Welcome to the Aemetis Second Quarter 2021 Earnings Review Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis, Inc. Mr. Waltz, you may begin.

Thank you, Terrene. Welcome to the Aemetis second quarter 2021 earnings review conference call. Joining us today for the call is Eric McAfee, Founder, Chairman and CEO of Aemetis; and Andy Foster, President of Aemetis Advanced Fuels. We suggest visiting our website at aemetis.com to review today’s earnings press release, corporate presentation, filings with the Securities and Exchange Commission, recent press releases and previous earnings conference calls. The presentation for today’s call is available for review or download, on the Investors section of the aemetis.com website. Before we begin our discussion today, I’d like to read the following disclaimer statement. During today’s call, we will be making forward-looking statements including without limitation statements with respect to our future stock performance, plans, opportunities and expectations with respect to financing activities and execution of our business plan. These statements must be considered in conjunction with the disclosures and cautionary warnings that appear in our SEC filings. Investors are cautioned that all forward-looking statements made on this call involve risks and uncertainties and that future event may differ materially from the statements made. For additional information, please refer to the company’s Securities and Exchange Commission filings which are posted on our website and are available from the company without charge. Our discussion on this call will include a review of non-GAAP measures as a supplement to financial results based on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable measures is included in our earnings release for the quarter ended on June 30, 2021, which is available on our website. Adjusted EBITDA is defined as net income or loss plus to the extent deducted in calculating such net income, interest expense, gain on extinguishment, income tax expense, intangible and other amortization expense, accretion and other expense of Series A preferred…

Thank you, Todd. As we discussed the results from Q2 2021, I encourage you to consider viewing the Aemetis corporate presentation, which can be found on the homepage of the aemetis.com website. Aemetis is focused on producing below zero carbon intensity products, including the production of negative carbon intensity renewable natural gas and renewable fuels. Our projects maximized the value of carbon credits under the California Low Carbon Fuel Standard, the Federal Renewable Fuel Standard and IRS 45Q tax credits, while reducing operating costs by using waste materials as feedstock. We own and operate production facilities with more than 110 million gallons per year of production capacity in the U.S. and India. Included in our production portfolio is the largest ethanol plant in California, a 65 million gallon per year fuel ethanol plant located in Keyes, California near Modesto that we leased in 2009 retrofitted for 18 months, started operations in mid-2011 and have owned since 2012 when the original shareholders converted their ethanol plant ownership into about 10% of the common stock of Aemetis. We also built, owned and operated 50 million gallon per year capacity distilled biodiesel and refined glycerin biorefinery on the East Coast of India, near the Port City of Kakinada. This plant was designed to use vegetable oils and animal tallow feedstock and Aemetis has unique access to low carbon intensity, low cost renewable waste oil feedstocks in India for use domestically or for export to use in our future California production plants. We work to improve our communities in which we operate by reducing air pollution and offsetting the carbon emissions that contribute to global climate change. Our capital investments and the ongoing operations of our biofuels digester and production plants create thousands of direct and indirect jobs, feeding and housing hundreds of families…

Thank you, Eric. As Eric mentioned, at Aemetis, we are focused on producing below zero carbon intensity products, including negative carbon intensity, renewable natural gas and renewable fuels. A prime example is our dairy-based renewable natural gas business, which will mark the 1 year anniversary of commercial production in September. RNG is a negative carbon renewable fuel that perfectly exemplifies the circular bioeconomy that Eric often refers to when describing our approach to reducing greenhouse gas emissions, while producing sustainable below zero carbon transportation fuels. The RNG initiative has many synergies with our Keyes ethanol plant, which uses agricultural feedstock that absorbs CO2 from the atmosphere during plant growth from which our production facility produces ethanol and high value animal feed. The ethanol – the Aemetis ethanol plant produces about 65 million gallons per year of renewable ethanol, but also produces about 2 million pounds per day of wet distillers’ grains that supply about 80 local dairies, which feeds more than 100,000 dairy cows. Those cows eat renewable feedstock produced by Aemetis and create waste which in turn produces methane. Aemetis captures the dairy methane emissions by building large covered anaerobic digesters. We then transport the biogas via an Aemetis owned pipeline to the Aemetis ethanol plant, where it is used as an energy source for ethanol production or is upgraded to produce renewable natural gas for use in transportation. In addition to supplying compressed natural gas stations throughout California, RNG from Aemetis can fuel RNG trucks at our Keyes plant to carry our wet distillers’ grains to the 80 dairies as well as transport biofuels to customers throughout Northern California. This process is a sustainable, negative carbon intensity circular bioeconomy that productively uses dairy waste as fuel and significantly reduces air pollutants and carbon emissions state-wide. Trucks can be…

Thank you, Andy. Let’s review our new subsidiary, Aemetis Carbon Capture. In October 2020, the Aemetis plant in California was identified in a study issued by the Stanford University Center for Carbon Capture as one of 3 ethanol plant CO2 sources in California that have the highest potential return on investment from building a carbon capture and sequestration facility compared to the oil refineries, cement plants and natural gas power plants that comprise the 61 largest CO2 emission sources in California. Our ethanol plant already captures about 150,000 metric tons per year of CO2 and already compresses the CO2 in the Messer liquification plant into transportable liquid carbon dioxide from which we already generate IRS 45Q tax credits for CO2 reuse. We are now completing a 2-month confirmation review of the underground CO2 sequestration formations that were cited in the Stanford study. We have determined that the Keyes plant and the Riverbank plant sites are located above about a 7,000 foot deep strata known as a cap rock and an 8,000 foot deep strata known as a basement rock. Between the two layers is a salient formation that was cited by Stanford as ideal for carbon dioxide sequestration. Over a long period of time, the CO2 reacts with salient to form a mineral that is permanently sequestered underground and does not return to the atmosphere. We expanded the team managing Aemetis Carbon Capture subsidiary by adding Mehagan Hopkins as a Manager of Regulatory and Compliance to lead the EPA Class 6 CO2 injection well permitting process as well as manage other permitting and regulatory opportunities related to the Riverbank site and our jet diesel plant development process. In addition to California permitting experience for industrial and commercial projects, Mehagan worked at Chevron for 10 years and recently managed Chevron’s global…

Thank you, Mr. McAfee. [Operator Instructions] We’ll take our first question from Manav Gupta with Credit Suisse. Please go ahead.

Hey, Andy, thank you for the update on the RNG developments. It help us understand this a little better. You expect to have 17 dairies online by the end of 2Q, ‘22. Your pipe is coming in by the end of the year your RNG trucks are coming in by the end of the year, instead of these few of these dairies can come online by end of 4Q and similarly from some dairies 1Q, like should we expect all 15 to turn up in 2Q of ‘22? Or will there be a ramp here? And if you could walk us through the ramp

Yes, Manav, in my remarks I said that they thought we would be getting the next five dairies on by the end of by Q2 of next year, not the entire 15. So we’ll begin construction on the next five within – I’m going to guess within the next 30 to 45 days depending on our permitting status, if we can get the subsequent five after that done, we’ll begin them at the end of this year or the beginning of next year. And then we’ll sequentially go from there. So I think the goal is to have everything completed by the end of 2022 not by the middle of 2022.

Okay, so end of 2022. Okay fine. And also help us understand your overall aim to hit with the Phase 3 52 dairies. How many have you already signed up? Because the way we see it, you have two advantages. You have a pipe and you have existing relationships on the – with the farmers, but then there are some bigger players with bigger balance sheets. So how many more dairies do you need to sign up to get to that 52 and do you think you’ll be able to do it when there is competition from the bigger players?

So currently we have about 18 dairies that are either under contract are in process of being under contract or will be under contract with or with leases signed by all the next 30 days. We’re in discussions with I want to say at least 20 more dairies that were in various stages of discussion with, some that are located near the pipeline, and some that are not, some that are further away that we would be able to service in different ways going forward. So we’re still finding a lot of interest from the dairies. I think California, carb put out a report. I was believe it was a week or two ago that essentially indicated that the dairy industry was not meeting its goals as per Senate Bill 1683 in terms of the overall reduction. So I think that got a lot of people’s attention. We’ve been hearing from dairy owners that they’re concerned about this. So I think the market continues to be strong for us. And we’re meeting – for meeting a lot of new dairies. So, to be honest with you, I’m finding that time is the hardest part in getting out to meet all these folks. But we are still getting a lot of interest. And I don’t see any challenge in us hitting the stated goal in terms of the overall build out certainly not within the next year, but as Eric had announced the 5-year plan, we expect to be able to stay on track with that.

Okay, and the last quick follow-up for Eric is, Eric, you have a guidance out there of $325 million EBITDA, which has no contribution from carbon capture and sequestration. But even if they stick to $325 million, is there, in your opinion, anything that has changed, because of which you think that $325 million will not be achievable, excluding the carbon capture and sequestration?

No, I would say that the only thing that has had any material impact of the company over the last 6 months is that there’s generally been a lack of enforcement of the Renewable Fuel Standard by the Biden administration. And this is a bit of a vote that the Wall Street investors as they making is that they’ve been voting in favour of the idea that the Biden administration would comply with federal law and fully enforcing RFS. Michael Reagan’s appointments at the EPA was specifically conditioned upon him saying to Congress that he would fully enforce federal law, including the Renewable Fuel Standard, and he was asked that question by Senator Grassley. We are now in August of 2021. And the renewable fuel standard requires in November of last year, the renewable volume obligation would have been announced, is now August and is not been announced. And this is a bit of a test. I think Wall Street is watching it closely on how the Biden administration supports the two federal court orders that have stated the EPA has been in violation of the RFS and now they used to comply with the RFS. And so we as an industry are watching that closely as well. I think we’ll do fine as a medicine. But as an industry, this should be a very strongly sustainable profitable industry today, this minute by enforcing federal law, and we have not seen that yet. So that’s an upside that I’m looking forward to seeing happen. I would say that upon that enforcement, the $325 million becomes very, very comfortable within the range of what we’re achieving here. Without that enforcement, we hit the $325 million. But it’s just the last opportunity that the president should recognize and should follow-up on his campaign commitments and enforce the RFS.

Thank you so much for taking my questions, Eric.

Sure, thank you, Manav.

We will take our next question from Derrick Whitfield with Stifel. Please go ahead.

Thanks, and good afternoon all.

Hello, Derrick.

Beginning with your carbon zero business, I wanted to focus on a couple of feedstock comments from your prepared remarks. With the year-to-date increase we’ve observed in feedstock costs across the U.S. I want to ask if you could share your views on the global feedstock markets and speak to the opportunities you can pursue to mitigate some of those feedstock pressures at your Riverbank plant?

The jet and diesel feedstock is different than our current ethanol businesses, as you know our ethanol business uses sugar currently derived from corn starch. In the future waste wood is also going to be expected feedstock use for that. But the vegetable and animal oils which are used in renewable diesel and sustainable aviation fuel, our as you know, a highly competitive feedstock marketplace. We are uniquely positioned because in India, the India is the second largest exporter of meat in the world and produces a significant amount of animal tallow. But that tallow product is very difficult to transport it is essentially a solid at room temperature. And so transporting 1,000 miles and then converting it upgrading it to meet the technical specifications of renewable diesel production. And much less transporting across the Pacific Ocean has been a very significant barrier to its use in renewable products. However, we’re the largest biodiesel producer in India, we’ve operated our plant on animal tallow and have relationship with a market player that has controlled over about 70% of the market, and is seeking a special relationship with a company that has the infrastructure and the approvals to be able to use tallow. So not only can we use tallow in our India plant, but also quite frankly, export the product to California for use in our plant in California. So we plan to use that a unique access to over 1.3 billion people’s use cooking oil and, and tallow waste product to be able to supply our California plant with what is today. And I do expect this to continue a very significant discount from the current price of feedstock to use for renewable diesel production.

Terrific, and it sounds like certainly a great positive for your business. Perhaps shifting over to the financial side of the equation, could you comment on the general purpose of the mix shelf you followed in late July and speak to your interest in raising equity at these levels?

Todd, you will talk about that?

Yes, I’d be happy to. So the shelf is a is a tool that I think you’d see a lot of companies our size, put up and race we are – we have it set up as is a general purpose shelf covering a variety. We have it, we have mostly put it in place so that when we see that the markets are sort of available and favourable to us that we can file an instrument and take advantage of it. It takes a while to get a shelf together and up. And so we just we put it up recently just as part of sort of overall corporate hygiene.

Sure, it’s very helpful. Thanks for your time, guys.

Thank you.

Thank you, Derrick.

We will take our next question from Amit Dayal with H.C. Wainwright. Please go ahead.

Thank you. Good afternoon everyone. Eric, with regards to the timeline for the initial setup of your 17, 18 dairy digesters. I think in the earlier part of this year, you said these will be coming online by the second quarter of 2022. Now the timeline seems to have moved towards the end of 2022. Could you help us understand what’s driving some of this push out? Is it just permitting issues? Is there any anything else that we should be aware of?

Actually, I wouldn’t even say it’s permitting issues. Andy is just being I think accurate in that. Our current visibility is it will take all of 2022 to put 15 digesters in the ground. The reality is our execution is on time with our biogas upgrading unit, our PG&E injection unit in our RNG fueling station. And digesters in and of themselves are not a particularly difficult thing for us. There is not a technology or other challenge. So it’s largely up to how fast our contractors execute. And we could see an upside to year end 22 forecasts, but I don’t think today we have visibility into what that timing is. So, I think Andy accurately is assessing our current view, which is it could easily take us into third or fourth quarter next year to complete all 15 of them. But there is certainly an upside to that if we see the contractors move a little quicker than otherwise expected. We are still operating in COVID. And I think unfortunately and probably unexpectedly, there have been new restrictions on operations in California. Those currently are not hampering our process, but seem to show up in surprising ways if we are trying to access labor for these projects. So, I think Andy accurately assessed that the third and fourth quarter next year would be a wrap up of those remaining 10 digesters. In general though, we continue to do the most difficult part of the process, which is the upgrading unit, the interconnection unit, and the RNG fueling stations on schedule for completion this year. And then it’s just a matter of this commodity process of installing the digesters at the dairy and interconnecting to our pipeline, which again we are also building. So the most difficult part is getting done, the easiest part is simply a labor and execution phase of digester construction.

That’s understandable. So in terms just getting a better handle on when you potentially can start recognizing revenues from these digesters, when all of these common online. Should we be looking at those revenues to be recognized in 2023 or will they start sort of slowly ramping in 2022 itself?

Yes. No, so it’s a good question. And I guess it gives me the opportunity. This is Andy, by the way to further clarify what I was talking about earlier. So, we have gotten the permit to build the pipeline. We have a 12 month constructions schedule for 32 miles of pipeline. Most of the contractors have told us they can do it in 10 months. We are building in a little bit of flip time there because you don’t – you just don’t know what’s going to happen when you start digging in the ground. But we will start construction on the next five dairies which, as I said, within the next 30 days to 45 days. The digesters actually go along pretty quickly. It doesn’t take very long to build the digesters, especially with the weather we had in California, everything is pretty dry. So, it’s – the digester is fairly easy to build. So, we are going to build the pipeline in segments, as we add the dairies. And so Stanislaus County is 21 miles. We are going to be building that out. And the dairies that are the next five dairies that are connected to that will be obviously the priority, the first part of the pipeline that’s going to be built. So, as we get into the spring of next year, and start bringing those first these next five dairies on to online and it could be February, depending on the kind of winter we have, that does have a little bit of impact as you are digging the digesters in the pipeline. But let’s assume that, if I am reading the weather correctly, they are saying that’s going to be another La Niña year, which means it will be dry in California. We have a favorable construction season. We will start recognizing revenue from those digesters as they are brought up. We are going to be able to start transmitting gas through the pipeline. We will have our PG&E connection by that point. And we can start. As we bring on the next five dairies, we will start recognizing that revenue. And then as we bring on the five after that we will start bringing in. And so it’s not a wait till the end until we start doing that. It will happen sequentially as we bring these new digesters online.

Understood. Thank you for that.

Did I answer your question?

Yes, yes.

It’s okay…

Just last one for me, guys. On the CapEx side, with the progress you are making with permitting and getting everything ready. On the engineering side, is a lot of that CapEx going to be felt in 2022 or will that start already showing up in ‘21 itself?

We announced about $12 million of CapEx in the first two quarters of 2021. I would assume we were going to - we haven’t done the math on it. But we will see another gas cleanup unit and pipeline other stuff. We will probably see another $20 million plus, in the second half of 2021, maybe $30 million. And I think about gas, upgrading some other things. And then in 2022, first two quarters will be completion of the pipeline. And that will add another $12 million plus of the digester. So, we are seeing quarterly of roughly $10 million a quarter of CapEx happening.

Thank you. Very good. That’s all I have. Thank you so much.

Sure, thanks. I should remark again, these are one-time costs. We have a gas in upgrading, interconnect RNG fueling stations, even the pipeline are sort of one-time that then get spread over the digester. So, after this cycle of construction that Andy was talking about, then we just have the onsite dairy digester and hydrogen sulfide cleanup that interconnects to the pipeline. So, with the pace of our digester construction is expected to accelerate, as we move into that phase right now, bringing out a dairy digester in the next 30 days would generate no revenue at all, without the pipeline and interconnection. So, our rollout here is to get pipeline and interconnection in our first three dairies started immediately and then scale up with additional digesters. And as Andy mentioned, he didn’t put a timing on it, but building a digester is a 90-day to 120-day process as long as you have reasonably favorable weather. So, it’s not a long 1 year process we are doing.

We will move to our next question from Jordan Levy with Truist Securities. Please go ahead.

Hi guys and thanks for all the commentary, definitely great to hear from all team. I want to talk quickly on the carbon capture side of things for a new business that seems to be progressing relatively quickly, which is certainly encouraging. Just want to get a sense of how you are all thinking about the capital requirements there outside of the injection wells themselves and as you work with the third-parties to secure off-take agreements and for internal capture volumes.

Our plan with our carbon sequestration process is to build the two characterization wells, each well’s budget is about $4 million and spend a couple of million dollars in the permitting process, consultants and 2D and 3D seismic and some other stuff going on. So all-in, it’s about a $10 million. We estimate about an 18 month process, that’s highly variable depending on how the EPA resources their process. But we think getting two characterization wells and the empirical data in front of the EPA gives us an opportunity to potentially get a classics license by the end of next year. And we would then be well positioned to actually drill the injection wells in 2023. The actual process, though, of equity funding would be the $10 million. After that the USDA Renewable Energy for America program, as well as several programs of Department of Energy would be able to match that $10 million with DoE funding or USDA funding to build the actual 1 million tons per year of underground capacities. So, that’s the casing, cementing and the other well development will be funded using government guaranteed debt. Once we do that we have 400,000 tons per year of capacity from our existing biofuels plants that would have up ground – above ground equipment, compressing that and injecting into the wells and would have been basically funded with $10 million of equity and then USDA or DoE loans. At that point, we have contracts for negotiating with major oil companies and actually a couple of direct air capture companies that we would bring online, and would incur additional CapEx for above ground compression. So, the above – the below ground construction would be completed. But the above ground compression units would then be installed. And that would be a…

Thanks for that, Eric. And that’s a nice segue into my next question on the financing side of things. I noticed in your recent 10-Q, just some changing and wording around the ability to extend your maturities to 2023, on much of your debt structure. And I know you talked to this briefly in your prepared remarks. Just want to get a little more color on that. And then additionally, what sort of options the team might look into as a means of simplifying some of that debt structure as you move forward and some of the longer term growth projects you are working on?

Sure. We have a what, 12-year plus relationship with Third Eye Capital that has had more than 25 amendments in the course of that relationship. And so yes, we have extended that relationship out over the past 12 months. But market conditions are such that we are now seeing a lot of appetite for environmental, social and governance in those ESG kinds of projects. And certainly transition investors formerly in oil and gas now looking to get in renewables have brought additional capital in the market. And climate change focus capital has become a focus on this market. So, we recently saw Renewable Energy Group complete a $550 million green bond that was at 5.8% interest rate and is traded well, post offering. And we also this week saw an OPA with the Sunnova solar company, complete a $400 million green bond, again at about 5.8% with solar side discount, but seems to be trading well. And so we are seeing institutional investors come into the debt side of the balance sheets of renewable energy companies. And this is a rather new development. It shows a confidence in the regulatory framework that these companies operate under. And I think our company is well positioned to be one of those green bond participants. As well as I have already mentioned, the United States Department of Ag, the Department of Energy and the California Pollution Control District, private activity bonds are three markets, we are already in, in addition to the green bond market. So, we are working diligently with what we consider to be some of the world’s leading investment banks in these markets. And certainly looking to simplify our capital structure with longer term financing, but lower our cash costs. So, we can invest our equity in growth. And I think that strategy is well positioned in the current marketplace to be successful in the third quarter and fourth quarter of this year.

Thank you very much, Eric. And thank you, Todd, and Andy as well.

Thanks.

Thank you.

We will take our next question from Todd Firestone with Evercore. Please go ahead.

Thanks for taking my question. I just had a couple of things, trying to think about what can be the next catalyst at Riverbank, what should be – if could provide a little color of what we should be looking for in the second half of ‘21 or into 2022?

There are offsetting agreements we announced in, I think it was late Q1 for renewable diesel as well as sustainable aviation fuels. We are currently in contract negotiations with multiple airlines and actually a consortium of airlines for sustainable aviation fuel. And we have three primary renewable diesel off-takers that we are currently basically selecting which relationship we are going to be moving forward with. But we have three very active bidders let’s call it in our renewable diesel business. So, those would be milestones, I would expect we would achieve in the third quarter, those off-take agreements are going to be matched with milestones in engineering. I gave some disclosure today about some of the progress we have made on the engineering and permitting side of the business. And that continues to move very steadily towards a closing of project financing, which I currently expect is going to be a Q1 event of next year. So, that’s a slight slip from Q4. But Q4 is definitely possible. We have just seen a re-ignition of this COVID kind of news. And it seems to slowdown the government and commercial lenders. So, I think it’s Q1 of next year is when project financing is currently expected to occur.

That’s great, thanks. Maybe just one on India, you gave quite a bit of color there today of how business can improve there and just the size of the market. How can we think about the timing of a real step change and revenue generation is it a 2022 or maybe a little color on what needs to happen to kind of transition that business to materially higher revenue?

There is two things that could be upside opportunities for India for us. Number one is simply the government despite the COVID delays. Moving forward with its national biofuels policy, which is 5% blend, about 1.25 billion gallons of biodiesel. And that’s a billion gallons more than the current capacity in the country. There is increasing focus on climate change. Certainly meet United Nations issuing its recent report claiming that we are already past the point of no return on climate change. There is just a lot of factors that would lead the Indian government to want to more aggressively enforce its current law. That’s really the number one factor for us, is that everybody is showing the right steps and the right direction, the slow steps have been slow. The second would be a fall in feedstock prices. We have sourcing, as I mentioned, of tallow. And we are going through a current process in which we potentially could be using that in production in a much more expanded basis. And so access to lower costs, the local feedstock is certainly part of our strategy that could position us well for rapid growth in India. So, either one or both of those coming together, could rapidly expand our India plan.

That’s great. I appreciate it. Thank you.

Sure. Thank you.

We will take our next question from Ed Woo with Ascendiant Capital. Please go ahead.

Yes. Thanks for taking my question. A quick housekeeping question, have you guys recognized any revenue from the biogas project yet?

We are currently showing that through our ethanol plant. We are using that biogas to run our ethanol plant. So, our ethanol carbon intensity is lower now that we get our pathway approved. But it’s being monetized through ethanol revenues right now.

Great. And then my last question is, what do you view as the price of oil? And how will that impact you absent any changes in the renewable fuel standards? If that doesn’t change, how would the price of oil impact your ethanol business?

I don’t think the price of oil is going to directly have a very materially impact on ethanol. What will definitely have the material impact would be a strong enforcement of the Renewable Fuel Standard, which is 15 billion gallons per year, plus a 500 million gallon court order issued by Federal Court in July of 2017. The Biden administration simply follows Federal law. We will have a 15.5 billion gallon market demand, which will be a very robust demand for the ethanol molecule. And I think that has the most direct impact on our margins in the current market.

Alright. Great. Well, thank you for answering my questions and good luck.

Thank you.

We will take our next question from Marco Rodriguez with Stonegate Capital. Please go ahead.

Hi guys, this is Dillon Wagner filling in for Marco today. Thank you for taking my question. I just wanted to see if you all can provide a quick update on your investment in Nevo Motors.

Sure. We have a strategic ownership in Nevo. And we have kept the specifics of the operation of Nevo off the radar screen, primarily because of the rapid expansion of our core business, including entering the carbon sequestration business, which occurred after our Nevo Motors activity. So, Nevo has a stated goal already of using biofuels as range extenders for electric trucks. And that strategy continues to get a lot of investor attention. And so we see future activity at Nevo that will be very beneficial and that as shareholders we own a little less than 20% of the company. But it’s utilizing Aemetis’ existing of the structure of biogas fueling and facilities at Riverbank and other things we have at Aemetis rather than our cash. And so our – our expectation is that over the next 12 months, we will see some more public disclosure of the Nevo product line and how that strategy is being implemented. But we have not highlighted that because we don’t want investors to be confused that Aemetis somehow is an electric truck company because we own some shareholdings in expanding biofuels range extender application of our existing core business.

Got it. And then one more question. There has just been a lot of discussion of climate change in the news and big pushes by governments and automakers to drive significant levels of electric vehicle sales. And how are you are all kind of looking at this trend to impact your business?

I think that investors event increasingly are looking at how do you make electricity as something that’s not carbon intensive. Over 50% of electricity in the United States is made from coal, or petroleum natural gas, which is very highly carbon intensive more than, frankly, gasoline. So, our biogas had negative 426 carbon intensity is certainly one of the most carbon negative electricity sources in the world and easily displaces petroleum natural gas as a better energy source for electric vehicles. And so as these initiatives are adopted to rapidly expand charging infrastructure and electric vehicle models increase in number. The carbon intensity of fuel I think is going to become a central issue. Running electric vehicles on coal isn’t necessarily a step forward when that coal carbon intensity is higher than that of gasoline or diesel. And so I think our biogas has an expanding market opportunity, feeding the electric vehicle revolution. And as our discussion we just had about Nevo Motors, I think that the electrical vehicle revolution as you start carrying heavier cargoes, ends up demanding more and more of batteries, and that the range and capacity of larger vehicles needs a range extender. That range extender is petrol and diesel, or petroleum gasoline, the carbon intensity of that electric vehicle ends up being impeded. So, you end up having an opportunity for our biofuels, such as ethanol, or biogas to be used in range extenders to basically make your less electric vehicle carrier heavy cargo and go farther than what the batteries can contain. So, we end up at Aemetis playing both the electricity role in electric vehicle, and also the biofuel range extender fuel when that electricity is run out and the batteries no longer can carry what was originally obtained from a wall socket essentially. And I think investors increasingly are going to start understanding it’s really about incorporate by carbon intensity, that even a gasoline or diesel vehicle can have electric drivetrain. But it’s really where do the electricity come from., what energy sources it come from, whether it was coal, or petroleum, natural gas or negative 426 carbon intensity Aemetis biogas is going to end up being the primary driver of these discussions as people understand that climate change is what really fighting here. It’s not really a question of the drivetrain to the vehicle.

Got it. I appreciate the color. Thanks.

Sure. Thank you, Dillon.

There are no further questions at this time. I would like to turn the floor back over to management for closing comments.

Alright, thank you. We appreciate the Aemetis shareholders and analysts and others who joined us today. Please review the Aemetis corporate presentation which is on the Aemetis website. And we look forward to talking with you about participating in the growth opportunities at Aemetis in the future.

Thank you for attending today’s Aemetis earnings conference call. Please visit the investor section at the Aemetis website where we will post a written version and an audio version of this Aemetis earnings review and business update. Terrene?

Thank you. This does conclude today’s teleconference. We thank you again for your participation. You may disconnect your lines at this time and have a great day.