Aemetis Q2 2025: Unraveling Contradictions in 45Z Tax Credits, India IPO, and LCFS Strategies

Revenue Growth and Segment Performance:
- Aemetis reported $52.2 million in Q2, up $9.3 million from the previous quarter, driven primarily by biodiesel and dairy RNG segments.
- The increase was mainly due to higher volumes of biodiesel deliveries and enhanced revenue recognition from dairy RNG facilities.

Ethanol Production and Pricing:
- Ethanol production at Aemetis was optimized for margin maximization, leading to a 13.8 million gallons production rate during Q2.
- Improved ethanol pricing and lower corn prices contributed to increased margins, allowing for a greater production rate to meet market demands.

Dairy RNG and Tax Credit Revenue:
- Dairy RNG received $3.1 million revenue during Q2, with an anticipated increase due to the approval of 7 dairy pathways at a blended negative 384 carbon intensity score.
- The higher carbon intensity score resulted in about 120% more LCFS credit revenue compared to default pathways, enhancing revenue potential.

India Operations and Expansion:
- Aemetis India shipped $11.9 million of biodiesel and co-products in Q2, with a target for an IPO in early 2026.
- Expansion plans include ethanol production, strongly supported by Indian government policies on ethanol and biodiesel.