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

Core Viewpoint - Aemetis, Inc. has signed a $30 million EPC contract with NPL Construction Co. to install a Mechanical Vapor Recompression system at its Keyes ethanol plant, which is expected to significantly enhance energy efficiency and financial performance [1][2][3]. Financial Summary - For the three months ended May 31, 2024, Aemetis reported a net income of $330.837 million, a substantial increase from $53.406 million in the same period of 2023 [1]. - Cash flows from operating activities decreased to $327.964 million from $828.092 million year-over-year [1]. - The company experienced a net cash outflow from investing activities of $60.743 million, compared to a net inflow of $111.646 million in the previous year [1]. Project Details - The MVR project has secured approximately $19.7 million in tax credits and grants from various governmental bodies, including the IRS and California Energy Commission [2]. - The MVR system is projected to reduce natural gas usage at the Keyes plant by about 80%, leading to an estimated $32 million in annual cash flow from energy savings [3]. Strategic Impact - The MVR project is part of Aemetis' strategy to enhance operational margins and cash flow while supporting California's clean energy goals [4][5]. - The project aligns with regulatory trends, including rising LCFS credit prices and the anticipated adoption of E15 ethanol blends in California [5].