Aemetis Receives Authority to Construct Air Permits for MVR Project at California Ethanol Plant

Core Viewpoint - Aemetis, Inc. is set to enhance its operational cash flow by $32 million annually starting mid-2026 through the implementation of a mechanical vapor recompression (MVR) project at its Keyes ethanol plant, following the issuance of necessary air permits [1][2]. Financial Impact - The MVR project is projected to generate an annual cash flow increase of $32 million post-construction, attributed to energy cost savings, enhanced income from Low Carbon Fuel Standard (LCFS) credits, and increased transferable Section 45Z tax credits [2][8]. - The project has received approximately $19.7 million in grants and tax credits from various entities, including the California Energy Commission and the U.S. Internal Revenue Service [3]. Operational Enhancements - The MVR system aims to reduce natural gas usage at the Keyes plant by approximately 80%, improve operating margins, and lower the carbon intensity of the ethanol produced [8]. - The completion of the MVR project is scheduled for Q2 2026, which will strengthen Aemetis' ethanol operations by integrating energy efficiency and carbon intensity reduction [4]. Strategic Alignment - This investment aligns with Aemetis' decarbonization strategy and complements its dairy Renewable Natural Gas (RNG) program, which includes multiple approved pathways for dairy digesters [6]. - The Keyes ethanol plant has been operational since 2011, supplying animal feed and capturing carbon dioxide for reuse, indicating a commitment to sustainable practices [5].