Aemetis, Inc. reported that its subsidiary, Aemetis Biogas LLC, received net cash proceeds of approximately $15 million from the sale of $17 million in federal clean energy tax credits. The transaction included a $12 million Section 48 Investment Tax Credit tied to a dairy manure digester and a $5 million Section 45Z Production Credit linked to renewable natural gas production in 2025.
The sale follows a history of monetizing tax credits, with prior ITC transactions totaling $95 million. Aemetis also expects a transferable Section 45C credit of $10.5 million in 2026, underscoring the company’s strategy to use federal incentives as a recurring cash source.
The $15 million infusion is intended to support expansion plans and address debt maturities, but the company continues to report significant net losses and a high debt burden. The cash will help shore up liquidity while the firm pursues growth in biogas, renewable natural gas, sustainable aviation fuel, and renewable diesel.
Eric McAfee, Chairman and CEO, said the transaction “represents an important step in monetizing federal clean fuel transferable tax incentives and establishing a new recurring source of cash flow.” He added that future Section 45Z transactions are expected to further strengthen the balance sheet and support job creation.
Investors have responded cautiously, citing the company’s ongoing financial challenges, including persistent losses and high leverage. The market reaction reflects concerns that the cash infusion, while significant, does not resolve underlying profitability issues.
Aemetis’ reliance on tax credit monetization signals both an opportunity and a risk. While the credits provide a predictable cash stream, the company’s long‑term viability will depend on its ability to convert renewable fuel production into profitable operations and to manage its debt profile.
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