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Aemetis (AMTX)

Participants
Todd Waltz Executive Vice President and Chief Financial Officer
Eric McAfee Founder, Chairman and Chief Executive Officer
Andy Foster President, Advanced Fuels
Manav Gupta Credit Suisse
Derrick Whitfield Stifel
Amit Dayal H.C. Wainwright
Jordan Levy Truist Securities
Todd Firestone Evercore
Ed Woo Ascendiant Capital
Dillon Wagner Stonegate Capital
Call transcript
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Operator

Welcome to the Aemetis Second 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, this conference is being recorded. It is now my pleasure to introduce your host, Mr. President Financial Vice Inc. of Executive Waltz, and Officer Chief Aemetis, Todd Mr. you begin. Waltz, may

Todd Waltz

Terrene. Aemetis Thank earnings to Welcome you, the call. review second conference XXXX quarter

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

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

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

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

to Now, of second review were to Revenues million XXXX. of the I’d financial quarter quarter compared $XX.X second $XX.X during second million the for for XXXX results the XXXX. like quarter the

second compared second North XXXX with corn XXXX an American and per quarter gallon per XXXX Gross Increased steady XXXX. to an in of sales from of price the average gallon in the the growth infection to impacted per an from bushel. costs during quarter the experienced rates of as per $X.XX in operation increase negatively of the $X.XX in $X.XX selling price to Our increase profit ethanol India. $XX.X volume, million of bushel the COVID-XX for second quarter high steering $X.XX second compared and quarter to million $X.X was delivered

to industrial loss expense of resulting for million Interest of combination a income second ultra-low consolidated million rising periods. $X.X incurred the our all second of North reported development result from the for during segment second of as Operating Selling, Our $X.X of compared $X.X demand was accounted was XXXX the million. substantially operating and profit quarter higher $X the of of XXXX, America products prices. initiatives. the of to both administrative of XXXX during as a carbon for quarter of general for the lower quarter $XX XXXX corn the during expenses quarter XXXX million compared second the and profitability, were an period part in quarter of expenses alcohol gross million second

XXXX. the second with quarter expenses preferred other and million accretion Aemetis our in in Series compared units to $X.X Excluding A Biogas subsidiary of connection LLC during

during income of million second to XXXX $X.X quarter December the the quarter other XXXX. stock during quarter $X.X Net of Capital net compared investments driven initiatives. payments the XXXX to $XX.X its to in loss million on review $X.X million XXXX in at of the XXXX. LLC with Aemetis of for million compared financial That expense Biogas increased of the property million the of preference Cash decreased $XXX,XXX compared for of subsidiary XXXX. of equipment our million was of second $XX.X quarter completes accretion second and during at Additionally, quarter second second million end $X.X compared XXXX. our debt by our second ultra-low expenditures XXXX. the preferred connection plant $XX.X to recognized of end increased by Company quarter by carbon to XX, the

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

Eric McAfee

you, Todd. Thank

renewable we results Aemetis focused you including fuels. corporate the found presentation, aemetis.com the viewing to on QX below website. discussed is the I the homepage production be can encourage of consider gas from zero Aemetis natural which and the As carbon intensity negative on products, renewable XXXX, carbon intensity producing of

California a since plant operations Modesto retrofitted Our facilities in materials into credits plant XX% ethanol for about owned XXXX Carbon Fuel We Aemetis. gallons California million we million the production shareholders per XXX plant U.S. Renewable own in our the have credits, per common than production months, ethanol converted Fuel mid-XXXX is that XXXX XXQ fuel with ethanol of in near feedstock. stock XX in and their costs when gallon operating more leased the as ownership operate portfolio carbon original and Keyes, located of in the XX in largest Federal year using the California, of started India. Low projects by the value and waste the under reducing and Standard year tax maximized Included IRS of capacity Standard, while production

for plants. This work refined use tallow million California unique improve per glycerin to distilled low has to domestically climate India, India feedstocks We in year gallon waste operated owned Kakinada. communities biorefinery operate was global also City air of pollution carbon our the plant or and capacity reducing designed the carbon built, feedstock and by oils of to and in contribute biodiesel and emissions for which the offsetting to in future on use change. vegetable Coast that oil East to animal Port use intensity, XX We access low Aemetis production we and export cost our renewable near

Our And maintained expand facilities. sustainable, our supporting extraordinary and thousands of biofuels depend that have who together XX seek and build our projects. our valuable at us of work business. circumstances past we to of of become Aemetis Board heavily strong, diluting hard and and production plants of Despite by that It growth sacrifice path supportive was not capital and placed without management work indirect employment Financing our operations billion team families past all operate the hundreds a easy. at extreme Directors. of the investments commitment direct us a build and digester corporate sustain feeding to the teams and create our took to housing by a revenues on business We the and culture shareholders of our to ongoing jobs, among company and year, on X resilient, to years our shareholders. a has XXX% our

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

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

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

for years We have build long-term and committed that vision to shareholders. value many has execute for a working deeply a experienced and been to team

biofuels emissions private of the Tax government of tools instead and policy Long-term, Fortunately, have being project opportunities Department for low support Energy, the now financing financing. positive are fuels municipal guaranteed rate, from Department pursued and in carbon decreasing equity for Agriculture, as renewable Aemetis Aemetis’ provided activity regulatory leading interest financing of role U.S. XX-year trends loans the highly of businesses. by California dilutive the Free

high have which strategy low utilizing interest on debt. then using a refinanced financing rate rapid of interest funding We borrowings, are short-term executed growth, rate long-term

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

President Foster, of North Andy? our Aemetis natural business businesses. America review and the highlights gas will Andy ethanol renewable of Now,

Andy Foster

Thank you, Eric.

wet high covered carbon many As business, more large anniversary renewable ethanol pounds absorbs Aemetis digesters. produced is Aemetis that – methane. example which day Eric mentioned, is Aemetis gas sustainable about captures Those which products, value cows transportation then animal plant, synergies exemplifies anaerobic X including facility a focused gas production transportation. gas source zero create biogas carbon for the an on commercial by from but RNG below renewable mark local our it distillers’ of where is when perfectly dairies, intensity transport dairy which and circular X negative waste as fuel cows. upgraded bioeconomy feed. describing plant our prime is uses fuels. year COX methane gas carbon XXX,XXX million renewable approach or ethanol at RNG initiative about per via which We our from year The gallons feedstock and million during pipeline produces that produces intensity, has while the renewable about natural refers ethanol to Aemetis, renewable an the of energy Aemetis that in eat Aemetis ethanol below producing XX for use natural we often by building feeds ethanol to natural in emissions, ethanol, that production growth produce which will Keyes A of ethanol plant The in negative the produces to emissions are to fuels. the owned carbon atmosphere turn agricultural our zero per September. produces producing the renewable plant, also Eric dairy-based dairy XX than with grains supply renewable used production reducing greenhouse feedstock and the

will fueling XXXX. to RNG to the RNG gas can others. natural biofuels be of a either by pollutants state-wide. to the fuel end throughout compressed to RNG California, pipeline interconnection by plant our natural at in be waste and negative PG&E gas carbon RNG station or to carbon end-to-end California grains XX other air sustainable, and dairies addition to at well Aemetis stations distillers’ fuel RNG transport to the our emissions RNG reduces is carry as from throughout uses can In bioeconomy This our as dairy – as a system operating supplying customers to utility send significantly stations by as owned wet own This connected pipeline to trucks build our Keyes process or California. compressed our us circular at Trucks Northern are enable that any fueled we is that scheduled productively intensity

of commenced boiler a covered me operation supporting Biogas Aemetis digesters in on update the digester a Biogas the that we as build digester project market. and two onsite cleanup take of September our a the central the to achieved and process as In Keyes X energy Aemetis X-mile Phase California and project a pipeline RNG utilize to completed dairy milestones infrastructure just will XXXX, plant. the including the owned at deliver Let moment and pressurization, first digesters you some unit dairy we central dairy to biogas biogas lagoon of the Aemetis key network by

X are building project. We the of now Phase

the the we for plant updated quarter, dairy co-located the our year for at natural continuous carbon the to positive RNG pressurization, use facility. XXX the Resources and issued boiler of a began biogas allowing an and at Keyes digesters, In reduce plant. a QX Keyes ethanol sulfide CI compared hydrogen removal us the of in this last since Both plant petroleum ethanol score of petroleum gas. XXX During the pathway have for California XXXX, intensity utilizing the natural approximately facility construction onsite pipeline operation intensity to fuel Keyes Air negative biogas carbon upgrading biogas been September, is the unit Board that gas second

thereafter. and completed expected with of weeks, of we processing in approximately As of shortly begin X at the follow fueling to of fully and second also the year. equipment station been Keyes engineered mechanical with year, of installation equipment QX this in production quarter Tuesday, has biogas plant co-located major began pipeline upgrading will was PG&E the the RNG in and foundation the gas to this commissioning Aemetis The facility of the the completion interconnection

partners completed of equipment of RNG this fourth complete year, upgraded engaged to contracts California. PG&E expect approximately upgrading expect fabrication is of to We a biogas station at as gas fueling offtake After Aemetis us the quarter. in quarter in the throughout of the same we flow permitting a customers to and installation the and the allowing potential the pipeline engineering, number centralized time during place we with X-year commissioning process currently facility. biogas have third interconnection have to RNG to and expect

last Another permit encroachment of significant was project the milestone for construction week county biogas construction of third use upgrading to right-of-way pressurized us County’s to the for the when the series connect segment quarter, Phase Aemetis dairy begin achieved pipeline granted allow the an RNG Stanislaus This was with which XX-mile of will of next pipeline. will RNG digesters X the facility. in our

County and begin Merced extremely the for construction the X to in network. permitted, XXXX, that to our digester we County of miles operational XXXX. half early Engineering dairies in digesters the We in the has half segment to this remaining productive natural digester and are review. dairy renewable digesters project have planning for be of expected advancing digester next continue will digesters scheduled to first end the been for projects in sign have completed expand of digester additional and additional begin completion XXXX. is with submitted pipeline XX Aemetis Overall, been by further of of an and dairy up of XX construction additional expected X Construction to with in to segment has for four build XXXX. the pipeline quarters month. X project the gas the of been Merced the of be and fully the the been first the permitted XXXX projects permits for

additional production been gas. Commission, of from government $XX Energy additional team grants other We of and agencies in to hires dairy an the biogas have California made the about – our on has renewable some awarded key team Aemetis natural expect new and members coming add months. biogas the and for the million PG&E To-date, project

Let me discuss our take at progress a plant. ethanol moment California to

well. in earlier, As Since the mentioned demand with in to the in second year Todd and ethanol revenues Corn a of remains we smaller has has the profitability, through a increase higher railroads. of half and first normal this sales for robust ethanol first been the year half ongoing with as pricing logistical supply year-over-year XXXX, XX% ethanol however, saw quarter. economy began from drag pricing a been favorable issues reopen the the than on corn

strong the past we to gasoline demand demonstrate challenges Ethanol overall distillers at and domestic distillers demand spots it’s Keyes to of of has and XXXX. especially favorable Strong pricing has U.S. and continued and the year-over-year exports remain grains for corn were the Brazil, trend in wet oil persistent Despite down plant over been bright product California mix the the are about consistent to from ongoing COVID, continue. a XX% expect second by half, year While levels. about both XXXX. this favorable, operations. imports, and of related to half XXXX for have in lagged quarter from especially – and first X%

excited about transform projects Keyes have products. intensity are on and made We multiple we use dramatically reduce the underway us of petroleum-based gas allow the plant progress our that natural significantly and to the of carbon the will

by flow to year increase Let updates are me that completed. a just a few once give approximately on cash projects the expected per million moment to you take $XX

separation the significant with This funded water Chemical. powered we ethanol which membrane use expect unit equipment. of by replacing and grant with upgrade amount Mitsubishi complete million our – use ethanol from to using fuel ethanol unit to the to our operates million gas that efficiency a generate Mitsubishi commissioning dehydration molecular system First, that $X reduce in to gas sieves, natural $X.X the is for electrically $X and are a petroleum partially expected electric of next funding steam, month, of will intensity electrically plant and reduce an carbon ZEBREX an by energy million installation dehydration the of zeolite at debt was about the

solar array million battery used This solar steel ethanol and X natural plant. flexibility gas we we Energy grant. new optimizing throughout micro-grid intensity applications. increasing operation us Commission capacity system a installed the carbon-based funded project panel tanks natural tanks million electricity, June, by steel we the provide zero are replacing other is gallons, backup California in and our which for stainless additional while load-out Second, dehydration XXX,XXX with stainless $XX about further to energy – the plant reduce by consumption Three, the an in $X gas will storage new installed by for – storage of installing with carbon solar

in in grid engineering stages regarding are make system and construction shortly final partner will solar micro quarter and the year. an launch PV of of third construction to the this announcement We the our expect

saving utility per eliminate ethanol natural steam-driven costs. Keyes petroleum or designed and completed, these are partners for launch to the system is We in the XX% at the is and gas are project, steam expected at our – cogen of are reduce MVR utilized by a steam announce build we designing designing – the project even potentially and and MVR to well. an the electrically use, quarter in known of has which $X gas been This eliminate designed significantly natural the Commission process our petroleum Initial system, as transmission upgrades funded as million we and to approximately last engineering system plant. or grant. plant reduce recompression partially the pipeline vapor Keyes building significantly building reduce more year and of also mechanical fourth than completed natural California third million the driven gas to reduce design use Energy are and last $X upgrade When

as at these primarily a membrane reduction being electric California to our using biorefinery for electric use Keyes well expected solar significant the system and intensity ethanol the zero system micro high-efficiency making CI RNG solar in The operate result as system. profitable pumps California of market. carbon upgraded Eric? biofuels to powered dehydration the to including a by renewable produced motors of MVR grid power in sustainable, supplier the fuel sources, is Our combination our plant plant, the is and Keyes new

Eric McAfee

Andy. you, Thank

study Capture was Let’s review ethanol Capture. XXXX, the our University the in carbon have sources X new one of as a Center plants return California plant that on the Carbon Stanford largest plant a cement facility subsidiary, COX California. California from COX for highest compared Carbon October Aemetis by In in to building the refineries, identified potential Aemetis issued and that XX comprise investment and capture natural gas oil in sequestration emission sources the plants power in

already dioxide ethanol tons COX for credits already of plant we COX compresses liquification about plant per Messer XXX,XXX carbon Our from transportable captures metric tax in reuse. COX generate XXQ IRS already into year liquid which the and the

confirmation were study. We in underground now of cited formations review are Stanford completing COX the that a X-month the sequestration

as We deep about as sequestration. foot basement a above is that have ideal period with Riverbank known jet related Stanford by strata two that salient our process cited as COX the well managing the expanded underground Class plant permanently Riverbank known Compliance carbon form Hopkins of and opportunities rock. other a team an are sequestered the and subsidiary formation process. COX and a reacts X,XXX time, X,XXX salient dioxide layers and Carbon not by the atmosphere. the a EPA was Manager and development well mineral the diesel regulatory sites Between a Aemetis to Capture long Regulatory is X Over a to permitting cap adding Keyes manage located foot the to to lead plant deep determined strata the and as plant as permitting Mehagan injection We rock does as a for of that return site

from the In XX for global projects, plan two plan emissions to worked XXX,XXX waste to years inject for recently sequestration year project, ethanol wells of Chevron’s and and and industrial two Capture up diesel Aemetis managed addition at we experience we in sites to biogas, Phase biofuels California. California Mehagan COX commercial permitting jet remediation. our tons X Carbon per which drill plants into of In our plant to metric near Chevron

the injection X year per We After per expecting for build wells million X.X of an a XXX,XXX have ground per initial gas year that compression operational. capacity of tons million then construct additional are metric to year tons above metric is capacity. facility minimum the per of compression point initial COX injection COX tons well the

sources We in California, credits, including discussions are credits would LCFS and XXQ air companies. active emission IRS capture with major generate COX in that and oil multiple refineries direct

million initial for Carbon to a construction of two Regarding will project. phase EPA metric data wells of year other COX empirical up afterwards the of the The to the wells Aemetis tons X EPA X provide Class supply per permits. characterization Aemetis of injection for drilled includes X and to drilling receiving The Phase permit. Capture be then

we in with QX the next the process expectation are in the first drill can characterisations and We two year. that of well currently engineering characterization permitting with the wells

Let’s our renewable zero jet using in negative fuel diesel intensity Riverbank, carbon California. project discuss carbon hydrogen

separate air Further this construct under of to milestones amendments authority of a ATC known year, issuance pleased the are otherwise permits We Earlier refinery final years the to related bio we as continues work. carbon achieve are near the Riverbank after major XX planned announced the or in to Riverbank, to California several permits of development Modesto, Aemetis zero part the as engineering. permits. refinery,

are the diesel engineering XX jet USDA the financing. of closing year phase currently support We in the to of debt plant

signed XXXX of with technology a for Axens process technology QX, France catalyst diesel the plant. agreement the we and for jet During

moving the EPC as Project construction. Koch of scope expected work with the the managed agreements and for was contractor. the which a manager We engineering are the engineering Solutions Koch of contracting recently project phase the We development accelerated that project, to completed also with by diesel signed jet toward EPC now of engineering project an and agreement phase

onerous on with diesel than more for projects We work based on the have engineer the of X engaged Aemetis. years plant, as jet ATSI

gallons to the We Worley the agreement. engineering scope completed identified also goal Bay already a about permitting plant of billion of the that Project site Axens year is per its the Worley Area. year announced is engineering renewable more debt and that agreement more renewable the project. a doing Riverbank financial plant engineering produce work flow. $X million XX of in and has the year Solutions had with year diesel firm engineering Koch large We the jet gallons signed $XX primary Francisco than design San The Phillips XX revenue, global for now Aemetis plan design technology. XX the since of the million Recently, a year EPC XXXX. XX engineering a equity oil designed grants per of completion $XXX the million Aemetis and the $XX a for and and process of Riverbank year a closing The of diesel, we global year that by work per invested support and is last jet into working expand positive facility is using million cash at a EPC diesel converting refinery dollars is renewable plant production per completed diesel initial to than with funding generating California to to and has into million

will The as produce vegetable plant Riverbank approximately which renewable generate designed wood fuel, XXX waste $XXX our oils is of cash forest hydrogen, and wood hydrotreated X-year cellulosic to flow. fuel. million plan diesel waste diesel aviation and of biomass revenues dead and through to annual of As million positive produce and use orchard to to other and other jet such renewable part

in review Let’s India. business our biodiesel

prices $XXX on purchase OMC subsidiary of process by the The three prices with fully increasing that bid biofuels in subsidiary a Indian the million been gallons XXXX offer a offered prices by Due biodiesel government by resulting and the and in issued India, in to is companies. oil constructed accepted crude OMCs has tender not process feedstock for have biodiesel India oil for months and for our about prices $XXX India for continues bidding bidding biodiesel. fully of resulted have universal higher marketing price portion in debt no bid Our diesel commissioned. million producers. Since increased the higher

well and purchases crisis for meet begin are the increase activities for subside, a climate biodiesel Once India to government are the facing and government renewable occur positioned biodiesel to quality goals. of India procurement revenue air expanded. We begins COVID as large the rapid change to current

corn Let’s an waste finish important We The Aemetis of innovation, in acres Aemetis, from cellulosic technology generate non-commercial that we of for By the sugars waste create in BioEnergy starch diesel waste, climate year are use the extraction hydro for to President cost to wildfires commercialization review gasifier of Millions wood hydrogen sustainable starch other the treatment orchard patents intensity year the California plant. and process brief feedstock is with using is diesel with extract vegetable million carbon impacts change to development with in feedstock the issued ethanol produce negative group. ethanol. awarded unit which EBITDA in U.S. waste Riverbank $X in awarded other XX% grant technology our the hybrid Technology of of for two A of years than the the more federally reduce worked alternative our ethanol partially funded and and low plan to from carbon of the of The production a funded a sugars Every to and ethanol uses increased the Recently, designed each and instead about granted Vemuri testing technology $XXX,XXX development from Keyes of Joint of Energy become work Gautam Commission significant property Dr. production non-converted that wood, be to corn amount to from biomass, of development funding, the continue a jet process plant adverse team lignin Aemetis losses of and intensity Institute the wood California. and forests. at of and carbon fuels. life, staff years CX used cellulosic and per JB was CXand led produce collaborative laboratory to process To wood oils native sugars causing our of Berkeley, by wood with by Minnesota, sugars ethanol from Keyes negative exclusive from was Development, for to feedstock. as sugars Aemetis, Vice in now wood waste expected headed policy $XX our plant. to that and licenses a waste million protect California for sugar at forest and lab focus with government obtained remaining the to extracting hold is which from working our produce of of X patents.

Service sugars $X production orchard sugar Grant to After event unique. of The of fund $X used the and and permitting the from further Energy the of have U.S. our now by In extraction application is to This successful wood waste million notified extraction Department we Energy will for $XX plant set technology. Forest being of grant a DOE has develop DOE which for grant waste additional aside completed the proposal sugar grant. facility. to grant sourced funding forced million be awarded would. the engineering plant the that to extract million from for locally Aemetis production production up Department

expanding Riverbank carbon and negative jet from summary, and operational. becomes gas, natural extract and a renewable ethanol expect renewable dairy, operations We portfolio is plant would cellulosic sugars Aemetis low to pre diversified jet when projects renewable carbon diesel fuel. diesel waste from commercial intensity In to the of

business for Our building for and we and company’s respect are significant value long-term to empowerment serve. communities contributions to our and shareholders, making the positive values commitment partners, employees and

a take let’s call few from Now Terrene? participants. questions our

Operator

McAfee. Suisse. Please our question Manav from Gupta Thank Instructions] ahead. first Credit you, [Operator We’ll with Mr. take go

Manav Gupta

Hey, Andy, the thank on developments. little us update you for It help this RNG better. the understand a

You expect of ‘XX. end XQ, to online XX by have dairies the

instead ramp of these Your here? are the like ‘XX? And year, we the expect end there your XX these the the will of dairies by if up XQ and through us by of to pipe of could in a you end by of coming some XQ, walk in from is in of similarly RNG dairies Or can coming should be trucks online ramp year all the turn end XQ come few

Andy Foster

next in XX. they QX would thought that next not said be by my Manav, year, getting of dairies on by entire the end the Yes, we remarks five of I the

sequentially So next we’ll from to of the begin within days XX then the end of we’ll status, five we five beginning going we’ll there. our subsequent this on can And within get or on the next the guess at permitting I’m year – construction the that begin if them go done, year. after to next XX depending

I not XXXX. to So completed XXXX is by end the think everything the by the have goal of middle of

Manav Gupta

Okay, so of end XXXX.

see X Okay the we dairies. two hit fine. way Because understand Phase it, many us How your up? have to And the with also XX overall already help aim have you you signed advantages.

You then have and relationships on but bigger some sheets. farmers, players bigger – existing pipe you the a are there have balance with the with

XX it that to be is players? sign to do the more you’ll So to you there get dairies up how do competition you bigger and from think do when to able many need

Andy Foster

process dairies next all contract in with either days. about XX under that are under will signed contract or contract So be we are being leases of currently by the under or have XX with

forward. discussions of in some that dairies some with, to near were that say located at and I pipeline, further not, the would be in to various going that We’re are in least XX are we able more service different want that away discussion are with that stages ways some

finding of the still dairies. we’re interest from lot So a

I week ago overall the dairy terms was of think it believe not XXXX Bill two that a or indicated I a the goals reduction. was Senate report. meeting in its that industry California, as per carb put out essentially was

dairy lot think attention. of that I hearing got been from We’ve that people’s So concerned about owners a they’re this.

So meeting – for continues the be I lot think we’re strong market dairies. for new meeting a of us. to And

lot not stay stated I’m out Eric announced but next X-year we to of hitting able be finding to with meet see year, overall we build getting expect in out a challenge us certainly on that. And I part as to of within the time track But goal terms the honest be getting had these So, plan, folks. don’t the that the with any the hardest is interest. in are to you, in still all

Manav Gupta

which they stick is, you capture Eric there, from of to think there Okay, which you sequestration? last because no and achievable, be and that in out and anything opinion, Eric, EBITDA, contribution even your sequestration. changed, have follow-up guidance $XXX carbon has million, is carbon that not quick the million will $XXX excluding has the capture $XXX for million if a But of

Eric McAfee

in the had the is the law, Senator by impact is Fuel the months the conditioned over Biden this and been with would that that federal say thing the fully him the favour Biden bit EPA And he lack by Street to and that of is No, idea last a question Wall comply there’s RFS. as including was company saying Grassley. X the Renewable any that material administration generally specifically that making a the administration. law appointments I vote they Standard upon has Renewable investors of was the of only would of of that he enforcement enforce would a enforcing that at voting federal Congress Standard, Michael they’ve fully been asked Reagan’s Fuel that

and now XXXX. would volume requires of the are announced. last year, now the obligation of is is renewable test. a been November bit And in a And not August announced, standard in have August fuel this is been renewable We of

that they of court now Street two violation with administration the federal Wall used RFS. been closely orders stated it comply in how to is EPA Biden on RFS the has supports think I the the watching and have the

And as closely are as so an well. that industry watching we

this and enforcing be do But profitable strongly minute by as not fine an medicine. law, yet. as this seen industry, industry federal a we’ll sustainable a have we that should I today, think very

that So enforce that president I $XXX would opportunity follow-up just within $XXX But what campaign the forward commitments that we his seeing last the of comfortable range I’m an enforcement, million enforcement, should and RFS. the achieving million. happen. very that’s upon here. the we’re the looking to upside it’s Without very, hit on becomes say that that should and the recognize

Manav Gupta

much so taking Thank my you Eric. questions, for

Eric McAfee

Sure, thank Manav. you,

Operator

We ahead. Whitfield take next with from go question our Please Stifel. Derrick will

Derrick Whitfield

all. afternoon good and Thanks,

Eric McAfee

Derrick. Hello,

Derrick Whitfield

your focus of prepared your I remarks. feedstock from comments business, on with couple to wanted carbon Beginning zero a

you year-to-date I U.S. those across the global feedstock increase on the some we’ve to to the markets speak feedstock plant? With mitigate in your could opportunities of pressures Riverbank share costs and to observed if the ask at you your feedstock views want can pursue

Eric McAfee

know, The is from competitive to that. the derived ethanol our going expected in businesses, In animal sugar jet our be the currently current and starch. waste you you marketplace. future But feedstock use sustainable feedstock feedstock vegetable also used is as corn wood oils know for business renewable and different fuel, than as and ethanol a highly which our diesel uses are diesel aviation

We the exporter a are the product tallow. second the in and world essentially amount it difficult of tallow But significant India, at transport very because is room a produces positioned meat India uniquely animal largest to is of in is that temperature. solid

diesel And a its the transporting X,XXX less renewable then barrier to much in it renewable has products. to so the of across And upgrading very meet converting specifications Pacific transporting been it production. significant and use miles Ocean technical

and of XX% a market, we’ve animal be in have with plant controlled to However, a use the special a about player is approvals has relationship we’re on relationship our to operated infrastructure able biodiesel has India, that tallow company over the that the tallow. seeking market with producer the and largest and

plant, for export also we tallow can California frankly, in use use our California. our only the not product quite So in India plant but in to

a plan discount continue I to we renewable of and billion to this a to expect California the plant diesel with waste people’s over use X.X product to access current able our unique price what for supply to from and, production. today. is use tallow significant be to use So cooking feedstock that oil do And very

Derrick Whitfield

it shifting and interest late at and like over purpose you for to your great of general positive these speak a to in the equity sounds comment in Perhaps of you could followed the shelf financial raising Terrific, certainly levels? the side equation, the business. July your on mix

Eric McAfee

about Todd, talk you will that?

Todd Waltz

I’d happy be to. Yes,

it a as variety. I we see our lot size, So have you’d the a up a up a is covering shelf think are – a shelf companies tool general is put that is and set we race of purpose

takes We instrument have it. It have see that and a to can we place we to while of the a are it an up. it, put file that and in take available when advantage shelf that us mostly get markets sort and favourable so we of together

hygiene. we sort part just it up corporate recently just we put overall so as And of of

Derrick Whitfield

your very time, for helpful. Sure, Thanks it’s guys.

Eric McAfee

Thank you.

Andy Foster

Derrick. you, Thank

Operator

Please We Dayal next Wainwright. take go will question from with our H.C. ahead. Amit

Amit Dayal

timeline Eric, for the Good the afternoon you. dairy XX, of everyone. digesters. setup your Thank to regards initial with XX

this the of the year, these will of you part by in think XXXX. I be online earlier coming second quarter said

of Now aware permitting XXXX. you the timeline to any seems should the of this help understand be we issues? it us push have of? towards else moved there that Is anything just end what’s out? some Could driving Is

Eric McAfee

even think wouldn’t in accurate being just is Actually, issues. Andy it’s permitting that. say I I

PG&E unit And digesters fueling XX challenge. biogas for Our take us. are thing execution in in to current our XXXX our ground. is put upgrading on time unit, not station. a is not themselves will in injection all and our digesters other it particularly visibility is with or our difficult There RNG a of is the reality The technology of

year up largely into how contractors fast I timing it’s see forecasts, could to And visibility our execute. that think So have an is. today but XX end what to we don’t upside we

expected. little our than accurately if year that is to of complete Andy it think see current an could we third otherwise quicker the I So, is us take move XX fourth there view, upside all is quarter to easily But certainly into contractors which or assessing a them. next

but I are think we operations to are in We restrictions have up labor in California. probably projects. seem process, surprising trying and for And to show been operating new unexpectedly, are unfortunately our there access on if hampering Those ways still COVID. not these currently in

would it’s then commodity year. the fueling which building. the And In accurately and again for which remaining just matter of to think unit, third though, on of the schedule next quarter part Andy the year do XX upgrading is digesters. assessed this the stations wrap I up those pipeline, of digesters the a also interconnection and that be fourth completion a of most installing to general we process the interconnecting and difficult at continue the are unit, dairy we this So, process, our RNG

the done, digester part phase simply and labor a So is the most difficult is construction. execution of part getting easiest

Amit Dayal

understandable. That’s

start start So those at better in in will a XXXX terms can just handle these they recognizing you revenues to slowly sort be potentially on looking be of common digesters, when from when we XXXX online. of in these all itself? or getting Should revenues ramping recognized

Andy Foster

is it’s And gives clarify way further me to good about This a opportunity. question. it the I I was earlier. what talking so by guess No, Andy, the Yes.

permit the gotten have pipeline. to we the build So,

Most the in constructions have schedule XX months. for do have it We month XX a XX miles of of can pipeline. us contractors they told

construction is to We The dry. had are – to we pretty days you actually especially on pretty building XX the next ground. happen But the a don’t little quickly. It because along next within go don’t digesters there with start said, flip California, in to in what’s I the take the days. know when weather digesters, as you which, long time build start in the of very doesn’t we going XX will digging five bit just dairies you everything

digester So, it’s easy build. to fairly – the is

So, we build segments, are to in the dairies. going as the pipeline add we

is miles. County XX Stanislaus And so

We to out. the that dairies the the obviously of And the first five going that priority, are are that next pipeline built. are to be to going that the will be dairies building part connected that’s be

February, the in we digesters five saying it pipeline. am another it are let’s But we the they La on Niña that, digging of correctly, be going bringing have, the dry those a means get as to these California. to reading the have bit year, depending the next that of if into I are kind be dairies you that’s winter little weather which next assume as impact will on start So, year, and be online of could spring does and first in

have We season. a favorable construction

We will revenue brought up. from those as they recognizing are start digesters

through able start We pipeline. to to the be are transmitting gas going

We will we start. And have connection that our can point. by PG&E

that the on then five revenue. that And we recognizing as we will in. start we the five on after As start bring next bringing will bring dairies, we

It end new wait start online. doing we the as a sequentially And till we that. will digesters these bring so happen it’s not until

Amit Dayal

you that. Understood. Thank for

Andy Foster

answer I your question? Did

Amit Dayal

Yes, yes.

Andy Foster

okay… It’s

Amit Dayal

Just last guys. one for me,

ready. making On with are and permitting progress with you everything CapEx the getting the side,

On lot the side, be itself? engineering in start felt XXXX of ‘XX or that is to in going will that already a CapEx up showing

Todd Waltz

$XX it. of haven’t about other But the of done two - gas and quarters million stuff. would We CapEx on first going we in cleanup pipeline announced the will XXXX. were math to we I see assume unit we another

another two million another of will gas, million quarters the $XX in $XX then upgrading digester. million. think We And And that I about will pipeline. other And half plus, will add probably see some $XX the in second things. maybe of plus be of XXXX, first XXXX, completion the

of quarterly seeing of a are $XX million happening. we CapEx So, quarter roughly

Amit Dayal

have. Thank all so Very I Thank That’s good. you much. you.

Todd Waltz

Sure, thanks. remark I costs. one-time should are these again,

upgrading, even digester. of sort pipeline over We interconnect get gas a spread RNG are stations, that the one-time the fueling then in have

that the this after dairy the hydrogen construction have of cleanup So, to was digester onsite we interconnects talking then sulfide Andy cycle about, pipeline. that just and

is bringing expected digester a construction our phase generate to accelerate, no as all, without pace XX into days would at the next interconnection. the move now, in So, of we revenue right with that and the out digester dairy pipeline

a started our process have in you mentioned, to is didn’t here as rollout to favorable immediately as digesters. he weather. a but then and first our interconnection put And is building with long on So, get up reasonably timing additional XXX-day it, and as dairies Andy scale a pipeline XX-day digester three

process long So, doing. X are it’s a we not year

Operator

from Please ahead. We question move Levy Truist next our go to Jordan will Securities. with

Jordan Levy

things commentary, quickly, capture is great seems carbon that certainly from thanks quickly relatively guys and for on hear be business talk team. to I the to want encouraging. for new Hi all of the which definitely to all side progressing a

wells and capture agreements get themselves outside Just requirements secure third-parties you sense injection the off-take a all with how are and there as want volumes. the capital to you the work of about of thinking to for internal

Eric McAfee

well’s million each million couple and consultants in a process, on. our process permitting XD some spend and $X to wells, is carbon dollars of other the budget and XD characterization Our with and two about build seismic going plan sequestration is the stuff

depending and an process. the So positioned the about license two We highly XX would month a year. be by EPA wells next classics process, empirical how their the gives to get then resources getting variable $XX we EPA characterization data of on in think potentially front well opportunity the a all-in, it’s end us we of And estimate an actual But actual to Renewable the for about that’s actually would well equity be injection million. of process, Department match capacities. able the funding would million America of program, X After million wells in of USDA programs that or XXXX. as with $XX underground Energy DoE The of $XX tons per be the to that to USDA the year funding as several though, drill build Energy funding million.

debt. for direct point, that CapEx companies wells the that’s basically have tons couple million So, bring we XXX,XXX ground government ground that would other contracts and from major above existing biofuels the and At would we or we with do capacity above incur that – have of funded have cementing into casing, would with capture loans. then would of year equity well a and negotiating will that DoE companies the for been USDA and plants additional that compression. oil Once injecting and $XX per be air our using compressing online, development and have ground equipment, we funded up guaranteed of actually

to So, just million would roughly above million it flow units a compression of would construction COX. the that about that have upon below our secondary ground off But And then running $XX from million would revenue. be – base point in the business be I $XXX is financing. estimated the completed. revenue, be above of own ground cash am installed. we a $X at time sorry, presumably that of But

create the it’s to two to you fairly this have flow phasing have drilled is doing we So that as in classics The debt finance EPA advantage that, reason no license. range even that, of positive characterizations this we are amount we of phases. control to that designed reflective of And carbon of gives is prices company doing you tremendous for debt Take and of the the cash for number with can we done that the shareholder the But think price rest a see, months easy with is, offering And only the projects process. wells we ourselves have what amount real we of be use to the risk this getting value Once a value, we in our or this biogas are achieve. large we two I significant where budget it. and generates and of potentially a this getting as financing well of up in of to at shelf raise reflecting can rest continuing generate is renewable certain things have equity are the any to the of million from the significant of to COX the XX off-take a do this is appetite we the equity any which with a dilution appetite that diesel have increases without milestones are us to set next operation just not doing equity do and idea raise of significantly fund shareholders. we sequestration. with $XX our agreements valuation are flexibility, other positioned

Jordan Levy

on to of for just to changing XX-Q, on into remarks. XXXX, I question your ability prepared nice maturities some next my Thanks of structure. the that, I in much you the noticed side recent your your extend a And Eric. segue around things. talked in financing that’s your debt and briefly this know And wording to

the then you on? color as sort a of And projects simplifying Just that. on get want as some a that additionally, to move might little structure and of some longer the of options what of forward term you means team are more look growth working into debt

Eric McAfee

Sure.

the Eye a amendments has relationship. plus with have that of course relationship what, in that Third Capital had more XX-year XX than We

past extended this and have focus gas of conditions And those get are to are climate in months. out have market focus certainly we over renewables of seeing in market. on and in XX now transition yes, environmental, projects. ESG that that lot now appetite the brought additional And in capital such capital a so has governance for But a investors social the And kinds change oil looking market. relationship formerly we become

million also So, the at traded X.X% Sunnova again we $XXX bond a offering. green post recently we an X.X% be company, but saw trading at week a And green Renewable that and million rate with solar this Energy Group solar side OPA complete $XXX about is with bond, well, discount, saw well. complete was seems interest to

seeing new those that we side confidence are shows of And And balance of the one companies be come into of debt regulatory And well It development. bond energy these I in institutional sheets companies. this company positioned so investors is under. our renewable the participants. think rather is green to a the framework operate a

bonds in United As District, Energy of already green activity the the California the to three the mentioned, we already States are and I in, Pollution addition are Ag, have well Control as Department of bond private Department market. markets,

capital to in be costs. cash lower with some investment certainly diligently And world’s financing, banks consider longer our working are we the leading our we simplify structure to looking with of what but So, term markets. these

positioned quarter year. to current in the invest the that well in equity can we growth. our marketplace And of strategy think fourth and third in I this be successful So, is quarter

Jordan Levy

well. Eric. Thank and you Todd, as you, And thank very Andy much,

Todd Waltz

Thanks.

Eric McAfee

Thank you.

Operator

next our Todd question go Firestone Please take will We Evercore. with ahead. from

Todd Firestone

into can if I Thanks think of should XXXX? for a taking for had what what couple of just – ‘XX trying to my the be little be should be color second in what Riverbank, looking next provide the things, about we half of a could or at question. catalyst

Eric McAfee

agreements offsetting renewable as I QX it well announced we sustainable think as for are There in, fuels. aviation late was diesel

of bidders currently business. we for going fuel. airlines relationship have in be three multiple it in basically airlines sustainable aviation with. actually forward And active that let’s negotiations contract But a currently renewable are renewable with our off-takers to are three have which are diesel primary we We we diesel selecting and we call consortium moving very

the engineering. QX be would be be of we expect some progress going that of and matched year. to very have in the expect currently on I quarter, those disclosure continues towards going agreements to of engineering next is third in business. milestones, milestones I So, achieve event permitting are to today those some would we And a move of off-take which made about gave the with a I side the financing, steadily project closing would

So, that’s possible. from slight QX definitely a slip QX. But is

this the We of have kind COVID re-ignition commercial it And of seems news. government slowdown a lenders. just seen to and

currently of next year is to So, it’s I project think QX when occur. is expected financing

Todd Firestone

the business transition thanks. on the materially happen real just needs kind how improve to of color That’s higher step color a generation and is what business and How that timing of market. change there it of revenue? a revenue XXXX on maybe to little today of size great, a Maybe or India, a think to there can just we about can you gave bit quite of one the

Eric McAfee

could There that COVID the is be India Number simply despite government for us. things is one two delays. opportunities the for upside

policy, Moving change. billion we is that’s point already gallons a And X% its country. have enforce is number in meet and Certainly steps claiming showing change. recent increasing the factors right steps which been slow is billion want that that with the direction, aggressively more right United report just the national X.XX more That’s than is its one everybody climate would Indian factor lead current There is Nations a lot government are to that slow. the gallons us, on current of the about climate blend, past return forward biodiesel. biofuels law. no of the focus its capacity really for on the the issuing There of to

The would feedstock second fall be a in prices.

We have current tallow. a sourcing, which in basis. could of more And that production in be a process as in are I through going potentially mentioned, expanded using we we much

feedstock us strategy well India. And growth is costs, lower that part to local the could rapid of in certainly our so position access for

one together, rapidly could coming expand of India our or both those plan. either So,

Todd Firestone

That’s you. I Thank appreciate it. great.

Eric McAfee

you. Thank Sure.

Operator

take ahead. our next will Please question go Woo We Ed from Ascendiant Capital. with

Ed Woo

yet? Yes. Thanks question. any revenue housekeeping for question, taking the quick recognized project my A guys have biogas from you

Eric McAfee

plant. that showing currently our ethanol are through We

We that biogas are using to run plant. our ethanol

lower But through monetized So, right approved. being our we ethanol get pathway ethanol it’s is that revenues intensity carbon now. now our

Ed Woo

And the how Great. doesn’t what that changes in last do as impact that will price your the If oil price absent then is, would my renewable how of fuel question ethanol you the you view change, standards? of any impact business? oil? And

Eric McAfee

be follows have a which ethanol. Renewable the is XX administration What Federal July a have plus XXX is materially I million of of Court the of the definitely Biden don’t strong would Federal price think to impact impact by material year, oil going on will The enforcement court directly in Standard, law. Fuel gallon simply per billion issued order a XXXX. gallons very

think have a ethanol our impact And demand, gallon in has will market the demand market. on the molecule. robust margins will current that XX.X billion direct We the which be for most a I very

Ed Woo

Well, Great. answering thank luck. my for questions you good and Alright.

Eric McAfee

you. Thank

Operator

Stonegate Capital. ahead. take next from will go with Rodriguez Marco our We Please question

Dillon Wagner

you wanted this provide guys, Dillon in Motors. I my in Marco quick to update investment you a all Hi if can Nevo on taking your just today. for see Thank question. is filling Wagner for

Eric McAfee

Sure.

radar sequestration strategic specifics carbon primarily in a entering rapid of of including which Nevo ownership business, screen, our core Nevo after the the we of of Motors activity. business, operation And Nevo. off occurred our the expansion have have We the kept because the

So, extenders get attention. Nevo has a to stated investor of goal strategy electric continues of biofuels already for range lot And a that trucks. as using

biogas Aemetis’ existing XX% we things shareholders at little And than the utilizing very a facilities it’s so we at fueling and own our have at see future the as of that of Nevo structure and we beneficial will Aemetis company. be other of less activity than Riverbank that But and cash. rather

an being that line see some existing want product because biofuels application own shareholdings in XX confused implemented. how public of And business. over that – of range core be is and will highlighted somehow electric company have that more that not next is so Nevo the some our expanding disclosure strategy expectation we extender because is investors the don’t Aemetis we our our truck But we months, we to

Dillon Wagner

Got There the how sales. lot to are question. are news trend governments this you big just drive of it. levels been in business? your kind climate by vehicle of significant electric more of and impact change automakers all one to a of And has looking at pushes then discussion and And

Eric McAfee

not is frankly, carbon in investors electricity make gasoline. petroleum electricity is do that’s States that coal, which gas, at intensive event natural than, as or are very made think increasingly carbon you Over from I more of highly something the how XX% looking intensive. United

of negative and is easily most electricity biogas displaces XXX the source for carbon gas energy our a world negative vehicles. had in carbon So, the one petroleum as intensity sources electric better natural certainly

step as intensity vehicles And Running issue. vehicle are or to charging is that to and become of central coal is electric coal carbon models a increase going initiatives gasoline in number. these diesel. electric rapidly so isn’t think adopted forward infrastructure I higher on The of intensity expand carbon fuel necessarily a that when than

that And think had market the And as heavier ends electric carrying about as Nevo electrical think start you biogas that just I our up the gasoline, so and discussion electric I has Motors, cargoes, carbon our capacity vehicle a of revolution extender. and feeding more an vehicle we opportunity, range expanding vehicles is being range the petroleum the ends petrol or vehicle batteries, demanding range more and that of and extender needs of up diesel, impeded. intensity That larger revolution.

farther having the and such opportunity for contain. make our batteries biofuels, as used cargo your what to So, be an less or to ethanol, vehicle go basically can range electric carrier extenders you in than end up heavy biogas

out by also from., range or what up being biogas and incorporate primary from, carbon have electric in the energy of discussions really playing do come negative gasoline gas really we are carry to that to longer what climate originally XXX intensity that that going the the it’s Aemetis as vehicle no was natural diesel is vehicle, of essentially. wall I biofuel And end or understand a and driver the up electricity electric fighting both come at not Aemetis change understanding whether investors people was drivetrain. batteries So, going is from is fuel electricity these carbon start But a where question can role here. end it to it’s run drivetrain socket think when It’s extender a really sources can what it about the coal, intensity, obtained or even the the increasingly vehicle. really petroleum, electricity

Dillon Wagner

color. I Got Thanks. the appreciate it.

Eric McAfee

Dillon. you, Thank Sure.

Operator

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

Eric McAfee

and analysts joined Aemetis appreciate others thank you Aemetis corporate future. We to forward talking the Please on look the the opportunities is us in at and review about with the which today. shareholders who you. in Alright, the growth And participating Aemetis presentation Aemetis we website.

Todd Waltz

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

Operator

We teleconference. today’s you your conclude participation. does thank This you. for Thank again

You this may lines have and day. a great disconnect your time at