Aemetis announces $30M energy efficiency upgrade at Keyes plant

Aemetis (AMTX) is advancing decarbonization at its 65 million gallon per year ethanol plant in Keyes, California with a $30M energy efficiency upgrade with integration of a Mechanical Vapor Recompression (MVR) system. Praj Industries is supplying the advanced low-carbon solution and equipment that form the key components of this system. Project execution and implementation are being carried out by NPL Construction Co., a subsidiary of Centuri (CTRI) Holdings (CTR). The Aemetis Advanced Fuels Keyes facility has been operating since 2011, utilizing Praj’s ethanol technology, and has consistently delivered reliable performance while contributing to California’s low-carbon fuel standard and U.S. energy security. The project has received approximately $19.7M in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and Section 48C tax credits. Project completion is scheduled for Q2 2026 and, once operational, the MVR system is projected to: Reduce natural gas usage at the Keyes plant by approximately 80%; Generate an estimated $32M of incremental annual cash flow from energy savings and increased revenues; Deliver a double-digit reduction in the carbon intensity of the plant’s fuel ethanol, increasing LCFS credits; Expand the generation of transferable Section 45Z production tax credits. The MVR system strengthens Aemetis’ ethanol operations by combining energy efficiency, carbon reduction, and margin expansion, while capturing value from favorable regulatory frameworks, including rising LCFS credit prices, Section 45Z incentives, and the adoption of E15 gasoline blends in California.