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].

Core Insights - Aemetis is advancing decarbonization at its Keyes, California ethanol plant through a $30 million energy efficiency upgrade that integrates a Mechanical Vapor Recompression (MVR) system supplied by Praj Industries [2][4] - The MVR system is expected to significantly reduce carbon intensity, enhance energy efficiency, and improve profitability for Aemetis [5][11] - The project has received approximately $19.7 million in grants and tax credits, supporting its financial viability and alignment with California's clean energy goals [4][11] Company Overview - Aemetis, Inc. is a renewable natural gas and biofuels company focused on innovative technologies that lower fuel costs and reduce emissions, operating a 65 million gallon per year ethanol production facility in California [7] - The company is also involved in a Dairy Renewable Natural Gas (RNG) program and is developing a carbon sequestration project and a renewable diesel fuel biorefinery [6][7] Project Details - The MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80% and generate an estimated $32 million of incremental annual cash flow from energy savings and increased revenues [11] - The project completion is scheduled for Q2 2026, and it aims to deliver a double-digit reduction in the carbon intensity of the plant's fuel ethanol, increasing LCFS credits [5][11] Strategic Partnerships - Praj Industries has been a technology partner to Aemetis for over a decade, contributing to the deployment of advanced low-carbon solutions [4] - Centuri Holdings is responsible for the project execution and implementation, aligning with sustainability goals [4][9]