Aemetis California Ethanol Plant Drives Substantial Carbon Intensity Reduction using Praj Low-Carbon MVR System

Rhea-AI Summary

Aemetis (NASDAQ: AMTX) is investing $30 million to install a Praj Mechanical Vapor Recompression (MVR) system at its Keyes, California ethanol plant, with project execution by Centuri subsidiary NPL Construction.

The upgrade, supported by approximately $19.7 million in grants and tax credits, is scheduled for completion in Q2 2026 and is projected to reduce natural gas use ~80%, generate an estimated $32 million of incremental annual cash flow, lower ethanol carbon intensity (increasing LCFS credits), and expand Section 45Z production tax credits.

Positive

• Natural gas use reduction of approximately 80%
• Incremental cash flow projected at $32 million annually
• $19.7 million in grants and tax credits awarded
• Project completion targeted for Q2 2026

Negative

• $30 million capital expenditure required for the upgrade
• Project value depends on LCFS and Section 45Z credit pricing

Insights

Energy transition analyst

Aemetis' Keyes MVR upgrade promises large fuel‑use cuts, material cashflow uplift and accelerated LCFS/45Z credit generation by Q2 2026.

The project pairs a $30 million energy‑efficiency upgrade at the Keyes ethanol plant with Praj Industries' MVR equipment and Centuri/NPL construction execution. The company reports roughly 80% reduction in natural gas use, receipt of ~$19.7 million in grants/tax credits, and a projected $32 million of incremental annual cash flow from energy savings and higher revenues.

Dependencies and risks include timely delivery and commissioning by Q2 2026, actual realized energy savings versus projections, and continued eligibility and valuation of LCFS, Section 45Z and Section 48C credits. Key near‑term items to watch are mechanical completion and start‑up by Q2 2026, verification of the stated 80% natural gas reduction in operation, and the recognition/timing of the stated $32 million incremental cash flow and grant/tax credit receipts.

Leading Industrial Biotechnology Company Delivers Key Equipment For Aemetis Project

CUPERTINO, Calif., Oct. 07, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company, announced today that it is advancing decarbonization at its 65 million gallon per year ethanol plant in Keyes, California with a $30 million energy efficiency upgrade with integration of a Mechanical Vapor Recompression (MVR) system. Praj Industries (NSE: PRAJIND) 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 Holdings, Inc. (NYSE: CTRI).

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.

“Praj has been a trusted technology partner to Aemetis for more than a decade at this facility. The deployment of this advanced low-carbon solution marks the next step in lowering the carbon intensity of ethanol while driving greater efficiency and profitability.” said Dr. Pramod Chaudhari, Chairman of Praj Industries. “Together with Aemetis and Centuri, we are enabling meaningful progress in the U.S. energy transition.”

“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.”

“We are proud to expand our collaboration with Aemetis and Praj on this strategic energy efficiency project.” said Dylan Hradek, President of U.S. Gas at Centuri. “Centuri’s construction expertise and commitment to sustainability align perfectly with California’s clean energy goals, and we look forward to delivering the infrastructure that enables a more sustainable future.”

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.

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 $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 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.

This investment marks a significant step forward in Aemetis’ decarbonization strategy, complementing its Dairy Renewable Natural Gas (RNG) program and recently approved CARB LCFS pathways.

About Aemetis

Headquartered in Cupertino, California, Aemetis is a renewable natural gas and biofuels company focused on the operation, acquisition, development, and commercialization of innovative technologies that lowers fuel costs and reduces emissions. Founded in 2006, Aemetis is operating and actively expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis owns and operates an 80 million gallon per year production facility on the East Coast of India producing high quality biodiesel and refined glycerin. Aemetis is developing a carbon sequestration well project and a renewable diesel fuel and SAF biorefinery in Riverbank, California. For additional information about Aemetis, please visit www.aemetis.com.

About Praj Industries Limited

Praj, India's most accomplished industrial biotech company, is driven by innovation, integration, and delivery capabilities. Over the past four decades, Praj has focused on environment, energy, and agri‐process industry, with more than 1000 customer references spanning more than 100 countries across six continents. Bio‐Mobility® and Bio‐Prism® are the mainstays of Praj's contribution to the global Bioeconomy. The Bio‐Mobility® platform offers technology solutions globally to produce the renewable transportation fuel, thus ensuring sustainable decarbonization through a circular bioeconomy. The Company's Bio‐Prism® portfolio comprises technologies to produce renewable chemicals and materials, promises sustainability while reimagining nature. Praj Matrix, the state‐of‐the‐art R&D facility, forms the backbone for the company's endeavors towards a clean energy‐based Bioeconomy. Praj's diverse portfolio comprises Bio‐energy solutions, Critical process equipment & skids, Breweries, Zero liquid discharge systems and High purity water systems. Led by accomplished and caring leadership, Praj is a socially responsible corporate citizen. Praj is listed on the Bombay and National Stock Exchanges of India.

About Centuri

Centuri Holdings, Inc. is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada.

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements include, without limitation, projections of financial results in 2025 and future years; statements relating to the development, engineering, financing, construction and operation of the Aemetis ethanol, biogas, SAF and renewable diesel, biodiesel and carbon sequestration facilities; our ability to promote, develop, finance, and construct facilities to produce biogas, renewable fuels, and biochemicals; and statements about future market prices and results of government actions. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Reports on Form 10-K, and in our other filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

Company Investor Relations
Media Contact:
Todd Waltz
(408) 213-0940
investors@aemetis.com

External Investor Relations
Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com

FAQ

What is Aemetis (AMTX) installing at the Keyes ethanol plant and when will it finish?

Aemetis is installing a Praj MVR system at Keyes, with project completion targeted for Q2 2026.

How much will the Aemetis MVR upgrade cost and what funding supports it?

The upgrade is estimated at $30 million and has received about $19.7 million in grants and tax credits.

How much natural gas reduction does the AMTX MVR project expect?

The MVR system is projected to reduce natural gas usage by approximately 80% at the Keyes plant.

What cash-flow impact does the Aemetis MVR project forecast for AMTX?

Aemetis projects approximately $32 million of incremental annual cash flow from energy savings and increased revenues.

How will the MVR system affect Aemetis' carbon intensity and credits for AMTX?

The upgrade is expected to deliver a double-digit reduction in ethanol carbon intensity, increasing LCFS credits and expanding Section 45Z credits.

Who are the suppliers and contractors for Aemetis' Keyes MVR project (AMTX)?

Praj supplies the MVR technology and equipment; NPL Construction, a Centuri subsidiary, is handling project execution.