Aemetis Signs Agreement with NPL Construction Co. for $30 Million Mechanical Vapor Recompression System at Keyes Ethanol Plant
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.
Aemetis (NASDAQ: AMTX) ha firmato un importante contratto EPC da 30 milioni di dollari con NPL Construction Co. per installare un sistema di Ricompressione Meccanica dei Vapori (MVR) presso il suo impianto di etanolo di Keyes, California. Il progetto, la cui conclusione è prevista per il Q2 2026, ha ottenuto 19,7 milioni di dollari in crediti e sovvenzioni fiscali.
Si stima che il sistema MVR ridurrà del 80% il consumo di gas naturale nello stabilimento da 65 milioni di galloni all'anno, generando un flusso di cassa annuo stimato di 32 milioni di dollari grazie al risparmio energetico, ai crediti LCFS e ai crediti fiscali Section 45Z. Questo aggiornamento è coerente con la strategia di Aemetis di espandere la produzione di Gas Naturale Rinnovabile da allevamenti, con 18 aziende zootecniche attualmente operative o in costruzione.
Aemetis (NASDAQ: AMTX) ha firmado un importante contrato EPC de 30 millones de dólares con NPL Construction Co. para instalar un sistema de Recompresión Mecánica de Vapor (MVR) en su planta de etanol de Keyes, California. El proyecto, con finalización prevista en el Q2 2026, cuenta con 19,7 millones de dólares en créditos fiscales y subvenciones.
Se prevé que el sistema MVR reduzca el consumo de gas natural en un 80% en la instalación de 65 millones de galones al año, generando un flujo de caja anual estimado de 32 millones de dólares mediante ahorros energéticos, créditos LCFS y créditos fiscales Section 45Z. Esta mejora se alinea con la estrategia de Aemetis de ampliar la producción de Gas Natural Renovable procedente de explotaciones lecheras, con 18 granjas actualmente operativas o en construcción.
Aemetis (NASDAQ: AMTX)는 NPL Construction Co.와 3,000만 달러 규모의 EPC 계약을 체결하고 캘리포니아 Keyes에 위치한 자사 에탄올 공장에 기계식 증기 재압축(MVR) 시스템을 설치합니다. 2026년 2분기 완료 예정인 이 프로젝트는 1,970만 달러의 세금 공제 및 보조금을 확보했습니다.
MVR 시스템은 연간 6,500만 갤런 설비에서 천연가스 사용량을 80%까지 줄일 것으로 예상되며, 에너지 절감, LCFS 크레딧 및 Section 45Z 세액공제를 통해 연간 약 3,200만 달러의 현금흐름을 창출할 것으로 추정됩니다. 이번 설비 개선은 현재 운영 중이거나 건설 중인 18개 낙농장에서의 가축 기반 재생 천연가스 생산 확대라는 Aemetis의 전략과도 부합합니다.
Aemetis (NASDAQ: AMTX) a signé un important contrat EPC de 30 millions de dollars avec NPL Construction Co. pour installer un système de recompression mécanique de vapeur (MVR) sur son site d'éthanol de Keyes, en Californie. Le projet, dont l'achèvement est prévu au T2 2026, a obtenu 19,7 millions de dollars de crédits et subventions fiscales.
Le système MVR devrait réduire de 80% la consommation de gaz naturel de l'installation de 65 millions de gallons par an, générant un flux de trésorerie annuel estimé à 32 millions de dollars grâce aux économies d'énergie, aux crédits LCFS et aux crédits d'impôt Section 45Z. Cette amélioration s'inscrit dans la stratégie d'Aemetis visant à développer la production de gaz naturel renouvelable à partir d'élevages laitiers, avec 18 exploitations actuellement en service ou en construction.
Aemetis (NASDAQ: AMTX) hat einen bedeutenden EPC-Vertrag über 30 Millionen US-Dollar mit NPL Construction Co. unterzeichnet, um ein Mechanisches Dampfwiederverdichtungssystem (MVR) in seiner Ethanol-Anlage in Keyes, Kalifornien, zu installieren. Das Projekt, das bis Q2 2026 abgeschlossen sein soll, hat 19,7 Millionen US-Dollar an Steuervergünstigungen und Zuschüssen gesichert.
Das MVR-System soll den Erdgasverbrauch in der Anlage mit einer Kapazität von 65 Millionen Gallonen pro Jahr um 80% senken und durch Energieeinsparungen, LCFS-Gutschriften sowie Section-45Z-Steuergutschriften einen geschätzten jährlichen Cashflow von 32 Millionen US-Dollar generieren. Dieses Upgrade passt zur Strategie von Aemetis, die Produktion von erneuerbarem Biomethan aus Milchviehbetrieben auszubauen; derzeit sind 18 Höfe in Betrieb oder im Bau.
- 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
- Significant capital expenditure of $30 million required
- Project completion not expected until Q2 2026, delaying benefits
Insights
Aemetis' $30M MVR system could generate $32M annual cash flow while reducing natural gas usage by 80%, with limited equity dilution.
Aemetis has secured a significant operational upgrade through an $30 million Engineering, Procurement, and Construction (EPC) contract with NPL Construction to install a Mechanical Vapor Recompression (MVR) system at its Keyes ethanol plant. The financial structure is particularly noteworthy – approximately $19.7 million (or 66%) of the project cost is covered by tax credits and grants from federal and state sources, substantially reducing the company's capital requirements.
The economics of this project are compelling. Once operational in Q2 2026, the MVR system is projected to generate an estimated $32 million in incremental annual cash flow through three revenue streams: direct energy savings, increased Low Carbon Fuel Standard (LCFS) credits from carbon intensity reduction, and Section 45Z production tax credits. With the total project cost at $30M, this suggests a potential first-year return exceeding 100% on the gross investment.
The 80% reduction in natural gas usage represents a significant operational cost advantage in California's high-energy-cost environment. This efficiency gain directly strengthens operating margins while simultaneously increasing the value of Aemetis' ethanol through improved carbon intensity scores under California's LCFS program. The timing aligns perfectly with rising LCFS credit prices and the expected adoption of E15 (15% ethanol blend) in California, which could expand the company's addressable market.
This investment complements Aemetis' diversification into Dairy Renewable Natural Gas with 18 dairies currently operating or under construction. The minimal equity dilution approach signals management's focus on shareholder value while executing its emissions reduction strategy.
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
The project has received approximately
Once operational, the MVR system is projected to reduce natural gas usage at the Keyes plant by approximately
“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 (
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.
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Company Investor Relations
Media Contact:
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(408) 213-0940
investors@aemetis.com
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Contact:
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FAQ
How much will the Aemetis (AMTX) MVR system cost and what funding has been secured?
What are the expected financial benefits of AMTX's MVR system installation?
When will Aemetis complete the MVR system installation at the Keyes plant?
How will the MVR system impact Aemetis' natural gas consumption?
What is the current production capacity of Aemetis' Keyes ethanol facility?
