Aemetis Inc. (NASDAQ: AMTX) is taking a significant step forward in its decarbonization efforts with a $30 million energy efficiency upgrade at its 65 million gallon-per-year ethanol plant in Keyes, California. The project, centered around the integration of a Mechanical Vapor Recompression (MVR) system, is designed to reduce the plant’s carbon footprint while improving operational efficiency and cash flow.

The MVR system, a key technology for energy optimization, is being supplied by Praj Industries (NSE: PRAJIND, BSE: 522205), a trusted partner in ethanol and renewable fuel technology. The execution and construction of the project are being managed by NPL Construction Co., a subsidiary of Centuri Holdings, Inc. (NYSE: CTRI), ensuring experienced oversight from design to commissioning.

Since its launch in 2011, the Aemetis Advanced Fuels Keyes facility has relied on Praj’s ethanol technology to provide reliable, high-performance ethanol production. The plant has consistently supported California’s Low Carbon Fuel Standard (LCFS) and strengthened U.S. energy security, making it a cornerstone in regional renewable energy infrastructure.

🔹 STORY HIGHLIGHTS

• Investment: $30 million energy efficiency upgrade at Keyes ethanol plant

• Technology Partner: Praj Industries supplying advanced low-carbon MVR system

• Implementation: Managed by Centuri Holdings’ NPL Construction Co.

• Funding Support: $19.7 million from California Energy Commission, Pacific Gas & Electric, and IRA Section 45Z tax credits

• Expected Completion: Q2 2026

• Projected Impact:

  • 80% reduction in natural gas consumption

  • $32 million in annual energy savings

  • Significant reduction in carbon intensity, increasing LCFS credits

  • Expanded eligibility for Section 45Z production tax credits

---

Once fully operational, the MVR system is projected to reduce natural gas use by roughly 80% and generate around $32 million in incremental annual cash flow from energy savings. Additionally, the system will reduce the carbon intensity of ethanol, allowing the plant to increase LCFS credit generation and benefit from transferable Section 45Z production tax credits.

The project is a central part of Aemetis’ broader decarbonization strategy, complementing its Dairy Renewable Natural Gas (RNG) program and recently approved CARB LCFS pathways.

Dr. Pramod Chaudhari, Chairman of Praj Industries, commented on the project:

“Praj has been a trusted technology partner to Aemetis for more than a decade at the Keyes facility. This deployment of our advanced low-carbon solution represents the next step in lowering ethanol’s carbon intensity while driving greater efficiency and profitability.”

He added:

“Working together with Aemetis and Centuri, we are enabling meaningful progress in the U.S. energy transition. Projects like this are critical for advancing sustainable ethanol production while improving financial outcomes.”

Eric McAfee, Chairman and CEO of Aemetis, emphasized the strategic value of the upgrade:

“The MVR project is a high-return, high-impact enhancement to our California ethanol plant. By leveraging Centuri’s EPC expertise and Praj’s proven technology, we expect to materially improve operating margins, strengthen cash flow, and capture the benefits of Section 45Z tax credits.”

He further noted:

“Our commitment to delivering lower-carbon renewable fuels is reinforced with this project, aligning operational improvements with environmental impact reductions.”

Dylan Hradek, President of U.S. Gas at Centuri, shared:

“We are proud to expand our collaboration with Aemetis and Praj on this strategic energy efficiency project. Centuri’s construction expertise and commitment to sustainability align perfectly with California’s clean energy goals.”

The integration of the MVR system is expected to deliver a combination of energy efficiency, carbon reduction, and margin expansion, while allowing Aemetis to capitalize on favorable regulatory frameworks. Rising LCFS credit prices, Section 45Z incentives, and the growing adoption of E15 gasoline blends in California further enhance the financial and environmental benefits of this upgrade.

With over 30 years of presence in the Americas, Praj Industries continues to be a leading partner for companies seeking low-carbon, high-efficiency solutions in renewable fuels and ethanol production. The Keyes plant upgrade demonstrates the growing emphasis on sustainable energy transitions in the U.S. while delivering tangible economic benefits.

Appreciating your time:

We appreciate you taking the time to read our most recent article! We appreciate your opinions and would be delighted to hear them. We value your opinions as we work hard to make improvements and deliver material that you find interesting.

Post a Comment:

In the space provided for comments below, please share your ideas, opinions, and suggestions. We can better understand your interests thanks to your input, which also guarantees that the material we offer will appeal to you. Get in Direct Contact with Us: Please use our “Contact Us” form if you would like to speak with us or if you have any special questions. We are open to questions, collaborations, and, of course, criticism. To fill out our contact form, click this link.

Stay Connected:

Don’t miss out on future updates and articles.