Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Do you think the recent LCFS update will move prices to a range where projects generate a good return? A: Yes, the updated LCFS is expected to fund projects effectively. Analysts predict that by 2027, the credit bank will be zero, leading to a maximum price of approximately $220. The strong commitment from California suggests that major oil companies will need to secure credits sooner to avoid higher future prices.
Q: What are your thoughts on the Cummins 15L engine and its impact on RNG adoption? A: The Cummins X15 engine performs comparably to diesel engines with lower emissions and fuel costs. It is expected to meet future emission thresholds, making it a viable long-term solution. The expansion of RNG production is necessary to fuel fleets with carbon-negative fuel.
Q: What are the perceived risks to future tax credits with the new administration in 2025? A: The timing of the 45Z production tax credit guidance is uncertain. We are working with the IRS to expedite the process. If not resolved by year-end, it may be addressed in the second quarter of next year with the new administration.
Q: How will potential tariffs and feedstock price increases impact Riverbank's economics? A: Riverbank plans to use largely domestic feedstocks, minimizing reliance on imports. While tariffs could impact corn prices, our domestic sourcing strategy should mitigate significant disruptions.
Q: What is the path for RNG capacity beyond 2026? A: We aim to exceed 550,000 MMBTUs in 2025 and reach 1 million in 2026. We have agreements with 48 dairies and are working to accelerate construction to achieve these targets. Further expansion to 1.65 million MMBTUs is planned by 2027.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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