Aemetis receives Initial Resolution for $1.1bn in tax exempt bonds from Capital Programs & Climate Financing Authority (CPCFA)
Aemetis, a US based renewable natural gas and biofuels company, announces that the Capital Programs & Climate Financing Authority (“CPCFA”) in California has adopted an Initial Resolution for potential future issuance of up to $1.1bn of tax-exempt bonds.
Adoption of the Initial Resolution means Aemetis meets federal tax requirements so that funds from any tax-exempt bonds issued by CPCFA can be used for qualified costs incurred after the date of the resolution and for certain prior development costs.
“This Initial Resolution adopted by CPCFA further confirms the value of our projects, which reduce emissions, lower fuel costs, and create jobs and economic growth in California,” said Eric McAfee, Chairman and CEO, Aemetis. “The use of tax-exempt bonds at lower interest rates than other sources of financing has potential to enhance our financial position as we implement a variety of projects that are expected to strengthen our balance sheet and generate profitability.”
The projects under the initial resolution include sustainable aviation fuel (SAF) and renewable diesel (RD) and underground CO2 sequestration facilities in Riverbank, California. 40 additional dairy digesters and biogas pipeline connections to the company’s renewable natural gas (RNG) facility in Keyes, California are also covered.
The Initial Resolution states intent for the CPCFA to issue bonds to Aemetis, there will be no guarantee until final documentation is completed.
Issuance of tax-exempt bonds requires allocations from a statewide volume limit. Though the resolution states CPCFA’s intent to issue bonds, the adoption of the Initial Resolution by the CPCFA does not guarantee that the CPCFA will ultimately approve financings until final documentation is completed.
Aemetis owns and operates a 65m gallon a year ethanol production facility in the California central valley and an 80m gallon a year facility on the East coast of India.