Aemetis (AMTX)

Todd Waltz Executive Vice President and Chief Financial Officer
Eric McAfee Founder, Chairman and CEO
Andy Foster President of Aemetis Advanced Fuels
Manav Gupta Credit Suisse
Derrick Whitfield Stifel
Amit Dayal H.C. Wainwright
Jordan Levy Truist Securities
Ed Woo Ascendiant Capital
Marco Rodriguez Stonegate Capital
Call transcript
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Welcome to the Aemetis First Quarter 2021 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, today's 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

Melinda. first Thank review to Welcome you, Aemetis conference quarter call. earnings XXXX

Founder, to for earnings Aemetis; Joining and today's filings We of suggest for the Commission, the website today earnings of Fuels. Eric recent us at press and available our previous Exchange aemetis.com call call Aemetis Advanced CEO on today's Andy and the McAfee, of for visiting Foster, press review presentation President and conference or is Securities with Chairman The Investors corporate the presentations, calls. download aemetis.com review is releases section website. release,

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

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

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

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

$XX.X to Now I'd XXXX. the quarter million compared million, for quarter first XXXX. like increased the quarter of Revenue results to for $XX.X review the during to first XXXX first

the North in per Our the XXXX. compared first first increase price a XXXX quarter $X.XX $XXX,XXX per and the in experienced first first volume, the from an first XXXX of average XXXX of the than quarter of quarter to an steady same XXXX. America the per an period selling $X.XX that to $X.X compared during ethanol loss $X.XX with was year. was during the previous Losses XXXX of for during per Gross delivered of $X.XX quarter price operations resulted in gallon sales increase bushel the quarter weaker first corn to the bushel QX gallon, million margin from to XXXX from the loss quarter during crush

$X.X crush XXXX from XXXX, quarter during ethanol and execute the XXXX we Within expense the XXXX. subsidiary the including between industry. $X.X fees year of million XXXX, periods. compared to million compared million chain the quarter to first January million Series during in by preferred period five during in Interest XXXX, spread ethanol primarily first professional than margin accretion in the quarter gallon pricing improved is are per supply plan. rose in Corn the from $X.XX quarter crush as XXXX issue the operating more units gallon effect first of today. to of the $X.XX much per ongoing for A ethanol the an increased the supply quarter from to LLC $X increased an in the growth in million $X.X loss well XXXX period our Aemetis Operating premium during the as crush difference first insurance driven Biogas -- and the which $X.X as same Selling, for expense, first expenses the $X.X was the administrative for quarter million during of loss increases, to general as the same compensation

$XXX,XXX million preferred XXXX accretion compared preferred recognized a Net at stock the of payments the of first to for first end the Additionally, compared million to during XXXX. quarter on repay XXXX, quarter loss fund of $XX.X its to Cash completes our the $XX.X the of first the our quarter XXXX. capital review $XX.X Aemetis during XXXX. for which to rate capital first was at high financial first Cash loss was stock quarter million of the initiative the debt, the quarter used for in increased first $XX.X proceeds quarter net of operations. million invest Biogas quarter interest for $XX.X $X.X XXXX first million and XXXX. strengthened working $XXX,XXX to compared from of million of close sales, projects That

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

Eric McAfee

Thanks Todd.

I website. was from Aemetis can XXXX, viewing you discuss encourage XXXX. of the Aemetis which on aemetis.com we QX the the in found consider presentation, homepage As results the founded corporate be to

about for have sanitizer technology wells, operations in products renewable plant blended India. per in wood a distilled low corn California, is ownership the into ethanol intensity carbon hydrogen more natural have for to to Renewable plant sequester owned significantly intensity from jet health cellulosic renewable byproducts our and we by refined fuel safety high the XX% replace reduce in injection carbon and in and and for products and four carbon biogas, the original dioxide the dioxide their located fuels of gas COX enhanced negative our and year U.S. waste biodiesel, sanitizer, into oil and processes. including operate carbon own gallons fuel XXXX, on we of diesel products, maximize lines including focused to capacity using plan since Keyes, carbon including converted We production glycerin, intensity shareholders products common grade carbon dairy hand XX in California, of our and are and year XXXX, safety high with and diesel began transportation We a and and XXX carbon that Modesto intensity ethanol grown of business of which health per of than development the ethanol, negative producing value gasoline. stock production other million Included Aemetis. with XXX gallon million largest when in facilities the ethanol months, near mid-XXXX XX retrofitted plant leased portfolio alcohol,

built, per own City Port capacity also million of India XX and refined the Coast Kakinada. biodiesel East the and a year We on distilled glycerin near biorefinery operate gallon of

and the Chairman as Manufacturers on the major XXXX, Director Association, the since the serves India five Biodiesel biodiesel our founded Managing India in operated country. have We of Association in of we producers behalf

to projects, time like values our as the U.S. by the India enforcement during culture Before well comment difficult federal discussing laws pandemic, production fuels about and company, of and plants, of as the a to social and our our renewable of lack of businesses, the in impact development and and I'd regulators. due environmental COVID the the

We are to a working company who spends their communities. improve time our

times crises, rely businesses, that several external extraordinary contribution Despite to truck hundred on create people they to a past change. a California biofuels, worldwide. our business. policy expand resilient families produce of our among strong worldwide, jobs, India a and sustainable and that we to impact that as at our maintain supply depend the in drivers all and work expand us we work the move And team uncertainty. of feed upon together climate corporate as feedstock sustain biofuel and our seek Our to From that XXX% plants that support the teams, have to the provide Aemetis supportive every build supporting to and products financial meaningful company our despite hundreds We positive circumstances our house plants, maintained day, the our as of such production of value and changes global grow employment reversing and Midwest create who the the $XXX million farmers XXX to members, operate that to us year, culture workers our of business. well events facilities by crops and during investments

executing easy. announced as upon our stock by QX same unique a today. company diluting responded with Directors. for XXXX. was are During and Financing In positive to position team tirelessly accelerating as the and downturns, crashes, a we our our without sector. XXX Board and It values favorably California recognized extreme Aemetis leadership the management are execute intensity foundation that trend significant financial oil renewal leadership in renewable to years company administrations an past by of have to and multiple XX-year respect, federal has overnight decade this endured to Street system and renewable our collapses, we biogas hard the But and process price in XX commitment growth our heavily plan has the Though Recent say XXXX time. was business only been not Aemetis our uncertainty, in undermining market, zero than five-year market of team position sacrifice to by a the by we now and market hard build took worked to business. simply work value the we below as present carbon held become are from the that shareholders XXXX years, active the laws revenues and longer culture that XX and build leadership recently the in was has like million our market this goals shareholders federal fuel took energy work about political that biofuels founded success fundamental for to Wall and stock changes of of the

Andy management company with XX of founding Foster Gupta Sanjeev in the tenure and our Head team has than our joining President of in at XXXX. XXXX the entire top years company International the joining more during Our

of Chevron does Board XX formerly member as Aemetis We one the Department our of Directors of U.S. years, Agriculture. of the two at serving members were have firmly long-term Secretary for Corporation. And executives Board serve

independent of served public billion and the lead of had Officer for billion Chief X Chairman five revenues, which more had $XX of each as has the director largest than Financial revenues. Committee Audit Our companies,

capital, that debt has our external of maximize a many of deeply for financing. diluted their challenges into personally past Aemetis decision has face value Aemetis neither, This in dilutive growth I've the the way. need years, decided regardless convertible growth through experienced to financings benefited execute of compensation, equity the convertible allocate shareholder we protecting guaranteed since achieve equity million that of to comfort, external long-term that executive of our allowing projects. since dilution, or or been receive no debt company. avoiding losses XXXX. for our more build funded and from guarantee debt employees making of have by vision value and committed received for dilution, done of to year to options shareholders, benefit the fund has transactions, with highly to sacrifice I've revenues. To and or shareholders stock company many shareholders management shareholders In the $XXX $XXX funding or competitors funded than and personal to goal compensation the Aemetis In minimal offering have the our entering options highly the inception my to XX as about of team for have a ownership We working challenges the come the years every million

the are benefited McAfee However, the dilution I have I through from equity our company large like avoiding holding of company Capital. and other my since largest shareholders shareholders, wife

to to of that in have XXXX $XX of our debt. high reduce refinance further bridge significantly company have shareholders guarantee bridge have $XX XXXX that strong opportunity financing earlier. way received in XXX flow a the value valuations The funded equity end million we well of senior guarantees with But past by more of I $XXX growth. upside was the the Aemetis recent in million of will I cash has million. operating QX has And This participate financing at personal spoke demonstrated XXXX reduced commitment our valuation that we're now still long-term place our cash the high potential, interest the and stock the values our since to of personal than during million to consistent proud had is on QX While related of months. senior my achieving I'm bridge balance the higher great been new at Aemetis. or

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top shareholders are aspect company shareholders products to during our even funding after achieved our QX own like repaying company. significant there of our meaningful XX, Aemetis. at $XX As progress our Aemetis, leadership. million high who in shares employees were including rate in at a I of We Yet, approximately bridge only with interest and ‘XX, million of mention March outstanding XXXX, our we've equity financing. the XX.X value to the our priority, shows, serve sheet balance communities would already culture as another

employees the which COVID of and affected in the company. year been have wave this month, by has India in every our past last with XX India pandemic severely impacted family Our COVID almost to related another infections lockdowns

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

Andy? ask President Now Andy I'd of America our natural businesses. gas North and like to to the renewable Foster, highlights of Aemetis business review ethanol

Andy Foster

Eric. Thanks, renewable producing below renewable production including zero carbon of carbon products, fuels. focused we're negative At and Aemetis, intensity intensity the gas natural on

bio-economy credits carbon which ethanol many the under Eric with value the Fuel circular to materials waste operating low example Renewable credits, maximize Fuel spoke California plant. products tax renewable gas Carbon designed is costs that of our and while synergies excellent IRS have sustainable Keyes Low XXQ dairy as project, An is Standard by carbon Our using of natural feedstock. of Federal a our the Standard, reducing

pipeline process pipeline California. and California, is to fuel in XX send air the Aemetis it at Aemetis enables gas. that in operating grains fuel intensity the by the producing can interconnection the distillers of compressed in The customers is Northern ethanol any at covered law biogas dairies to reduce supply to lagoons build per stations the use by sulfide. to pipeline ethanol, of in plant, renewable in uses XX digesters via passed currently year lagoon be connected biogas plant these the it ethanol of and two XXXX. carbon X and absorbs at production ethanol. the cars, produces grains fueling fueled wet that that Keyes from in owned or digesters about dairies to compressed wet significantly during distillers from of production anaerobic waste natural that the as The biogas to production Our the that RNG gallons also PG&E cleaned Trucks carry year utility California then as at X-mile as air that in through remove This dietary compress pollutants us system emissions up, pressurization, reduction -- bio-economy and diesel renewable a directly we owned methane fuel This station gasoline known that unit plant fueling the day plant plant also is dairy COX we In Aemetis and but pressurized XX% ethanol is by scheduled dairy our and of which begin to we captured generate from damaging uses Bill central ethanol significantly million a ethanol to transport through community. produces sent hydrogen RNG end covered first at Senate delivers atmosphere reduces process a trucks to agricultural and XX biogas the and dairy waste our pollution. dairy feedstock sourced unit reduce to station known growth, be September the animal and pounds dairies methane cleanup productively per that construction that by building RNG dairies RNG feed. is cows throughout at biogas' the buses million end negative processed the biofuels lagoon is warming mandates used trucks Biomethane in of to dairies, facility methane produce dairy end boiler we're gas XXXX XXXX. our the Aemetis to XXXX, to is gas plant an greenhouse carbon a dairy a form Keyes from the local carbon the sustainable times RNG or other large natural emissions, This gas XX% emitted can replace or pipeline to in commonly commonly a To XX our XX as dioxide Methane up including by can more natural the to more are Approximately Keyes very XXX,XXX circular project, on-site our Aemetis atmosphere. others. come than and owned to renewable We is gas natural of used ponds emissions than and digester waste by where completed cows. planet's upgrade a potent on newer California’s RNG that of destructive approximately feeds in farms. our a energy

the Department renewable gas. of Keyes Today, of of Aemetis California biogas dairy natural issued the grants XXX more positive about California the of biogas $XX other XXX The system, we carbon a our and Agriculture, a gas. to the utilizing production the QX, Air ethanol for CI compared development than announced government fund after During Commission, of Resources intensity work, PG&E financing reduced and petroleum $XX and carbon biogas equity from awarded Board our a Energy pathway agencies fuel plant year financing and has XXXX, million project. to score intensity natural for In California a negative for project been million for

for by redeemed until by allocation XX% cash the free equity of to the covenants. operating costs million flow be long-term $XX of are In XX the expected cash the of process guaranteed out XX flow flow is dairy XX-year addition, biogas we in XXX% preferred automatically and generate USDA agreements with program completed Energy funding mid-XXXX. from scheduled year generated is in obtaining The contracts of from to preferred is XX% investment biogas $X which free the will operating fully project Aemetis million debt investor of flow it USDA every Renewable of under operating after of receives operational $X dairies. America by of loans recovers preferred build the that XXXX, for XX-year $XX cash This per complete redemption than inception, equity under cash The an subject than to receives in the the year [loan] project more of dairy more is Aemetis project supply dairies. invested. of when for the

XXXX let's a COVID demand, Now despite ethanol caused our corn progress $XX ethanol second XXXX. California in from QX million lower starting ethanol lingering half to QX increased of in significantly plant. of at costs moment in issues take the discuss Revenues increased to early production while that

Standard. January than have Renewable the in EPA now the Fuel this late XXXX, to than and and XXX% new the However, accelerated price by administration shown a ethanol of is as rapidly commitment year, of more had higher QX enforcing

has to began caused for significant been and railroad at XXXX, driven capacity particularly recover. severe ethanol demand winter As QX in ethanol system to by of the to order in demand by consumption ethanol has as following to once to gasoline but and producers, work. production the and Keyes plant ethanol more major vaccinations that as driving mostly weather building been Midwest increase projects reopen ethanol California, to began in increased cash of disruption completed. year availability chain Midwest to in meet supply start rates the the activity running to while economic flow the economy million due has Since The Californians sustainable began full mid the operating Aemetis fuel at the approximately used they reflecting by QX, per increased plant return maximal $XX

dehydration First, membrane completing by our new million will the from a use gas Mitsubishi powered a funded gas natural alcohol equipment. by installation of the with million efficiency to carbon our fuel intensity system $X is natural a to amount $X.X will zeolite reduce operating molecular electric partially petroleum use that an of This dehydration energy replacing upgrade and which unit the at significant plant of sieves, reduce grant. electrically

gallons plant. providing load Second, five will storage, alcohol and capacity high for out ethanol than the steel electric system beverage, and storage our new by for new the tanks which at stainless increase flexibility XXX,XXX grade and of USP installing dehydration more operation

to of by $XX million well. array And partially panel approximately MVR reduce a ethanol natural to hour, gas to result When Commission pumps solar CI at grant. pounds completed, gas $X an natural as year using upgrades system and funded primarily consumption system gas million significantly building new per biorefinery produced double-digit of efficiency natural our also, cogen Energy fuel California high while And combination equates per costs. this grant. steam are optimizing the microgrid and primarily $X battery MVR designed expected plant, Recompression, will XXX,XXX the potentially Keyes. fourth, the by our million also The petroleum which PG&E power and membrane applied funded and Commission sources. process Third, zero with at driven operate at California zero power energy for reduction an a California electrically driven reducing dehydration Vapor motors throughout reduce $X for and known electric we've Energy use, as energy solar grant pipeline Mechanical and gas used carbon-based system, renewable operating gas installing by utility further use steam plant -- fuel while for a in backup intensity natural to replacing million designing electric transmission electricity, save of The a in efficiency system to the eliminate solar reduce up by carbon petroleum powered these the is natural to CI plant alcohol ethanol -- electric the our in with

Eric McAfee

Andy. Thanks,

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

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

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

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

coming renewable of of subside, change the well related rapid to crisis COVID meet wave a and are second plant, ramp in of shutdowns delayed has The biodiesel for purchases government quality as the hopefully production months. the begins COVID to revenue goals current increase, positioned India air up the occur facing and but weeks large at India once we climate

our further of refinery, of allows part agreements Though known air Riverbank as financing. our including as we project forward air near EPC ATC ATC permits Modesto with We're and achieve just Aemetis continues the achieved zero negative carbon Riverbank through diesel pleased and renewable Let's development fuel discuss significant amendments Construct. to XX carbon biorefinery separate contractor or are Authority the that engineering, engineering, the using issuance carbon construction a under final otherwise zero project Riverbank, development To California. move for planned jet the intensity in the hydrogen major to permit us at milestones

During revenue, flow million and use waste such Riverbank plant biomass designed approximately The from and as to to and $XXX to renewable cash annual forest is by Koch diesel, the per per produce is produce hydrogen, orchard wood five generating $XX manager QX of has to cash year development an XXXX flow. to expand pace year positive the Riverbank XX $XXX cellulosic million jet and production. waste positive than dead gallons the generate more other and of The of production the signed diesel toward of to of revenue of treat at hydro Waste oils will has to drought per a challenge of and fuel. wood as plan we forest XXXX wildfires. other project management renewable million produce designed million accelerated Solutions EPC the for of which diesel Riverbank plant and our and project has retain damaging as more than jet become severe year We California major prioritized and Project XX part site facing state million as to $XXX agreement plan which construction. jet impact year vegetable gallons million year to reduce is renewable a wood

Technology be sugars VP years The Institute which Development J fuels. cost Aemetis to Technology the to important intensity ethanol. remaining worked Headed biofuels other U.S. a for be non-commercial to Vemuri] BioEnergy used to biomass hydrogen as negative the produce expensive proposal used a to low and awarded as lignin lab of sugars notified three were and carbon displacing to Department sugars process $XX to patented extract orchard to follow This development of Joint locally Let's California can ethanol brief that federally the orchard Bay up from Technology plant wood. to carbon value collaborative cellulosic project of California has grant cellulosic with then of Energy grant intensive a patent. Group. our the sourced Development was grant testing that Commission production finish feedstock treatment Berkeley, vegetable by Keyes Aemetis our to million by to from team a funded to waste Last starch and produce produce and waste from high oils forest process and forest with Aemetis jet a exclusively [Gautam and $XX renewable production funded the Dr. been work apply and the the review years forests. in granted we Aemetis, for hydro million A other million for The partially in wood and led for in fund was Energy feedstocks. corn selected Development, extract million wood licensed plant, $X Aemetis $X of produce the diesel Friday, and can

generate operations than fuel. feedstock diesel the diesel are We renewable corn low plant. costs starch to renewable is from to used intensity gallon extract renewable expected from when In waste Keyes ethanol per more and in diversified replace at Riverbank expect natural carbon sugars projects becomes commercial cellulosic jet when waste ethanol renewable pre a These negative wood sugars our $X to wood low plant dairy carbon of operational. now jet and implementing gas portfolio summary, to revenue Aemetis of and

well maximizing new proven the deploying RNG rapidly new LCFS, as significantly intensity credit carbon renewable projects RFS and by to reduce both fuels adopting and input technologies thereby and are increasing of IRS XXQ values. as We costs, value and

remain will for we for and plan, we to which factors, been solid, and values upon result our COVID building positive significant opportunities challenges long-term empowerment pandemic and we have the and remain believe for upon making exciting executing unwavering, despite five-year the of contributions Our external growth employees, Aemetis. the other commitment in our serve. a foundation communities company's and to value shareholders, The respect

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


McAfee. Thank you, Mr.

go of a we'll Credit Gupta with [Operator to the Manav And be question-and-answer conducting We right line Instructions] session. Suisse. now will

Manav Gupta

is here coming XXXX, be going should when business question EBITDA $XXX first to your my think able the any million there the near-term, in dairy worried So that is our not plan, up Is that growth be I at growth Aemetis XXXX. hit $XX RNG million will reason those why I dairy look and RNG. guidance numbers? from biggest growth to is I

competitors, an reason, LCFS, you guidance? could there that issue is you So think any hitting wins, why with there be

Eric McAfee

next month frankly, barriers up execution the up permit pipeline, the been -- the full as And some to our signed key dairies next past has Quality Act time, the have the California the announced in this point the At for of within the we over we challenges for the Environmental granted. which such removed we've dairies already through contracts year. that XX with are key

So I would us. say the key project challenges are behind

Renewable already. $XXX about biogas in commitment USDA USDA million on loan, million have dairy letter this equity you We the signed program, are process, financing of $XX we America But that we've invested already. executing may for Energy separately know

We have at in debt subsidiary no all. the

phase That well completion very from common to It's a that application program the process. three is next the is funding so a very program, months we're into to and it's process, USDA six And refunding. typically fast.

that, roughly move continue that us our wouldn't I would continue that that. after XX forward, any to months. assuming allow see And execution the interruption program would expect next So we funding in to can over

similar needing So additional we contributions. equity really don't have or to exposure

very the very think I though It's fuel free should municipal is markets, renewable refinancing a there that be mention today project seem other very, on I forward. negative market cetera this. to And that a is carbon et tax and this attractive the at the agencies way very, excited project. lowest about are XXX. the

will USDA used. other scenario so. But I the we be or next financing be tax executing a So financing anticipate on after see free or of sources long-term the which could that will I for year in

I a this So milestones, we're are financing really those time. on I The just track we're on at at execution believe right well point control. at items. under project phase think, And --

Manav Gupta

capture sequestration, what guidance little out guidance. not is the the is the carbon bit which Eric, a in and And after then came

talk your that utilize. could of you and size you how capture I if much opportunity, what But the So can than you understand is from as can perspective, bigger sequester. about the much facility

an is and capture it third-party to So ground? opportunity. what capture put kind get there mean, the carbon there opportunity third-party in carbon of opportunity is I to

Eric McAfee

of X Center able Carbon sources be in at XX Capture about carbon, would The for were XX identified emission XXX,XXX tons we to Keyes about dairies. per at California COX tons biogas plant reviewing Study our our that University do plant metric Stanford the correct. You of COX million injection and year metric year sites the produce per the itself of largest between carbon

tons XXX,XXX emitters the be the year, next of X about parties, million sequestration. Stanford refineries would for under which minus study So most carbon that XXX,XXX identified that be attractive per metric leaves third would oil would category be

us piggyback refiners had work basically EPA the process oil major a meetings on have We and going appetite extensive strong is already California, there we're to with in through. with that

X One from or compared Midwest being I Iowa $X.X of another pipeline couple opportunities we million mean we think just the X. matter short, a I our minimis, or with of yards, unique our the be our basically costs are mile be pipelines go dollars will pipeline had North to a so go $X a have X, COX insignificant billion mile Valero billion mean -- it’s if a would or Blackstone -- Dakota, maybe proposed. X de pipeline to very to that I either is very, In pipelines, being XXX of and project, proposed couple

for wait biogas the to have for and may position be unique move quickly that already in we cetera. opportunity third would permitting COX truck, us don't essentially very execute we you the rail in note in built, and to well to an via parties via use These trucking. et just just we're So have or

fuel unique we trucks the very own a biogas, you use. own very, to economics you that's So of look with can biogas. we're if see at fueling in can very as cost And be a which low our price position our in

with is But of oil agreement what more as the And quarter. to the refiners. over a And those LA plan frankly, refiners. the ones arrangements Bay an equally work the us complete for for focusing economics our but we're in to is would it's on see these, on Area. it's almost next So essentially I offtake expect partnership well relationship reports


of go we line to with Derrick Next, Whitfield Stifel. the

Derrick Whitfield

Nevo there's afternoon, your relationship with attention and your Motors. focused Eric beginning for all. Thanks and been lot good prepared your on recently that, in Perhaps a culture your thanks and company's of values. Board undue with And history remarks also on

listening put it For in the could you investors low in benefit in Nevo call, your speak Motors? speak perspective? you also the investment opportunities cost of that to in today's history then see and And to

Eric McAfee

diesel there extender XX,XXX other over a we companies as the biogas gasoline the producer. virtually an gasoline. look and carbon is range pound you below we they to the why multiplier, a if down Sure, large a electric Likewise, Class they pulling produce pulling Aemetis have they're the truck. to the trucks go access simple displacing monetize gasoline goes like the the out ethanol are reason, truck torque, infrastructure produce, the even renewable all it's today, displacing some in trucks, build produce, order for have actually, ethanol very are truck. trucks, absolutely. valuable in at ethanol don't Aemetis don't when you power. why we we reasons And And renewable strongly for frankly, zero And in to there's diesel down engines it fuels see a -- road add don't us X that truck yet much transportation we more benefited trucks, is that's are marketplace than And no diesel into and the the use road. engines, don't have

So in X as biogas companies. founded to companies, biofuels have over I as to we advantage background our supplying the closely capitalist oil Valley, what a fuels. excellent laid XX look Pacific venture discipline dairies we disciplined at apply in position producing molecule. I about to XX we business, producer were as about is and companies, X that our companies, think ethanol the funded Silicon were I take have Ethanol. ability of And negative a four an our produce need public out these including our on carbon a pretty to focus presentation plan wanted

didn't into in ethanol trucks the it electric biogas trucks. to the long market to you our go extenders, develop opening with extenders, California, well biogas so into gas to capital, because electricity with and an range invest expanding somebody electric U.S., to as as can electric And the be as range ship electric renewable biogas us trucks natural power with ability just converted needed entirely trucks know trucks new decide, in for technology take ethanol and deploy for

often the that's future. So

up can So mature that in enough companies ended other related we being to equity was of we put one a about it. value this cash get management up my their et that to do, relationship we we bring excited portfolio we the with to determined encouraged of And has that, that cetera. have have actually that Aemetis that any their because lot got though active them we they Aemetis very felt to team and startup, don't a not took business and business should

a acre ammunition an facility XXX say, Riverbank have of that X to what, want XXX,XXX lines that manufacturer akin were We army production used buildings do. truck was be to to very let's square plant feet

but much, X,XXX available. We have foot to the portfolio also square happen it this. is company headquarters here that of have office the about undertaking former space, It's building not we

a we renewable there gas, to truck a is asset natural unique do found company natural And able of just which we renewable that be were use. gas could so negative carbon a including supply to number things for

is we a income exposed any is statement our does XX%. If balance XX%, exceed shareholding consolidating have about it operating exposed is debt. not losses. to our the sheet that So consolidating to And

And have statement wall. were and our equity some in But the blend income of I opportunities trucking fuels protected negative. basically electric And that the range and at extender maximized from business. look if in or our downs the need upside valuations might notice have their are execute removing the ups you sheet T-U-S-I-M-P-L-E into autonomous have. we and that to carbon shareholders so amount deploying has rather marketplace think That's assets balance significant. Nevo are for that Motors emphasizes with And we any Plus.ai, TuSimple, we to

Derrick? X We natural renewable the X road in or gas that gas gallon gasoline with natural question, drive literally of Does gallons renewable So the and have put to of it trucks. ethanol your ethanol. into of down or we ethanol up a truck single can gallon answer don't fill

Derrick Whitfield

comment offtake in And It project did. to a zero carbon focus speak offtake commitments? in your to Could project. as Eric. when Thanks, then I to on position market on interest be that announce simply you wanted my follow-up. and you

Eric McAfee

we've our next not pick very several high We level oil expect no say said marketing close companies are moving months. We refining that the in synergistic major able diesel to they're with a to various of And interested. contact business. been presence that points at we the largest -- But is of companies. diesel don't relationships are that currently of have be strong I'd had to easily the should very, seem companies has oil major I multiple lawyers renewable two control that which one would certainly What California. in is I'd documentation, do paperwork and be the oil among we've almost say with California. able suppliers in in have at the strategic pace where

to And that. on looking so we're execute


or comes from line Dayal Wainwright. Our question comment next Amit with of the H.C.

Amit Dayal

recognition the And this dairy are deployments, very some that give many But listening revenue remind to you can you you know now? deployed for have on investors if respect color the With on how us digester provided update looks. an helpful? be I could how in, would

Eric McAfee

Sure. don’t there? dairy pipeline. We've And you a Andy, over how why two give, mile completed X digesters, we're doing

Andy Foster

ethanol sending and two we so plant process currently gas Amit, operating have Yes, that for the energy. are to

the more through we'll days. will in quarter. XX the We call third the We'll in or be are -- have next that five mostly construction either begin five on have permitting getting next to permitted that that XX

have the up plant. we'll construction it through year, have in CNG station that's hub pipeline the piped Air begin the the construction projects to then the system construction. So from XX We're to take the dairies and and also gas be end for by cleanup our ethanol on this Monday at clean the going digester which that. ready or membrane interconnection of We're PG&E Liquide under the of our underway facility, -- beginning gas Keyes at we'll will on we'll

start that to quarter. early the quarter, the going to and late of on done All week foundation third expect permitting second that, work has we're by done next been pouring be

permits. on California. not all ability think is So getting is terms to that moving having are challenge up the strongly the counties supportive in their up counties of just we any is they're of because the workload. very economy a counties found it's process of are They're everything picking permits. COVID pace. to The of I pushback the back the only -- along in backed lot And project, We're our -- the

requests getting from projects week new around permit various a they're So like county. something the XX

a through of But circle with working relationship we the to is be question, that that. your move -- fact us to them along. of the process back kind underway So The I'd good beginning projects beginning certainly or of helping and have completion next say should end at we those by the to this a have the by will year, answer projects of of pretty be place year where we'll XX QX close end of five the year.

Amit Dayal

And it Is change look is this other because with the in XQ. in respect biodiesel sales of were or it because reasons? to of doesn't India, there in like process bid sales any the

Eric McAfee

to improved process But our protect really in to measures us. some by permanently It’s had be strict COVID. has bid done that India. The vendors to actually and there's driven employees benefit

Amit Dayal

of biodiesel that adjust our sort this year? that Is revenues Understood. biodiesel coming achievable is for And something Eric still you million sales should your think we for India presentation, has from or XX around 'XX? expectations

Eric McAfee

XX on I $XXX million think operation. it's have an that year. operation COVID months, this At will impact full

this So and meet India. tender total it’s could start unknown of how this as less to we only second for out they this in third COVID is et our situation year's all the half what it's I'm The phase recover of be very than them. could second kind of has cetera. a the the easily how COVID tell really process -- distributing, about just really that But operating expense how year, expectations. OMC rolls It's dramatic about vaccine sure you opportunity aware you're truth, the dramatic -- of it is. affects been this as

might it that revisit not a then. But start have And we're to set run quarter, all more external we'll the you day third just up started. the plant at these would certainly lot depending I it capacity change We that. that's and on in currently, XXX% factors. visibility the So

Amit Dayal

business cetera, spread, you're managing right any some of these space is ethanol manage now, just crush commodity we now to sort of of better? anything with dependent or the things the Or right sort to for And respect or are et is there in doing unique that there volatility on opportunities the margins?

Eric McAfee

to Andy, you want take that?

Andy Foster

unfortunately, say I'd there more Yes, wish I could we was do.

a is this corn. in near located right market because hedging the pretty kind think dangerous a I we're of not now strategy

the I their Midwest just the some in think because corn situation do we in Midwest, are that with of we're that to of bases. if local not producers unique were able position. But

we've us would I'd I upside been it when and say, think on say a experience, XXXX through for the I similar was or…?

Eric McAfee

of…. half XXXX,

Andy Foster

our J.D. with company. We grain as some a of that to that work the was Midwest. from a was they there going shortage. Heiskell merchandiser or based on essentially Where event drought ability over great caused have other company, corn all old And draw a XXX-year the Omaha, elevators, out

locally. us Midwest corn from In received than fact, not a something to receive grain elevators. up other trucks like dramatic year, other source gives are any that the grain that advantage XX from I And we think set marketplace. different in plants

can the But Corn from if a do in year very I wish mean, to. they probably think a they to because gets Eastern is that I talked the was in I've weeks, run corn producers of I've the going locally, done. do. have couple -- volatile, can wanted I to guys And bring in the who that. expensive you it six have find be out very time difficult really talked plant to corn the you to when this on advantage when you nothing past said, it, the one very There's they're in different supply -- Midwest, I a ability is side. the we it So Belt what's one destination we

going some destination But this we're volatility end up pain. costing think, can. us think trying to best a could hedge to idea the as of I the I So with do plant we

So of we're unfortunately what sort with at. we're stuck

Eric McAfee

And don't to corn, I’d we like sell sell to have say ethanol. we

shortages now determine in ethanol strong We're that’s actually So very for flow. going cash PADD demand Western the demand area. seeing and the for to right our very, ethanol

Andy Foster

the PADD actually the you shown months X, out. and know, probably to sort the for terms hour Yes storm Part three But is which zero the to perspective. inventory impacts, that Texas, starting couple Western from that went an United attributable past has across the of lows in know as States, gasoline still of months of you Southwest, all giant hit record in itself that economy, from XX California of having work miles as is the to per demand. is last

so all And think, third a market get the through which now. I you're like the to quarter, seeing, this visibility is we're about in right going least at

is see radius think continue serve to to XXX in market, which strong mile we truck in plant. local really our seeing demand of that I California, within going we're our we're what

to continue We ethanol strong see demand.

retreat continue where have situation if a deals it's is, can we pricing those with it an positive corn and see of gets margin. corn, If where little one the in ethanol it's it a challenging. keep So operating ethanol where can to pace contribution we stays

Amit Dayal

Or I we not really was assume grade previously quality industrial discussion allocating maybe high capacity from efforts? still some know contribution that in any to should alcohol. play? Is those about there

Andy Foster

for We business, perspective, have in to a scheduled a area, ongoing sanitizer of relationship discussions ongoing the this potable I'll let but discussions. our later have very from in month. have we fact, alcohol couple large with producers Eric speak

have now to to TTB, So from we’re allowed to permit as see that. DSP continue I think we the do we're going a

a sanitizer think And won't allows I that. nice think it's side those opportunities piece neutral good that some business, of to to I probably We'll of advantage do same business is where I we're business. we true us on the see opportunities. grain to try volumes, potable it's take solid grow diversification. the spirits continue our that's a going huge alcohol, to say but

Eric McAfee

cheap to Right. waiting a now again. And quality the actually low shut products. the of not warned is have the pharmacopoeia standard down specs. over imports meeting by XXX them for of And been the enforce FDA, we're FDA lot FDA That'll of

the to clean for market of waiting we as up, So we're see kind this.

Andy Foster

-- is channel market was year. the jammed last I And significantly pretty the mean,

of and now. and demand non-traditional sources the So sanitizer. of that and bottles hand can USP there's stacks bottles ton from not a goes right you find anybody stacks Because supermarket, to that

And to an settle do out we needs a So for then itself little believe ongoing the that's market opportunity bit. us.


Jordan the to with go we Next line of Truist Levy Securities.

Jordan Levy

Two quick questions.

you extraction First, just of on Energy wanted put weight of the understanding in that relation grant, to into to my wood. touch To haven't from a cellulose orchard mentioned you lot all that Department the the guys economics take of percent thoughts in the to that time? level on sort potential high just five-year this of that sort plan, could look your what your project but wanted in like and and of the what that

Eric McAfee

Thanks, Sure. Jordan.

because can being sugars waste with of diesel to The hydrogen plant. expenditures have XX corn capital gallon first step from the production million that we ethanol jet an those process additional minimal sugars plant existing process and that in our course, extract our wood, very is

XXX% our So off gradually overall being of to wean on corn. is dependent ourselves strategy

decrease increase fuel, at produced and starch the corn for every jet amount as our corn a -- corn, a wood, we lower different saves wood. get So we're the score and increasing we being carbon of of ethanol that that we identification] volumes costs the of [renewable number. a generates ethanol using we're And under intensity sugar plant can of from the XX% generates us purchasing

This using of numbers per probably done of feedstock sugar number we go then exclusively scale is XX% $XX We've additional that cetera. patented, it's We're year a million corn from X.X these the licensed The pilot our a plant, to for each was us in California. technology granted is the forests. XX% $XX million of flow to million about estimate we positive ethanol the in January year So now displaced. needs it's cash But to per XX%. always XX it's they and million. acres million, is extraction is it That technology, If million. times, around X.X out and go which million, doesn't is come year scale. about XX for linear, sometimes our $XX so non-commercial of it of et patent million, orchards, This XX is which decrease. this sometimes tons

upon Department pilot two specifically phase of engineering $XX is construction And size to And Energy its how construction. and facilities, be $XX grant some plant to of a be award a things $X the actual million positive fund the because program and be so size cash it's whether for other small The plant. our of commercial projects. it’s It's a program. flow a then to award it grant for million million grant would actually other of would projected integrated

just then plant, it calling And we're a would we pilot but facility. it on. the point it's So that commercial expand pilot

a technology it's been working gradual four development on probably we've So years. for

corn have we broad on could frankly, and technology business. our this technology. but of the just opportunity from And to a impact every plant a Now ethanol has Department Energy patented recognized have benefit plant, not its the unique

Jordan Levy

Eric. RNG Thanks, back just pivoting follow-up just as the business. a to And

that beyond as the thoughts of noting kind potentially five of updated your and year business scale the trajectory get even to the your continue wanted just you how to increased and in seen to you're general relates can just kind positioning geographically, in to kind that the of in to XX, just you and competition we've unique beyond wanted it business? the long-term plan, the scale think XX of space, thoughts the RNG it get ability on Just

Eric McAfee

the -- few of the that next XX feedstock. any of with dairy interacting pipeline. XX actively all we Putting about occurring over gas within pipeline are makes course, us counties we, for obvious miles in supply miles the obviously our dairies our of ground region, And with of a in We and dairies choice operate, XX the the the dairies that's months.

feed And business. our now, we expand the the other I would the animal relationships. to say regionally our because to to we're X,XXX of California our continue footprint is the approximately in. market year California. that year, through expand our the just we regions market, a connection So over obvious in of region then those job dairies Through in local dairy dominate are that to from next leader

is have If California you which in of there’s of And market of dairies part dairies we the And the And valley. we part up the look Central of valley. sort the we're developers, of being is one relationships the very very, with we're showing couple only customers. can think in and at of those in the the really the area. one of I South in good sort And a our ramp quickly North part valley. into

to of of portion have X,XXX them. our So a the dairies, is goal out substantial

Andy Foster

think into concern the West. would of question is and This do of deep what partners outside you everybody's that familiar brand with. that, conversations all strategy with Really some that conversations. -- all I up think we're becomes just California it's is all name, ask, to the Andy, offtake we're I the saturated? trying you've the address come a But does kind add those will is, Wild got to what kind because are underlying that at coming We're is in, you having which with now I some developers that's point of state --

an advantage. economy, relationship in things to Eric for the last give One dairy XX years. feed is us on been touched think two We've dairies that the right? our selling existing I

think We evidence think and of I us the a continuing in that number signed a up, the of terms that and lot dairies And engage I strong relationship. have then helps -- is are with. to we've

gas, other sad basket and got not to into X are But happen going our that that price happen you one and number to the all or in trying the as we're then undoubtedly changes the the thing disappointed XX putting to things have of next get going to do chips of we're the when this years. one. real market so agreements, into balance progress So we our source offtake is to the in

gas and any electricity think our I've for we're as and remaining I yet all we’re and our discussions let's contemplating keeping the that an renewable open answer whole how California market. think not will to gas, where with not I really got It's we're the that this how getting just had there and this. into on used. And Air without it's for play say question others. the is at exist going is diversifying detail that the to Resources as we're ball obvious send on -- well looking significant is Board then -- just potential it. And eye markets we So into quite natural we progress And

for trying ethanol we're a destination like having So sort have years, options. to been it's XX plant we many -- of to what know not very

model smash business. of across we the risk lots do give we're our so so that And and of ourselves options is trying that to what sort reduce


go we Capital. Next, to line with the Woo Ascendiant Ed of

Ed Woo

just stance out with passed XXX six the that months? next what the do see waivers? in he's that of in the terms the that in proposing, we see has the green as office, playing do you President As well either bill new you days How EPA the in as ethanol

Eric McAfee

$XXX very just ago. an value not potentially the the filed legislation and some of their waivers the just actually couple EPA there's they of XXQ, of the oil on significant biofuels we but could weeks get $XX in of waivers. taken one I their that three filed one grant biofuels of favor significant to revenues read opposition companies, only the industry to promising Supreme per in three sequestration. very a that say opposed in that went would I they credits in of own carbon They action it’s thought they've has carbon also of and from strange, a Supreme increase went provision case another under ton, is This and to, $XX, increasing petition actually from The was very grant to hardship own the industry. but support something Court Court to a

obligations the the has which delayed been ground in getting new EPA running, of volume the published rules, which promised hit So months. without has the next few renewable are had the sort secretary the that actually blending

only about in have but catch quarter of today which RINs, playing up by and of support And been little not $X.XX renewable of generated doing so The a our so cellulosic are third think last saying price is bit, in I DX fuels. DX $X.XX much per but the far that was year, things things it’s they're they RINs biogas very RIN.

is so The last the a encourage quadrupling corn obligated This was working. have now again, buy offtakers, RINs, almost to to price parties to expect $X.XX Fuel RIN, who Renewable ethanol, blend you other to revenue ethanol if The to to RIN which to about blend Because DX you every that of get molecule. who Standard the some somebody blends that very actual And of a this of blending DX the you don't of blending RINs. was buy supporting the physically million morning buys and buy that is significant the what it. didn't molecule RINs, ethanol. any anybody blend is give the for the that's XX to reflecting year from to or RIN, away free. $X.XX. ethanol the actually physical the have them able was We RIN or the RIN is Federal do, and be So blend year a ones value for designed is mechanism want

enforce the the not rules, But So we're EPA any market there's very the frankly, well meet equipped demand. to doesn't market demand.

set market are in seen that that companies that's stock the that are providing positive haven’t renewable number under the is think has thing a the operating now had years. fuels I market balance enforced, rules of a being of we a and for


Capital. with And question the our comments from line Stonegate Marco or of last Rodriguez we take

Marco Rodriguez

on spend wondering for of I capital here if structure was bit you the could Aemetis. maybe a time little

you market is guess comments maturity of the You the stock are some of the to date April another your here extended, helpful. earlier prepared and made very of remarks But just how about at you I some it were expensive kind the like the price, more thinking in you're it given looks year -- said kind in debt, volatility offering 'XX.

how Just update about us you're your thoughts that? on thinking on

Eric McAfee

long to that early about have. necessary. And the we don't players really long, recognize the in with response Street think Wall debt. we we XXXX bridge concern In took replace completely various high interest I steps Sure. not it's that, rate to discussions that

of cost have million assets. $XXX about our We

meaningful to reduced we down lower debt a that interest So rates. it opportunity to refinance at

but interest we year, first frankly, of are in with that a the can this think due, other So above not threshold. that's money substantial now remaining the amount higher be refinanced bridge having tools. interest refinance saving And by now financing were quarter we that I

threshold. within clearly we're Now that refinance

nicely interest would to So rate couple we low debt executing interest I with are, very moderate next rate see we call think, months, something XX% over would I a you'll debt low to debt. think of high of plan be that reduction consider debt, on in interest this X% the matures range what we rate

our I financing. think, most debt clear parent company though, do require that not people that are projects not a

when could funding on no with Aemetis free at that for program, project nothing have funding all. biogas, invested. debt. a are debt literally Energy with subsidiary to subsidiary equity we no would company have because USDA impact projects level, debt, project our Biogas debt, is parent Our at put debt allows of The equity We company all $XX debt the million company example, $XX to and billion company our of do parent the entity, million for do has the at example, $X standalone us Renewable the of into America for has

out so DoE and same that up well it's muni set the equity diesel to jet plant, do functionally, subsidiary million in our $XX goes or have we a of most And financing. So think balance they the consolidated very spend figure the if USDA investors layer sheet, that looking down one want has time India all our at a with grants to debt quickly tax either. just free in plant they’d at or from no I extra about

set revenue. Biogas, to million free have debt upside, long-term We debt a free. year completely is no million mentioned no to It XX gallon downside. of biodiesel up of over I debt at XXX is be plant course, able all. All do

structured we no with So debt. company the deliberately convertible

$XX and a we're in worried very our ones lender. shareholders with conversions the They're equity of senior So relationship subsidiary. put that the our not that cooperative, in supportive very, dilute million the about

publicly an of of traded So company. in equity stock the they're the owner also

fourth well senior this them their have we're of significantly, well. quarter in a grow the we them. They've been came concerned investors, of relationship, able be comfort down might provided probably year. those little of paying the I out and company debt by as a we've to it to the the solid So year, And But some part load it about hearing first more very relationship because debt. that done with very think last we


this to no for further are the over questions to closing I'd at floor management like time. turn back remarks. There

Eric McAfee

Aemetis Thank as to as you corporate the posted very Aemetis well us homepage the opportunities on forward review the participating that’s Aemetis the joined at shareholders who’ve Please you We website. much and others. of analysts the to today talking with Aemetis. growth presentation look about

Todd Waltz

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


teleconference. today's concludes This

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