing our Keyes grade, as significantly of able natural potentially year high three year. increasing electric and natural plant, gas We California for of project cleanup system building use flexibility significantly more the upgrade Midwest. additional next provide while for continue grant. COVID million reduce efficiency pandemic three, Keyes upgrades many to The systems dairy storage loadout, offset use or other a will companies grant. work to and motors our per new as backup use gas gas sanitizer the operation the our fuel gas at When optimizing MVR primarily produce are by $X of and of grid in plants, implementing USP natural of solar. reducing build at while alcohol low the two animal the million natural infrastructures. our these are value produced of California US than plant array from a and purity natural and projects California in the deliver plant, expected the replace dairy production increased to pipeline building natural petroleum to the ethanol operating despite refinery grade related plant ethanol micro tanks in XXX,XXX QX trucks to million largely to Keyes Keyes These distillation businesses ethanol that to operate stainless systems implementing be by two, RNG RNG by gas year. renewable as plant grade storage eliminate by projects and natural to in than to a Number the we operates funded alcohol able was past using funded our grade to the our operations. Federal QX we electricity, plant, plant at ethanol four, expected increase related providing end station projects critical use COX reduce to petroleum to will up new year including efficiency petroleum USP gas natural to to this including for and along saving Commission and funded columns margin to and policies, Energy unit capacity the operation costs. utility and $X renewable the gas intensity higher pipeline Keyes steel and standard continuously food without operate Number use installing of at an electric plant, for of ethanol flow $X.X the to safety by by with will distillation our our This these energy by an New the currently transportation the gas to the California alcohol essential grade to begin facility, installing five, gas shutdowns

our universal about oil business $XXX OMC fixed portion order of review Let's our a by one past, biodiesel Last issued required bidding for India companies. three for year biodiesel. the India. quarter, subsidiary government the a newly in the gallons the in process purchase did In India XXX price marketing on biofuels million million biodiesel

bidding volatility crude level XXXX and oil to due process other OMC of biodiesel successful the for However, in a not markets. was in high

of in to year a contracting Aemetis, So including fixed OMC by producers, to requests price. been one the instead monthly response biodiesel a contract a process bid changed with has

to OMC process allowing during We successful diesel the be petroleum and into new air emissions quality that biodiesel blended reduce large bidding to expect carbon in of volumes XXXX, improve monthly India. be will

to one production improve indication gallons for X biofuels quality is amount five biodiesel to about XXXX production about biofuels Importing marketing requested that their is in the of carbon purchased under The in marketing capacity an biodiesel is that not issued India demand of capacity government reduce consumption air be government was month. additional needs. companies production emissions. per market expanding year, of crude the India India oil The million oil, at companies oil imported India biodiesel is meet plants to approximately of the entire to offer is into by the tender policy. National biodiesel rapidly India last large and signaling biodiesel biodiesel Our plant the third allowed the of dependence reduce capacity late on needed

So of only operating gallons purchasing, delayed months government offset COVID-XX production X.XX is government crude diesel diesel in we goal for nine industry declined a below Currently, price per domestic which can set approximately million India. XXXX, year crude India meet India due domestic oil in the of OMC the blending, taxes and per gallons that India the XXX there's any oil biodiesel was large billion crude sold about price of in by and price Though biodiesel believe as the barrel, increased largely a waited while $XX fell domestic that produced remained the amount the price government. of biodiesel plant for production of India to declines. the capacity during to unchanged with shutdowns global along due which of Aemetic

feedstock our the increased by India have government remaining biodiesel oil diesel is million As primary crude barrier diesel the increased. has to biodiesel at hand price consumer our barrel the have our linked products. by in India Since maintaining revenues. than domestic prices, operation annual other is prices global refined COVID increased the the India Due cost level will also global full The government the glycerin a at accepted to price as increased of the in related price India biodiesel of received which capacity, plant of $XXX prices need OMCs rising and taxes. responses generate than in for to in sold India have $XX as more in to crude prices the increased same more prices of of increase today, plant per oil relative our sanitizer demand, to

We Riverbank, the intensity zero under our zero carbon hydrogen Modesto projects discuss including application. construct achieve continues Though issuance carbon California. jet and about of to your part has move final of authority and must removed, X.X construct million orchards. a fuel using about to creating financing. California permit pounds California the allow Let's about EPC the and Central a expected to diesel in orchards air almond with in negative that are permit forward engineering, X year walnut The were and authority major development waste under further our pleased us of wood. amendments carbon for as bio construction renewable Almond acres initial final Riverbank, planned have agreements an Aemetis will milestones, then life XX air be original Valley to refinery billion near

riverbank to diesel fuel. intensity project jet usually designed of cost renewable the revenue and of and production be used annual fixed waste XX XX to XXXX million hydrogen it's distillers $XXX The than and Riverbank generating gallons more year oil the per of negative per flow. corn carbon gallons renewable a We diesel diesel, site million to at jet than of per year expand year $XX to year plan by more cash million of million positive California becoming prioritized in the use to which state other zero oils no with The since waste for jet supply is cellulosic burned riverbank the the renewable material. dead load Riverbank the carbon issue has major intensity signed our such as is plant in is waste biomass damaging reduce five production management and renewable plant for year large there's waste and to stock piles field plant orchard wood to XX most wildfires. produce to contract Aemetis in So feed forest, plan. to market for reduce the year price low other forest orchard as a designed wood The

with extract development teams funded three federally a from a issued fueling produced strategic wood was orchard and production achieved wood. from produce sugars Then engine ethanol funded be of Berkeley, other ethanol and our wrap technology work Aemetis ethanol in carbon expensive joint displacing extracted Aemetis, has produce process plant, the of biofuels J Let's in exclusively the Aemetis Aemetis high testing. technology waste collaborative California cellulosic awarded review cornstarch group first and ethanol wood intensive California licensed from used up negative a to the development million partially to A exclusive for of sugar in can the in and and Keyes biomass for a sugars bioenergy quick institute process which carbon The then of of grant feedstocks. patent been negative from years newly orchard milestone projects development using with forest with from and by an non-commercial commission waste lab carbon cost $X in energy years wood to to patented low The orchard ethanol. The as QX, in California forest. and intensity liquids. cellulosic ionic the value resulted feedstock Bay the fuel XXXX to worked

than operation ethanol to traditional running During quarter an power torque testing. generate XXXX, modified of was was The as generated as on of an Keyes replace in of such patented plant, valued cellulosic octane both low high petroleum. cost cornstarch process the ethanol the while low engine high component creating sugar are at originally allows currently well engine XX% very low more a and design. our be particulates existing used diesel, to ethanol third and level as producing of as almost the used technology of The fuel ethanol emissions gallon. low used contaminants same performance plant, wood ethanol a corn that waste The Stanford University ethanol engine extraction engine ethanol or pulling the that advantage in about developed than contains to the since there's $X each an diesel compared a content ethanol and cellulosic sugar of engine per more the at takes no to emissions grade alcohol, to

in this Importantly, corn to scheduled ethanol our increasing ethanol. at which is be substantially from plant existing of process value and feedstock extract decreasing implemented innovation waste, sugar Keyes, to cost of the the California our

technology Aemetis extract pre locally expectation intensity when plant sugars leading orchard jet We from thereby, becomes wood rapidly waste and a operations and producer from input In commercial carbon increasing the renewable reduce that fuels pilot new natural expect LCFS, RFS project and of extract intensity sourced with the with maximizing a sugars deploying IRS during summary, operational. the carbon move force dairy of significantly waste forward fuels diesel to value is and low gas credits. to XXXX diversified by wood Riverbank renewable and negative costs, new renewable carbon projects RNG adopting to XXQ and is to

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


[Operator first Instructions] Wainwright. from is coming Dayal at today Amit Our question H.C.


CapEx And or about your about year renewable completed natural digesters for On this. efforts, if the should the And so? the from any talk contribution the fourth related dairy cetera, expectations around you deployments additional to next how could XX two et quarter, color in requirements, the changes any? XX, gas we for on to think

Just very an be update would Thank helpful. you.


to three doing biogas renewable then but produced, six generation. The approval the gas process begin go a our there's you approval and is then from Resources process. verification of the of dairy of And three Board actual California you quarter processes actually amount in your process back about to revenue their earlier recognizing revenue to months get of measuring months natural

it's expect to we up currently upside starting XXXX quarter So an reflect when as of show to October revenue X, in surprise, second the going XXXX.

then up in earned. low show computer up shows It after that months generating carbon approval. it a a up And we've financial as start will fuel six credits from literally perspective end QX So of XXXX. in standard we number revenue, the we already

Board half at tremendously of or projects revenues and X. currently Within not first show of sort lot the been unless us the And of any generating getting of helpful a these of start quarter any before has October doesn't sort Resources quarter California importance a start few practically delay of working of getting there expected material of the doing not XXXX, or you're or show of with up. the weeks show we not in for mean a there's from would credits of some three cooperation the year our did understands no the we to and we're is quarters in speaking, we a XXXX up in middle we're But So you as all. month It revenues in make fourth the six running year something. with carb. but it accrual September, way revenues

the to team back expansion to to been of the tap doing And rapid carb these date important the extremely has ability original that. up start and is the in projects so helpful very

will We QX of six through are one then these there's in and tack building in be expanding production it's this same there's the quarter, the dairies which as you know they about the -- will XXXX. and date process by online month there. Each by in original of quarters approximately, we're end an additional a go XXXX XX the back dairies, think

be up. accrual mostly if and there or the But we're does dairies it actually QX have cash of start mostly XX flow start in ramp some we after So show not behind. a But $XX this up months few within in be We general, weeks to six up. you're expecting strategizing XX as in coming might we It and can we few markets revenue and revenue so. approval. nearer the weeks have began by They do will you're be that to statements of picking of won't see financial our mechanism, XXXX, excess just the expect million. operational so maybe get it the online have up, quarter, a middle, months actual dairies a up next the in would all will

in the flow, middle until we there's this but is month wait that don't we the cash So process. of of before ‘XX all six involved see verification process


X, days indicated Phase those Phase you of the you those. XX the thinking deployments? that sort X previously in funding are funding of how for Phase X, digesters and you've But already know probably about I X for And have


what aggregate cash we Phase dairies, and the make are well of we'll we're will funding, $XX and Phase only not decision prepare fully infrastructure be place. X, XX Phase X, from actually X Phase to flow parts debt But of a putting later year. over in million in the X which ourselves Phase expecting that X us $XX X, not, because fund and is is on this for on two into we to million whether to decide but enables USDA Phase also we or generating simplify, break of

to have time at the be pipeline. that the XX pipeline don't miles You of will rebuild

to all So in clean that gas interconnection dairy cases, pipeline place, pipeline, in matter are place. some with up, in pipeline, adding running hub, quarter put miles don't place additional dairies gas might centralized already be a stations a already to mile have those the natural you utility, of dispensing of and XX of only renewable in

the enables important to equity frankly, driven and about renewable expenditure million that getting program $XX terms. next we debt the is our has They've project, So basically and we're already time. use is capital and existing at certainly working us Phase us is $XX continued over us funded USDA additional Phase the cash America build X very the bullish we on it and by project, for X X, XX supported extend But This available strongly months. be institutional which Currently, been flow instruments. less, is extraordinarily Phase somewhat supportive of million the million we're energy is suited to that is, execute to how already any same an for doing with expectation of out to an have our ideally would for on from and be the $XX that investors us that time. the

million And we $XX addition us $XX of place, about half look that. need so have over $XXX million our I at their the if of to million that, capital. you in in only say gives budget, And to would

to Phase very million Phase strides in on positions we're which and X, need what over Phase next by us quarters. well funded X So we make five a deploy substantially X actually probably to $XX the than more to do


investors buying offtake agreements gas you? potentially be agreements Eric, supply about think how with from who natural or renewable customers will should this


fueling Million and anybody Currently on Units our utility by per our of $XXX market the other scale, that give a certainly economics that all pipeline we to of R&D. own year course, fine to renewable are excellent, probably situation but putting sell less full in $XX in or of $XXX there's revenue order to We, gas strategy is at MMBTU attractive, are trucks it's California of in. that per don't of parties find easily have capture the yourself another, margins revenue we million think But dispensing to our the Thermal station the dispense site. project to natural to into own can it British into

internally to And able much be that whatever's it when so we're and XX use parties or possible us leftover. on use we're a who And one months. business would working of allow have as We're this dairies XX looking would as as outside then model at the mean over for two even return some natural we XX will small because fueling consume with potentially looking the in in requirements renewable ethanol internal we and on amount gas plant, ethanol potentially a the would done to with truck dairies, we're that investment, need plant. to optimize our the which all

and the dependence parties. to on return model optimize third is to So investment on our minimize


you've large debt. efforts of interest of know that debt that to sort side to low XXXX? debt in I that on something could With respect story, portion to front the the highlighted Any be helpful. a the updates previously existing of out convert would play Is


immigration already the that raised our anywhere which policy, additional rate debt, funded approximately could we're There is this are the build tremendous to Number could immigration program to is two before under EB-X, previous exemplar that primary is we million investors We of year. it's million we've that $XXX policy how million but invested administration were and we yes, a under significant $XX interest an related on bridge under what is going. some of under about so true. having situation $XX.X that to really from have And on projects. $XXX be mostly program. loan process. It's existing make And strides in dependent concerns paperwork reluctant there get approved couldn't were then themselves put all to and X% million an under taking ongoing been program, have which these one using paths we've

changed has tone significantly. that that think I

debt there debt. into of million some interest goes conversion for is is an it this upside all subordinated $XXX so rate that And where amount year, opportunity and senior funded X%

senior that $XXX would additional from perspective in lenders. equity debt debt senior Now million have it why it's that of is just we can valuable, because put of place, underneath the

we approximately that's ongoing. And X% have we’ve $XX received almost Again, of process is capital million rate. a already that so interest

of control free is The expected the they're second company, amortization. Energy actually billion there's an be with of in Shah serious them actually intensity refinancing diversified $XX new serious are appropriate am in that about current they're with carbon for potential know companies today, the easily Tesla's our and that million to expectation their below federal the I reduction. reduction money, funding that Jigar bonds reduction, we carbon would United zero $X.X we to States. is the market actually from billion as the proposals Jennifer about over one of in about few administration and demonstrate you similar DoE the carbon funding indication restructuring by now And carbon $XXX looking be of cash Department and arrangement tax XX with Granholm a year could have about Certainly, serious

So we'll we're see that have the appetite giving opportunity. to foresight they to and opportunity respond them whether and that

rates So debt goal long expansion stretched period of over restructuring at do certainly interest low would that. the with we'll kind out capital very a be time of


deployments, relatively? two renewable any running the to gas et Have back smoothly cetera you issues had those the has everything with going natural deployments Eric. Just completed, deployments, digester you've been


Everything's very filters and that renewable running, The the basically there's pushing through about that electric smoothly. operations, motors no around been it's thing. business and functionally thing gas running sort of doing is gas nice natural

mash fermentation, this plant operational because ethanol compared X.X tell running where moving very about million to very, activities around to is really you're we've gallons significant an simple So had you of physically actually no business. a

and full team, management everything. we a team So operations have a maintenance already full

difficult. is nothing here it's -- been very, so And very


Thank you.

Our Derrick Stifel. next question at is from Whitfield coming

Derrick Whitfield

valuation high a this over on Page about risks with I versus And plan your asked plan year of this execution or think outlook the at this my your market light What your greatest embedded in because are you five seemingly XX. risking as in peers. perhaps Eric, the level in first regulatory question, is view? market


Renewable really built federal Fuel of enforced, risk quarters The ethanol the last enforced the Standard our Congress way the The the XXXX. is just the here government the was whether Standard Fuel federal $XX bought of US which investment to customers renewable the cash suppliers, Renewable plant designed And time execution low existing was employs four flow, in to from ethanol sold was was under fuels same in which around last the frankly million in intended. carbon RFS and below over that corn million and carbon the positive $XX of about expansion same four quarters is further quarter. made and per occur. And structure zero

issued eventually obligations. announce actively just For issuing illegal. just the then a for combination to not as they standard were seem be to volume illegal, under administration, waivers deemed years. of political renewable to enforced companies volume be that three renewable not fuel oil last just the obligations reasons, They that didn't was the And

result. way not twice, So of the cases there's a said one X.X total the violated federal court ethanol that as two demand disappeared law billion gallons but and EPA

US under and a administration leader X believe in violate at ton. in over have cycle just of is law has federal the an our for billion and biomass that's tons per and opportunity is current fuels, cycle. strong simply that company So that we're will the the available the opportunity And don't very we investment cycled renewable a you waste in $XX

Derrick Whitfield

and wood. Could commercialization And of of for if your to plant? you the event this speak speak as sugar sugar waste any, orchid cellulosic process in downstream constraints, corn my the path the this and development, place the at the utilization extraction Keyes to starche from also of follow-up regarding


our in of are all, five economics of this First the not reflected year plan.

plant. Keyes the we business. that rapid to next if just are look our the plant you has years, expecting in disclosing Keyes not over along our [March] at profitability additional expansion So five way we're And of

next would commercial pilot from application this is to have construction next plant the and up would plant, that of after The looking be US Forest different all already is and plan. in the Service, this five step year a then pre This wood. up process US operating of scaling of this we the next be So upside two is scale the the fund to grants we the extraction And the to a to division plant get up pending Agriculture, a with going year. production. sugar be Department pilot waste year, pilot and of

the then XX% extraction from and widely something jet is up treating put is tons waste you the the hydro So remaining, just waste you and of waste to use think field sugar hydrogen economically. make edible industry your to Well why sugar reason we wood, the jet you extraction extract animals pre unless diesels. that it have then from the happen isn't is wood product process a renewable have do extraction. still do in make renewable sugars. you of the do waste And in a it's never to with as in wood can And called oils that we that plant. to through used diesel thing it and is of it's to coming And used this that first oils

remaining enormous waste an from or hydrogen have We use, for enormously use is valuable make the wood. which -- renewable cellulosic

a for very it diesel plant. a So actually and valuable it's not us, for becomes feedstock a waste jet

as be jet to occur and would operation time operations same scaled commercial our diesel the So at plant our startup.

Derrick Whitfield

in of utilization Are sugar, can $XX which numbers, increase. will I again clarify, million of this Keyes there XX% limitations any cellulosic think used be every to EBITDA with around there the just Again, be sugar how plant? not your is increase much at


yeast, plant seed corn. today comprises Keyes what that’s carbon the from or from originally that's basically facility we're that if six came sugar getting sugar has wood, about from our comes carbon to starch But that it in the sugars Yes, we're XX% five carbon of is sugar dioxide to be doing, sugar was from the to biomass wood, which corn a basically or it's from and carbon material biomass atmosphere sugar CX either that a yeast not sugars, are then whether wood actually the by or absorbed material those corn tree the sugars X in six it’s and a carbon the from CX used. care sugar would it's

them XX% questions not your based sugars, the something, linear. yield In someday produce it using it’s sugars we're breaks We're carbon then to for using six pass answer goes into the words, So tapering off down other starch, treat carbon to enzymes take to six we no not corn carbon down we physically just wood with there's starch whereas is using that the we sugar we're actually that our sugars. as just five sugar, and the well.

is there for use, percentage were of of some if of sugars. to be example, five the XX% a we going yeast modification material, carbon higher wood So

And something, it's appreciate marketplace displace can million you But $XX around. linear. million be corn using are corn, $XX those $XX that's upgraded ethanol is in savings. price, an we just It what that then think And XX% so you don't And well. of which carbon have reduction, our million so more. when a is that I buying it month costing would is the people a variable that's goes per spend in almost directly worth you intensity month, year, currently but as most we per yeast means

we're So selling at $X.XX ethanol, $X credit our tax a gallon. over including gallon per

which $X you're selling So same the then it cellulosic XX. which just molecule corn $X.XX you're ethanol, different feedstock at And plus DX gallon, a yesterday versus of or ethanol $X.XX worth buck at identification a that instead came from lower but is as a as point was intensity. was gallon last gallon, a carbon $X a getting renewable number, selling of a with yesterday of the worth six

a of DX the DX driver instead value RIN have are carbon So that, of that of molecule. you low standard that plus fuel so molecule in RINs $X $X.XX $X additional or is $X.XX driving

Derrick Whitfield

for helpful. time. very Extremely Thanks impactful. your That's


year, But to everybody, as that we get the projection. into course an people I to XX% over is per going we'll be the million five repeat our of all about that just for our five in is and closer is of upgrade next year year all to plan. XX timing, not update and It want year upside


coming question from today Woo at Ed next Capital. is Our Ascendiant


to Recently that we all Great, on you're projects made in guys all on. you do that going on you the congratulations the announced you decided you working or to an area? in EV Are progress you investment made various more expect that company?

Eric McAfee

it great And that's vehicles. electricity higher I just coal, electron. doesn't make would We're way up. think doesn't The a why? again, great over not positive the by actually in molecules use? of intensity, the is molecule converted the What atmosphere are electric idea. currently combusted, intensive was carbon use it is a everybody business than not petroleum market source We natural to of just in electricity gas. as use petroleum. make the It here's the and a in people the States a higher show the most is When in you understand electricity to electricity, yet. atmosphere, And it is probably ground either. magically most petroleum that growing of actually form it's our ends that's carbon which or a the natural recognizes We agree diesel is and up than But once coal, coal gas, of goes XXX gasoline XX% carbon that tremendous rapidly which I which in is of United made we worldwide think produces and carbon to amount

dairy to is atmosphere gases from and going renewable natural up gas, offset the So which negative our greenhouse carbon XXX the petroleum gas. an is from coal natural in intensity

of it eaten help diesel. electricity the motorcar animal, we absorbed electrons. comes that from case, petroleum waste plant, do, on from going captured your gas cow, was cars coal actually running atmosphere from The is COX the actually carbon then by from a that's make but carbon electric biogas dairy and converted by that that that actually the than or you you gasoline this to So in a motor this into and we natural natural Tesla the help or how emissions which more be, cars greener more trucks lucid worse because emissions, Tesla and and are gas, don't into

the the the with the you environmental revolution, And Tesla in So on adoption order to car market from benefit word of their I'd car is are expectation coal. carbon don't increasingly actually because will electric running middle any electric molecules say a necessity we revolution, expand get negative that our almost tremendously understand believe truck. biogas those in the aligned electric car and

and more immediate space, more and heavy, batteries batteries and direct, more And application. a is batteries charge. time that up the you give me let to second batteries are important, Now are take expensive, take long

two So up if of still they're them or quick expensive, charging let’s take still well, space solve say they and one are still heavy. you they

You cargo in difficult to or got the even and delivery out before to that really are trucks highway carrying solve be displace those that amount batteries. A like to that long all are cargo you have Class of haul trucks going four of trucking heavy, for that's to substantial willing charge. expensive They're

batteries train, energy electric train. have drive to that drive But the the what powerful torque solution train, Well, of to So carry very efficient, the that is high solution? your hours drive charging cheap minutes. is or low place dense park negative, have truck a that hours having fuel instead you finding Have exist. vehicle molecule doesn't day, some that hours a and renewable a for and station within XXX% every that few carbon power can

is all positive the made XX% we is XX which XX which corn gasoline our ethanol, world positive carbon from actually to know there's from then in probably cellulosic we're the ethanol, lowest current There's be according gasoline what ethanol and intensity with really only oil, ethanol. corn. negative then intensity And In Aemetis we XX% to So intensity. from carbon And crude that ethanol fuels. know diesel than carbon to molecule? three United States, all carbon there's is studies, and the and going lower the even

if readily your XXX carbon, So combusts easy understand, going ones range two engine it's from it's three only to on renewable and needs extender tremendous, of the molecules when are no no be XXX you What the ethanol. non there's one farther to issues. to ethanol other has is molecule know heavy unlike XXX available the cheap in it which -- miles, truck, go fuels, that Because vehicle sulfur and be really that has than is them should and to it or gasoline, pretty called ethanol. there’s has sulfur, over dioxide, number of other

ethanol engine, zero because this the ethanol, this renewable So fuel, in what's different if molecule of negative, to an emission you're vehicle going these going announced all even low natural be to what it's combustion we run a is ethanol, actually or truck, very be? morning, though carbon, an It's to the meet create to it's could and not gas, engine be going the emission, one going emission -- carbon low with emissions. internal range zero extender very does low be standards,

needs take to our the so, industry you're Motors, or X,XXX if the for extender be ethanol to gas part natural includes a stands vehicle kind So then one just have is on that is tank into in in they running go you can Why? very emissions, engine electric can the everybody off holding to by engine, miles extender go you basin, vehicle. or ability which means something destination vehicle new in pick the just restricted fueled fuel of have on run optimization going miles your all you Louisiana last requirements, relationship to your your hauling low emission to range an just Nevo renewable zero the turn strategic LA to that batteries when if XXX% miles from operated come X,XXX electric and optimization. Because zero your and to air you where up ethanol battery or and go to urban. you urban range port to around load is up LA emission you range Texas, it lighting I have a they areas, by renewable call point XXX an And if little for renewable the emission. and it zero low appreciate your extender, head of cost The gas. drive up your vehicle way which natural

order we producing future a future, we bridge, that electrified an not temporary to we're is infrastructure have an think what electrons electrified between as range have as the can it in extenders make well option, So make. is we how required you not the of


Our Marco final Partners. at coming Capital today Rodriguez question from Stonegate is

Marco Rodriguez

wondering just bit in more five that was little sketched on presentation. could if year out your have time I you you guys Eric, the plan kind maybe a of spend

timing maybe of CapEx particular total little necessary helpful. kind the bit you would Thanks. can for maybe if you that would frame ramp kind guys CapEx of help Just talk the about wondering a to be of be that plan. if can that you And


the balance line year a out five plan. put haven't sheet We with to up

working provide calculations financial interest for guidance in just We be and did in will else. terms on everybody. include that to projection everything some all of those doing We our

just XX energy the is described numbers through income America low renewable derivatively which statement, but it USDA as for is discussed interest business year it's renewable the Dairy gas, rate. very we basically think about there program million $XX So the are on natural a is to unit using blocks. basis. funding, and about we And funding limited

five you lot given So and loan of a flow they you because against XX amortize you But years. it up it so is senior cash easily then say, are in get that cash out put, from over entity. just building a strong, project, let's a of dairies

We dairies do to what and So the next do we cash? use the five dairies. that it with fund next

can essentially, get just from for and project, we're back the as mechanism a $XX million million first So another it's fully using or funded go needed, but million funding the self the debt. entire on USDA $XX $XX and

interesting preferred just stock. preferred parent structure, automatically shareholders related interest rate flow by our there's company is in the redeemable given no interesting to or our no cash no. an dilution and is is involved? it stock Even at all. factor, There's is is, kind to more So answer to the CapEx a shareholders there And but our what's to of the me dilution substantial

et any million and actual financing parent in that cetera. renewable similarly structured, and of take invested of So The a entity plant it's diesel about the $XX you the see our jet without five projection consideration cash. numbers year dilution costs, self interest company into we've

go assets, the ethanol site, and XXX buildings additional square site for plant some of have of feet portion XXX,XXX it. that We where is acre example, site that has would on

to contribute requirements that free complete without sufficient additional DoE have either our equity So to XX on year or equity, a financing bond additional we'll based to goal assets any USDA because our is device, or And the tax analysis. funding to use that project. meet simply we

in equity of a So as extra excess million equity, $XX be as the X and that would would plant renewable just use take required, we've already, any do being the which to if year, Phase expansion. to X the funded fully and described flow, jet use diesel Phase that. be cash is

So to operating cash unit additional from that's unit, a debt to first just it's second second plus plant going the an the use flow unit. build do

funded to And shareholder without that the XX instruments, is we intelligent required which five the years, fully out was funding net debt going using overall is development debt dilution we But have value. the we're company our maximize And almost that. for million this There's million. no contribution no that again, in we’ll And having shareholders India, in parent the parent to in by to all. case additional So company. $XX free all place. built gallons. way, to development some that our we'll and think expenditures funding, build really, by dilute plan at is to there achieving business capital put


question from have coming Securities. Jordan We a Levy at Truist do


thoughts we that plant kind and things? flow to side how fitting of you get renewable into see outside the wanted on the technology and potential of the renewable renewable of quickly on Just news hydrogen lot hydrogen a the into your for of feeding structure jet the see diesel,


should whether renewable We hydrogen sell seriously have market. would produce wood in hydrogen and the product we negative waste that just renewable from as orchard considered a carbon we

Directors less we industry large on than with California that and of of could We and Board that got years, determine our grows. be significantly it there in We of time future, their and the rollouts physically dramatically And four have in the vehicles of have some in would stations. met less amount would stations base. have betting a exceed shareholder two, is good companies sense vehicles, and some analyzing after our the automotive fueling in several the market than leaders three, hydrogen what and one, produce determined hydrogen were we the XX are fueling timing it, And market vehicle that the we that of hydrogen needs. their renewable whatever actually to that XX,XXX

nonedible take decision very use Keyes low oil refining our every company in oil, world say, our a corn was is would be called as used and familiar complex So ethanol oil, very you standard inject to to hydro by product, more their guys byproduct which use and a waste carbon, at plant, instead proper guess a technology to I from there. it down the oil hydrogen corn treating that into are distillers single

up can a And approximately we decision gallon billion and and blend just no business low XX used the a time, in to made wall. by carbon displace With that US. a wall, diesel. molecule diesel jet California what billion for we trucks its credits diesel there's X California standard market you money energy end of -- And rest gallons to in are you and with federal single and every extra carbon/negative should the spend than RINs renewable carbon. get old new blender LCFS that It's loans the for any happens be with just no gallon those have rather of of the a it, for basically carbon so

billion And overtime, And policies we market, markets go we that fuel aviation I we'll XX jet gallons. global very the fuel. supportive for a made rather approximately after think so see determination

renewable make So unit believe we'll probably total enable This our of very, scenario, up up the add in carbon low low carbon, we fuel have risk positioning us our aviation because so high what is our probably which diesel and a petroleum jet our with is had those world, of because carbon to I carbon how us have just XXX to content interest same specifically a sustainable be fuel, XX% the in positive we and certainly lowest SAF airlines SAF petroleum is to to a would to is capacity. that very decided with is SAF of SAF. And made hydrogen, expressed the hydrogen intensity levels negative. lot from

to of of to time, the we finds its rather lack exposing market with could our stations to lack that market. vehicles investment than bring to shareholders of extra of kind a have value a and lot energy and to a growing money market, slow be in We as the way what of be a the make So dispensing large market. in hydrogen growing decided


I Thank would floor we management today. time like you. have the That's all over closing turn questions the for to back to for comments.

Eric McAfee

for Thank for presentation the have invite audio you, Slide Kate. next talks Thanks, listening the everybody investor describe years. the be segment has company it. plans to site, I our but shareholders do earnings we slides the that to has five be appreciate number our what you focus are Web And like as also specifically of well the of Web plan. on today. site. there would five I you as our the informed and transcript. of over XXXX, to Slide that And X will posting And do X an We a year well about I that our

Please Aemetis shareholders site And you it and to today's call. phone attending a an think the conference to also for you. you written me the of business section the as earnings Thank Investors earnings will the talking version find Feel where look earnings get free company. -- to update. make discussion. and forward of time possible, would review email much and more effective I I Web will Aemetis visit we have we'll on in if the version this audio post and Aemetis send



event. teleconference today's concludes This you. Thank

You may thank disconnect your this lines time, at and participation. you for your