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.

News Market Reaction

-3.64%

1 alert

-3.64% News Effect

-$4M Valuation Impact

$108M Market Cap

1K Volume

On the day this news was published, AMTX declined 3.64%, reflecting a moderate negative market reaction. This price movement removed approximately $4M from the company's valuation, bringing the market cap to $108M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Expected cash flow uplift: $32 million per year Plant capacity: 65 million gallons per year Grants and tax credits: $19.7 million +5 more

8 metrics

Expected cash flow uplift $32 million per year Increase in cash flow from operations at Keyes plant starting mid-2026

Plant capacity 65 million gallons per year Keyes, California ethanol plant nameplate capacity

Grants and tax credits $19.7 million Support from California Energy Commission, PG&E, and IRS Section 48C

Project completion target Q2 2026 Scheduled completion of MVR project before mid-2026 operations

Natural gas reduction Approximately 80% Projected reduction in natural gas usage at Keyes plant

Animal feed output Two million pounds per day Feed supplied from Keyes plant to dairies in California Central Valley

Dairies supplied Approximately 80 dairies Number of dairies receiving animal feed from the plant

CO2 captured 150,000 tons per year Carbon dioxide captured and reused as beverage-grade CO2

Market Reality Check

Price: $1.49 Vol: Volume 770,887 is close t...

normal vol

$1.49 Last Close

Volume Volume 770,887 is close to the 814,376 20-day average (relative volume 0.95x). normal

Technical Shares at $1.56 are trading below the $2.14 200-day moving average and 57.38% under the 52-week high.

Peers on Argus

AMTX was down 0.66% while key peers like FSI, FF, ALTO, and CMT showed gains bet...

AMTX was down 0.66% while key peers like FSI, FF, ALTO, and CMT showed gains between about 2%–6%, and FEAM declined 3.17%, pointing to a stock-specific setup rather than a unified sector move.

Historical Context

5 past events · Latest: Dec 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 02	MVR permits update	Positive	-3.6%	Air permits granted for MVR project expected to boost cash flow.
Nov 14	Research coverage	Positive	-1.5%	Update on Q3 revenue, RNG output, and MVR-driven cash flow outlook.
Nov 06	Q3 2025 earnings	Negative	-14.6%	Reported Q3 net loss and lower nine‑month revenues versus prior year.
Oct 31	Earnings call notice	Neutral	-0.5%	Announcement of upcoming Q3 2025 results conference call.
Oct 07	MVR investment plan	Positive	+2.0%	Plan to install Praj MVR system with grants and cash flow uplift.

Pattern Detected

Recent news, including positive project and coverage updates, has often been met with negative price reactions, while clearly negative earnings news also saw selling pressure.

Recent Company History

Over the last few months, Aemetis highlighted multiple developments around its California ethanol plant and broader RNG strategy. On Oct 7, it detailed a $30 million Praj MVR upgrade backed by $19.7 million in grants, targeting $32 million of annual cash flow and ~80% gas reduction. Subsequent Q3 2025 results on Nov 6 showed revenue of $59.2 million but a net loss of $23.7 million. Today’s permit approval for the same MVR project advances that previously outlined decarbonization and cash-flow plan.

Market Pulse Summary

This announcement advances Aemetis’ decarbonization and efficiency strategy by confirming permits fo...

Analysis

This announcement advances Aemetis’ decarbonization and efficiency strategy by confirming permits for its MVR project at the 65 million-gallon Keyes ethanol plant. The project targets about $32 million in additional annual cash flow, ~80% lower natural gas use, and a double-digit carbon intensity reduction, supported by roughly $19.7 million in grants and tax credits. Investors may track construction progress toward the Q2 2026 completion and integration with the existing RNG and LCFS credit framework.

Key Terms

mechanical vapor recompression, low carbon fuel standard, section 48c investment tax credits, carbon intensity, +1 more

5 terms

mechanical vapor recompression technical

"Authority To Construct air permits ... for the mechanical vapor recompression (MVR) energy efficiency project"

Mechanical vapor recompression is a process that captures low-pressure steam from an industrial evaporator, compresses it with a mechanical compressor to raise its temperature, and then reuses that hotter steam as the heating source. Think of it like taking warm air from a room, boosting its heat with a small fan-driven compressor, and sending it back to warm the room again. Investors care because it cuts ongoing energy costs and greenhouse-gas emissions, improving operating margins and long-term competitiveness while usually requiring upfront capital investment.

low carbon fuel standard regulatory

"increased income from Low Carbon Fuel Standard credits, and an increase in transferable Section 45Z tax credits"

A low carbon fuel standard is a government rule that requires fuels to get cleaner over time by lowering the amount of greenhouse gas released per unit of energy. Think of it like a mileage test for fuels: producers who beat the target earn tradable credits, while those who fall short must buy credits or pay penalties. Investors care because the rule shifts costs and profits across fuel producers, creates new revenue from credits, and speeds demand for cleaner technologies and alternatives.

section 48c investment tax credits regulatory

"through Section 48C investment tax credits. Project completion is scheduled"

A Section 48C investment tax credit is a U.S. federal tax incentive that gives a dollar-for-dollar reduction in taxes for qualifying investments in manufacturing or equipment tied to clean energy and advanced energy projects. Think of it as a government-backed rebate on part of the cost to build or upgrade facilities for green technologies; for investors it directly lowers tax bills, improves project returns, and can influence which projects get funded because eligibility, certification and allotment rules determine who can claim the credit.

carbon intensity technical

"reduce the carbon intensity of our ethanol, and capture the benefits of Section 45Z"

Carbon intensity measures how much greenhouse gas a company, product, or activity produces for each unit of output — for example per unit of product made, per megawatt-hour of electricity, or per dollar of revenue. Think of it like miles per gallon but for emissions: lower numbers mean less pollution for the same activity. Investors watch it because higher carbon intensity can signal increased regulatory costs, shifting customer demand, and higher risk of assets losing value as economies move toward cleaner energy.

renewable natural gas medical

"complementing its dairy Renewable Natural Gas (RNG) program, including seven CARB LCFS pathways"

Renewable natural gas is methane captured from organic waste—like landfills, farms, or wastewater—and cleaned to the same quality as conventional pipeline gas so it can be used for heating, electricity, or vehicle fuel. Investors care because it turns waste into a revenue-generating commodity, can qualify for carbon credits or government incentives, and can reduce a company's emissions profile, affecting long-term costs, regulatory risk, and market demand much like converting trash into sellable fuel.

AI-generated analysis. Not financial advice.

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.