Aemetis Inc., a leader in renewable natural gas and biofuels, is advancing decarbonization at its 65 million gallon per year ethanol facility in Keyes, California, through a $30 million energy efficiency upgrade. The project integrates a mechanical vapor recompression (MVR) system, supplied by Praj Industries, while NPL Construction Co., a subsidiary of Centuri Holdings Inc., handles project execution and implementation.
Proven Partnership Drives Innovation
The Aemetis Advanced Fuels Keyes facility, operational since 2011 using Praj’s ethanol technology, has consistently delivered reliable performance while supporting California’s Low-Carbon Fuel Standard (LCFS) and U.S. energy security.
“Praj has been a trusted technology partner to Aemetis for over a decade. Deploying this advanced low-carbon solution is the next step in lowering ethanol’s carbon intensity while boosting efficiency and profitability,” said Pramod Chaudhari, chairman of Praj Industries.
Eric McAfee, chairman and CEO of Aemetis, added, “The MVR project represents a high-return, high-impact upgrade. By leveraging Centuri’s EPC expertise and Praj’s proven technology, we expect to improve operating margins, strengthen cash flow, and capture Section 45Z tax credit benefits while advancing lower-carbon fuel production.”
Dylan Hradek, President of U.S. Gas at Centuri, stated, “Expanding our collaboration with Aemetis and Praj on this strategic energy efficiency project aligns perfectly with California’s clean energy goals. We are proud to deliver the infrastructure that enables a more sustainable future.”
Financial and Regulatory Support
The project has received approximately $19.7 million in grants and tax credits. Funding comes from the California Energy Commission, Pacific Gas & Electric, and Section 48C tax credits. Completion is scheduled for Q2 2026.
Expected Operational Benefits
Once operational, the MVR system is projected to:
- Reduce natural gas usage at the Keyes plant by approximately 80%
- Generate an estimated $32 million in incremental annual cash flow through energy savings and increased revenues
- Deliver a double-digit reduction in the carbon intensity of fuel ethanol, boosting LCFS credits
- Expand Section 45Z production tax credit generation
Driving Decarbonization and Margin Expansion
The MVR system strengthens Aemetis’ ethanol operations by combining energy efficiency, carbon reduction, and margin expansion. The upgrade positions the company to capture value from regulatory frameworks. It benefits from rising LCFS credit prices, Section 45Z incentives, and E15 gasoline adoption in California.
As reported by ethanolproducer.com, the investment complements Aemetis’ broader decarbonization strategy. This strategy includes Aemetis’ dairy renewable natural gas (RNG) program. It also incorporates recently approved CARB LCFS pathways, reinforcing the company’s commitment to sustainable, lower-carbon fuel production.
