Aemetis, Inc., a renewable natural gas and biofuels company, announced today that California Governor Gavin Newsom signed Assembly Bill 30 (AB30), which immediately allows 15% ethanol blending in gasoline and expands the potential California market for ethanol by 50% by increasing from an E10 to E15 blend. According to a UC Berkeley/Naval Academy study, a 15% ethanol blend could decrease gasoline prices at the pump by $2.7 billion per year and save consumers about 20 cents per gallon, as per the press release.
“E15 approval in California is a smart move to help families save money at the pump and advance the state’s renewable energy and environmental goals,” stated Eric McAfee, Chairman and CEO of Aemetis and a Board member of the Renewable Fuels Association (RFA). “E15 increases the amount of lower cost, high octane renewable fuel while reducing emissions from conventional gasoline.”
“Thanks to Gov. Newsom’s leadership and decisive action, California is on the road to lower gas prices and a cleaner future for families across the state,” stated RFA President and CEO Geoff Cooper. “Many other states have already seen the benefits of E15—healthier air, better engine performance, and cost savings at the pump. Now, California drivers are able to experience those same advantages for themselves, and we thank Gov. Newsom for voicing his support for E15 throughout the legislative process. We likewise thank the bipartisan California Problem Solvers Caucus and the bill sponsors, Assemblymembers David Alvarez and Heath Flora, for working to open the California fuel marketplace to cleaner and more affordable options.”
Aemetis owns and operates a 65 million gallon per year ethanol facility in California’s Central Valley near Modesto. With E15 now approved, more ethanol can be blended into gasoline, supporting in-state production and helping reduce the cost and carbon intensity of transportation fuels in California.
Aemetis continues to invest in clean fuel growth in California. The next phase of investment, adding a $30 million mechanical vapor recompression (MVR) system to its ethanol plant, is projected to reduce natural gas usage at the Keyes plant by 80%. The MVR system will reduce ethanol production emissions and production costs while increasing LCFS revenues and 45Z production tax credit income. After implementation of the MVR system in 2026, the Aemetis Keyes ethanol plant is expected to improve cash flow from operations by $32 million per year.
