Aemetis Signs Agreement with NPL Construction Co. for $30 Million Mechanical Vapor Recompression System at Keyes Ethanol Plant

Rhea-AI Summary

Aemetis (NASDAQ: AMTX) has signed a significant $30 million EPC contract with NPL Construction Co. to install a Mechanical Vapor Recompression (MVR) system at its Keyes ethanol facility in California. The project, scheduled for completion in Q2 2026, has secured $19.7 million in tax credits and grants.

The MVR system is projected to reduce natural gas usage by 80% at the 65-million-gallon-per-year facility, generating an estimated $32 million in annual cash flow through energy savings, LCFS credits, and Section 45Z tax credits. This upgrade aligns with Aemetis' strategy to expand Dairy Renewable Natural Gas production, with 18 dairies currently operating or under construction.

Positive

• Secured $19.7 million in tax credits and grants, reducing capital requirements
• Expected $32 million annual incremental cash flow from energy savings and credits
• 80% reduction in natural gas usage, improving operating margins
• Minimal equity dilution while implementing high-return upgrade
• Strategic alignment with regulatory tailwinds including LCFS credits and E15 adoption

Negative

• Significant capital expenditure of $30 million required
• Project completion not expected until Q2 2026, delaying benefits

CUPERTINO, Calif., Sept. 09, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on low and negative carbon intensity products, today announced that its Keyes plant subsidiary has signed an engineering, procurement, and construction (EPC) contract with NPL Construction Co., a subsidiary of Centuri Holdings, Inc. (NYSE: CTRI), a $2.6 billion revenue infrastructure services contractor, to install a Mechanical Vapor Recompression (MVR) system at the company’s 65 million gallon per year ethanol production facility in Keyes, California, with an estimated total project cost of $30 million.

The project has received approximately $19.7 million in tax credits and grants from the Internal Revenue Service (upon recommendation by the U.S. Department of Energy), California Energy Commission, and Pacific Gas & Electric. The MVR project is scheduled to complete construction in Q2 2026.

Once operational, the MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80%, generating an estimated $32 million of incremental annual cash flow from energy savings, increasing LCFS credits from a double-digit reduction in the carbon intensity of ethanol produced, and increasing transferrable Section 45Z production tax credits.

“NPL’s construction of the MVR project is designed to deliver a high-return, high-impact upgrade to our California ethanol facility with minimal equity dilution,” said Eric McAfee, Chairman and CEO of Aemetis. “The MVR system is expected to materially improve operating margins, strengthen cash flow, and advance our commitment to reducing emissions from the renewable fuel we produce.”

“We are pleased to expand our partnership with Aemetis in pursuit of a shared public-private commitment to advancing California’s clean energy goals through the production of renewable fuels,” said Centuri US Gas President Dylan Hradek.  “We have the people and capabilities to provide the energy infrastructure solutions required to build a more sustainable future and look forward to our role in this project.”

The MVR project builds on the company’s multi-year strategy to expand Dairy Renewable Natural Gas production, with 18 dairies operating or under construction and the recent approval of seven CARB LCFS pathways. The MVR system strengthens California Ethanol operations through energy efficiency and margin expansion while capturing value from powerful regulatory tailwinds including rising LCFS credit prices, Section 45Z production tax credit monetization, and expected E15 (15% ethanol blend) adoption in California.

About Aemetis

Aemetis is a renewable natural gas and renewable fuels company focused on the operation, acquisition, development, and commercialization of innovative technologies to lower fuel costs and reduce emissions. Founded in 2006, Aemetis owns and operates production facilities in California and India. For additional information about Aemetis, please visit www.aemetis.com.

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

How much will the Aemetis (AMTX) MVR system cost and what funding has been secured?

The MVR system will cost $30 million, with $19.7 million already secured through tax credits and grants from the IRS, California Energy Commission, and Pacific Gas & Electric.

What are the expected financial benefits of AMTX's MVR system installation?

The MVR system is expected to generate $32 million in annual cash flow through energy savings, increased LCFS credits from reduced carbon intensity, and Section 45Z production tax credits.

When will Aemetis complete the MVR system installation at the Keyes plant?

The MVR system installation is scheduled for completion in Q2 2026 at the Keyes ethanol production facility in California.

How will the MVR system impact Aemetis' natural gas consumption?

The MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80%, significantly improving operating margins and reducing emissions.

What is the current production capacity of Aemetis' Keyes ethanol facility?

The Keyes ethanol production facility has a capacity of 65 million gallons per year of ethanol production.