08:46 AM EDT, 10/03/2025 (MT Newswires) -- Aemetis ( AMTX ) said Friday that the California government's approval for 15% ethanol blending in gasoline will support the company's in-state production and lower the cost of transportation fuels in the state.

California Governor Gavin Newsom signed Assembly Bill 30, expanding the potential California market for ethanol by 50%, the company said.

Aemetis ( AMTX ), citing a study by UC Berkeley and the US Naval Academy, said that a 15% ethanol blend could decrease gasoline prices at the pump by $2.7 billion per year, lowering rates for consumers by about 20 cents per gallon.

Aemetis ( AMTX ) owns and operates a 65 million-gallon-per-year ethanol facility in California's Central Valley near Modesto, it said.

Additionally, the company said that it will invest $30 million in a mechanical vapor recompression system at its ethanol plant, which is expected to reduce natural gas usage by 80%. Once implemented, the ethanol plant will likely improve cash flow from operations by $32 million per year, it added.

Shares of the company were up 2.2% in recent Friday premarket activity.