Aemetis Receives Authority to Construct Air Permits for MVR Project at California Ethanol Plant

Rhea-AI Summary

Aemetis (NASDAQ: AMTX) received Authority To Construct air permits for a mechanical vapor recompression (MVR) project at its 65 million gallon per year Keyes, California ethanol plant.

The MVR is scheduled for completion in Q2 2026 with operations starting mid-2026 and is projected to increase cash flow from operations by $32 million per year from energy cost reductions, higher LCFS credit income, and increased transferable Section 45Z tax credits.

The project is expected to reduce natural gas use by ~80%, deliver a double-digit reduction in carbon intensity, and has received approximately $19.7 million in grants and tax credits from the California Energy Commission, PG&E, and the IRS Section 48C program.

Positive

• Expected cash flow +$32 million per year starting mid-2026
• Natural gas usage reduced by approximately 80% at Keyes
• Approximately $19.7 million in grants and tax credits received
• Double-digit reduction in ethanol carbon intensity projected
• MVR completion scheduled for Q2 2026

Negative

• None.

Insights

Energy & Biofuels Operations Analyst

Approved permits enable an MVR retrofit that should materially raise cash flow and lower carbon intensity once online in mid-2026.

Aemetis will install a mechanical vapor recompression system at its Keyes ethanol plant that the district has permitted to construct. The project carries $19.7 million of grants and tax-credit support and is projected to cut natural gas use by about 80%, which the company links directly to an estimated $32 million increase in annual cash flow from operations after completion in mid-2026.

The business mechanism is straightforward: large fuel and energy inputs decline dramatically, LCFS credit generation rises due to lower carbon intensity, and transferable Section 45Z production tax credits increase in value, together improving operating margin. The disclosed risks and dependencies are completion on schedule and the realization of the stated LCFS and Section 45Z credit values; both items are explicitly stated as drivers in the announcement and should be confirmed as milestones pass.

Concrete items to watch are the stated project completion milestone in Q2 2026, verification of the 80% natural gas reduction in operational performance testing, and the realized annual cash-flow uplift of $32 million once commissioning finishes. Near-term monitorables also include any updates on LCFS credit generation and the treatment/transferability of Section 45Z credits; these will determine the magnitude and timing of the financial benefit.

Mechanical Vapor Recompression Project Expected to Increase Cash Flow from Operations by $32 Million Per Year Starting Mid-2026

CUPERTINO, Calif., Dec. 02, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company, announced today that the Authority To Construct air permits have been issued by the San Joaquin Valley Air Pollution Control District for the mechanical vapor recompression (MVR) energy efficiency project at the Aemetis 65 million gallon per year ethanol plant in Keyes, California.

The MVR project is expected to increase cash flow from operations at the Keyes ethanol plant by $32 million per year after the completion of construction in mid-2026 from energy cost reductions, increased income from Low Carbon Fuel Standard credits, and an increase in transferable Section 45Z tax credits.

“The MVR project represents a high-return, high-impact energy efficiency upgrade to our California ethanol facility,” said Eric McAfee, Chairman and CEO of Aemetis. “We expect to significantly improve operating margins, strengthen cash flow, reduce the carbon intensity of our ethanol, and capture the benefits of Section 45Z tax credits while advancing our commitment to delivering domestic renewable fuels that create high-paying jobs in rural areas.”

The MVR project has received approximately $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and the U.S. Internal Revenue Service through Section 48C investment 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 increase of $32 million of annual cash flow from operations
• Deliver a double-digit reduction in the carbon intensity of the plant’s fuel ethanol, increasing the number of California LCFS credits generated
• Increase the value of transferable Section 45Z production tax credits

The MVR system strengthens Aemetis’ ethanol operations by combining energy efficiency, carbon intensity reduction, and increased cash from operations while capturing value from favorable regulatory frameworks, including rising LCFS credit prices, Section 45Z tax credits, and the adoption of E15 gasoline blends in California.

The Aemetis Advanced Fuels Keyes ethanol plant has been operating since 2011, supplying about two million pounds per day of animal feed to approximately 80 dairies in the California Central Valley to feed more than 100,000 dairy cows. Approximately 150,000 tons per year of carbon dioxide from the Keyes ethanol plant is captured and reused as beverage-grade CO2 for food production and other uses.

This investment marks a significant step forward in Aemetis’ decarbonization strategy, complementing its dairy Renewable Natural Gas (RNG) program, including seven CARB LCFS pathways for dairy digesters that were approved in June 2025. With a total of fifteen dairies providing waste to twelve operating biogas digesters, Aemetis recently completed a multi-dairy digester with a capacity to process waste from more than 10,000 cows.

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 that produces 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.

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

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

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.

FAQ

What did Aemetis (AMTX) receive for the Keyes MVR project on December 2, 2025?

Aemetis received Authority To Construct air permits from the San Joaquin Valley Air Pollution Control District.

How much annual cash flow will the AMTX Keyes MVR project add and when?

The MVR project is projected to add $32 million of cash flow per year starting mid-2026.

What energy savings does the AMTX MVR system deliver at the Keyes ethanol plant?

The MVR system is expected to reduce natural gas usage by approximately 80%.

How much funding did Aemetis secure for the Keyes MVR project (AMTX)?

The project received about $19.7 million in grants and tax credits from CEC, PG&E, and IRS Section 48C.

What environmental impact will the AMTX MVR upgrade have on ethanol carbon intensity?

The upgrade is projected to deliver a double-digit reduction in the plant's carbon intensity and increase LCFS credits.

When will the Keyes MVR project be completed and operational for AMTX investors?

Project completion is scheduled for Q2 2026 with operations and cash-flow benefits starting mid-2026.