Aemetis Receives Key Equipment for Mechanical Vapor Recompression at Ethanol Plant

Aemetis (NASDAQ: AMTX) received key equipment, including high‑efficiency turbofans, for its $40 million mechanical vapor recompression (MVR) system at the Keyes, California ethanol plant.

Rhea-AI Summary

Aemetis (NASDAQ: AMTX) received key equipment, including high‑efficiency turbofans, for its $40 million mechanical vapor recompression (MVR) system at the Keyes, California ethanol plant.

The MVR project aims to cut natural gas use by about 80%, raise annual operating cash flow by $32 million, lower carbon intensity, increase California LCFS credits, and boost Section 45Z tax credit value. The system, using six 3,500-horsepower electric turbofans, is under construction and expected to be operational by end of 2026. The project has obtained about $19.7 million in grants and tax credits.

Positive

• MVR project investment of $40 million in energy-efficient technology
• Expected 80% reduction in natural gas usage at the Keyes ethanol plant
• Projected increase of $32 million in annual cash flow from operations
• Lower carbon intensity expected to increase California LCFS credits generated
• Potential increase in value of transferable Section 45Z tax credits
• Approximately $19.7 million in grants and tax credits secured for the project

Negative

• MVR system requires a significant capital outlay of $40 million
• Operational benefits are expected only after system completion by end of 2026

Argus Jun 17 session

-1.03% close to close Open Argus

Details

News Market Reaction – AMTX

In the Jun 17 session, AMTX declined 1.03%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement centers on Aemetis receiving key equipment for its $40 million MVR system at the K...

Analysis

This announcement centers on Aemetis receiving key equipment for its $40 million MVR system at the Keyes plant, targeting roughly 80% lower natural gas use and an expected $32 million increase in annual operating cash flow. Supported by about $19.7 million in grants and tax credits, the project complements earlier low‑carbon and financing initiatives. Investors may watch execution toward the end‑of‑2026 operational target and how these efficiencies affect cash generation at a 65 million-gallon‑per‑year facility.

Key Figures

MVR system cost: $40 million Cash flow increase: $32 million Grants and tax credits: $19.7 million +5 more

MVR system cost

$40 million

Mechanical vapor recompression system at Keyes ethanol plant

Cash flow increase

$32 million

Expected annual increase in cash flow from operations once MVR is operational

Grants and tax credits

$19.7 million

Project support from CEC, PG&E, and IRS Section 48C credits

Plant capacity

65 million gallons per year

Annual ethanol production at Keyes plant

Animal feed output

2 million pounds per day

Feed produced for 80 dairies in California’s Central Valley

CO2 captured

More than 100,000 tons per year

CO2 captured for reuse as beverage-grade CO2

Electric turbofans

Six 3,500-horsepower units

MVR installation components to generate steam without natural gas

Natural gas reduction

Approximately 80%

Expected reduction in natural gas usage at Keyes plant

Historical Context

5 past events · Latest: May 21

5 events

1. May 21

   Financing support

   24h Move

   +4.7%

   State authority backed up to $1.1B potential tax‑exempt bond financing.

2. May 14

   Analyst update

   24h Move

   -0.9%

   Coverage cited 27% revenue growth and improved profitability metrics in 1Q26.

3. May 07

   Earnings report

   24h Move

   -3.7%

   Q1 2026 showed revenue growth and better gross profit but continued net loss.

4. May 01

   Earnings call setup

   24h Move

   +11.8%

   Announcement of Q1 2026 earnings call and webcast details for investors.

5. Mar 25

   Leadership award

   24h Move

   +11.3%

   CEO received Holmberg Award for Lifetime Achievement in the bioeconomy.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

mechanical vapor recompression, carbon intensity, low carbon fuel standard, section 45z clean fuel production tax credits, +2 more

6 terms

mechanical vapor recompression technical

"its $40 million mechanical vapor recompression (MVR) system at its ethanol plant"

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.

carbon intensity technical

"Decrease the carbon intensity of the plant’s fuel ethanol"

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.

low carbon fuel standard regulatory

"number of California Low Carbon Fuel Standard credits generated"

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 45z clean fuel production tax credits financial

"value of transferable Section 45Z Clean Fuel Production tax credits"

A Section 45Z clean fuel production tax credit is a U.S. federal tax incentive that pays producers based on the amount and carbon intensity of eligible low‑carbon fuels they generate. Think of it as a per‑unit subsidy that raises a producer’s cash receipts for making cleaner fuels, improving project economics and lowering operational risk. Investors watch it because it can materially increase revenue, shorten payback times, and change the valuation and attractiveness of fuel and energy projects.

section 48c investment tax credits financial

"via Section 48C investment tax credits."

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.

turbofans technical

"include six 3,500-horsepower electric turbofans that heat alcohol vapors"

Turbofans are a common type of jet engine where a large front fan pushes a mix of air around and through a gas turbine to create thrust — think of a powerful household fan bolted to a small engine. They matter to investors because their fuel use, reliability, noise and emissions directly affect airline operating costs, aircraft resale value and compliance with regulations, so changes in turbofan technology, production or orders can influence aerospace and airline company profits and stock values.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CUPERTINO, Calif., June 17, 2026 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a diversified renewable natural gas and biofuels company, announced today that it has received key equipment for its $40 million mechanical vapor recompression (MVR) system at its ethanol plant in Keyes, California, including the high efficiency turbofans and other components.

Once operational, the MVR system is expected to:

• Reduce natural gas usage at the Keyes plant by approximately 80%
• Increase annual cash flow from operations by $32 million
• Decrease the carbon intensity of the plant’s fuel ethanol, increasing the number of California Low Carbon Fuel Standard credits generated
• Increase the value of transferable Section 45Z Clean Fuel Production tax credits

“MVR technology is being adopted in the ethanol industry for energy savings and economic incentives associated with lower emission rates, and Aemetis is among the first producers in North America to install the system,” said Eric McAfee, Chairman and CEO of Aemetis. “As we invest in producing lower-cost fuels, we are expanding operational efficiencies that reduce costs and increase revenues.”

The Aemetis ethanol plant produces 65 million gallons per year and has been operating since 2011. In addition to ethanol, it produces about 2 million pounds per day of animal feed for 80 dairies in California’s Central Valley to feed more than 100,000 dairy cows. More than 100,000 tons per year of carbon dioxide from the plant is captured for reuse as beverage-grade CO₂ for food production and other applications.

The MVR installation will include six 3,500-horsepower electric turbofans that heat alcohol vapors to generate steam without using natural gas. The MVR system is under construction and expected to be operational by the end of 2026. The 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 via Section 48C investment tax credits.

About Aemetis

Headquartered in Cupertino, California, Aemetis is a diversified renewable natural gas and biofuels company focused on the development and operation of innovative technologies that lower energy costs and reduce emissions. Founded in 2006, Aemetis is operating and 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. To utilize the byproducts from ethanol production, Aemetis is developing a sustainable aviation fuel plant and a CO2 sequestration project in California. For additional information about Aemetis, please visit www.aemetis.com.

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

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; statements related to the development, engineering, financing, construction and operation of the Aemetis biodiesel and other biofuel facilities; our ability to promote, develop, finance, and construct facilities to produce biodiesel, 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Aemetis (NASDAQ: AMTX) announce about the mechanical vapor recompression system?

Aemetis announced it received key equipment for its $40 million mechanical vapor recompression (MVR) system at the Keyes ethanol plant. According to Aemetis, the equipment includes high-efficiency turbofans and components needed to advance construction toward expected startup by the end of 2026.

How will the new MVR system affect Aemetis (AMTX) operating cash flow?

The MVR system is expected to increase Aemetis annual cash flow from operations by $32 million. According to Aemetis, this improvement stems from lower natural gas usage and related energy savings once the system is operating at the Keyes ethanol plant.

How much natural gas savings is Aemetis targeting with the MVR project at Keyes?

Aemetis expects the MVR system to reduce natural gas usage at the Keyes ethanol plant by about 80%. According to Aemetis, six 3,500-horsepower electric turbofans will heat alcohol vapors to generate steam without using natural gas.

When is the Aemetis (AMTX) MVR system expected to be operational?

The mechanical vapor recompression system is expected to be operational by the end of 2026. According to Aemetis, the system is currently under construction after receiving key equipment needed to complete installation at the Keyes, California ethanol facility.

What grants and tax credits has Aemetis secured for the $40 million MVR project?

The MVR project has received about $19.7 million in grants and tax credits. According to Aemetis, funding comes from the California Energy Commission, Pacific Gas & Electric, and Section 48C investment tax credits from the U.S. Internal Revenue Service.

How could the MVR system impact Aemetis LCFS and Section 45Z tax credits?

The MVR system is expected to lower the carbon intensity of Aemetis fuel ethanol, increasing California Low Carbon Fuel Standard credits. According to Aemetis, the project is also anticipated to increase the value of transferable Section 45Z Clean Fuel Production tax credits.