Aemetis Expands California Dairy Biogas Network
The company has added two new dairy digesters as its renewable natural gas project across California continues to grow.
Updated on Oct. 26, 2026 in Organic Food
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Aemetis now operates 14 active dairy biogas digesters in California, receiving manure from 17 different dairy facilities. The company aims to scale its network to include 50 total dairies as it processes waste for pipeline injection.
Why it matters
By converting dairy waste into renewable natural gas, the project provides a sustainable fuel source while helping the dairy industry reduce its environmental footprint. The infrastructure expansion supports the state's broader goals for low-carbon transportation fuel.
Aemetis maintains a 36-mile biogas pipeline network with an annual production capacity of 600,000 MMBtu. The project currently holds seven approved LCFS pathways with an average carbon intensity of negative 328.
The players
Aemetis
Aemetis is an advanced renewable fuels and biochemical company focused on the production of low-carbon transportation fuels.
NPL Construction
NPL Construction is a utility contractor that provided 14 biogas cleanup and compression systems for the project.
PG&E
PG&E is a major California utility provider that manages the gas network where the upgraded biogas is injected.
The details
The biogas network transports waste-derived gas to a central upgrading facility in Keyes, where it is processed for injection into the PG&E gas network. Aemetis also reported generating $22.8 million in Section 45Z tax credits as of August 2026.
Timeline
California LCFS credit prices were $42 per credit in July 2025.
Aemetis generated $22.8 million in Section 45Z tax credits in August 2026.
California LCFS credit prices reached approximately $90 in October 2026.
RNG deliveries to truck fleets are scheduled to begin in November 2026.
Culture Shift
This project reflects a broader transition toward sustainable waste management within the agricultural sector, moving away from traditional manure handling toward energy-producing infrastructure. It aligns with the California Low Carbon Fuel Standard, which incentivizes the adoption of low-carbon fuels to replace petroleum-based energy.
The transition to renewable natural gas could eventually offer cleaner fuel alternatives for regional truck fleets, potentially impacting transportation costs. The availability of RNG could serve as a sustainable replacement for diesel as the network scales across the state.
The takeaway
Aemetis is scaling up its biogas infrastructure to capitalize on the increasing market value of carbon credits in the state. By turning dairy waste into fuel, the company aims to offer a competitive alternative to diesel for regional transportation needs.
What happens next
RNG deliveries to truck fleets are scheduled to begin in November 2026.
Further reading
Learn more about sustainable farming initiatives in California Organic Food.
Live Poll
Should states invest more in converting agricultural waste into renewable natural gas for transportation?
