Aemetis Advances Decarbonization with $30M Energy Efficiency Upgrade at Keyes Ethanol Plant

Aemetis, a renewable natural gas and biofuels company, is moving ahead with decarbonization at its 65 million gallon per year ethanol plant in Keyes, California through a $30 million energy efficiency upgrade and an integration of a Mechanical Vapor Recompression (MVR) system. 

Praj Industries, an industrial biotech company, will supply the advanced low-carbon solution and equipment forming the key components of the system. NPL Construction, a subsidiary of Centuri Holdings, will execute and implement the project. 

The Aemetis Advanced Fuels Keyes facility utilizes Praj’s ethanol technology and has delivered reliable performance, thus contributing to California’s low-carbon fuel standard and U.S. energy security.

The MVR system not only strengthens Aemetis’ ethanol operations by combining energy efficiency, carbon reduction, and margin expansion but also captures value from favorable regulatory frameworks, including rising LCFS credit prices, Section 45Z incentives, and the adoption of E15 gasoline blends in California. The investment supports Aemetis’ decarbonization strategy, adding to its Dairy Renewable Natural Gas (RNG) program and recently approved CARB LCFS pathways.

The project has received approximately $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and Section 48C tax credits. The completion is slated for Q2 2026.

Once operational, the MVR system is projected to:

• Reduce natural gas usage at the Keyes plant by approximately 80 percent
• Generate an estimated $32 million 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 project represents a high-return, high-impact upgrade to our California ethanol facility,” said Eric McAfee, Chairman and CEO of Aemetis. “By working with Centuri’s EPC team and Praj’s proven technology, we expect to materially improve operating margins, strengthen cash flow, and capture the benefits of Section 45Z tax credits while advancing our commitment to delivering lower-carbon renewable fuels.”