Renewable fuels company Aemetis, Inc. (Cupertino, Calif.) announced that it is advancing decarbonization at its 65 million gallon per year ethanol plant in Keyes, California with a $30 million energy efficiency upgrade with integration of a Mechanical Vapor Recompression (MVR) system. Praj Industries Ltd. (Pune, India) is supplying the advanced low-carbon solution and equipment that form the key components of this system. Project execution and implementation are being carried out by NPL Construction Co., a subsidiary of Centuri Holdings, Inc. (NYSE: CTRI).
The Aemetis Advanced Fuels Keyes facility has been operating since 2011, utilizing Praj’s ethanol technology, and has consistently delivered reliable performance while contributing to California’s low-carbon fuel standard and U.S. energy security.
“Praj has been a trusted technology partner to Aemetis for more than a decade at this facility. The deployment of this advanced low-carbon solution marks the next step in lowering the carbon intensity of ethanol while driving greater efficiency and profitability.” said Dr. Pramod Chaudhari, Chairman of Praj Industries. “Together with Aemetis and Centuri, we are enabling meaningful progress in the U.S. energy transition.”
“The MVR project represents a high-return, high-impact upgrade to our California ethanol facility,” said Eric McAfee, Chairman and CEO of Aemetis. “By working with Centuri’s EPC team and Praj’s proven technology, we expect to materially improve operating margins, strengthen cash flow, and capture the benefits of Section 45Z tax credits while advancing our commitment to delivering lower-carbon renewable fuels.”
“We are proud to expand our collaboration with Aemetis and Praj on this strategic energy efficiency project.” said Dylan Hradek, President of U.S. Gas at Centuri. “Centuri’s construction expertise and commitment to sustainability align perfectly with California’s clean energy goals, and we look forward to delivering the infrastructure that enables a more sustainable future.”
The project has received approximately $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and Section 48C tax credits.
Project completion is scheduled for Q2 2026 and, once operational, the MVR system is projected to:
- Reduce natural gas usage at the Keyes plant by approximately 80%
- Generate an estimated $32 million of incremental annual cash flow from energy savings and increased revenues
- Deliver a double-digit reduction in the carbon intensity of the plant’s fuel ethanol, increasing LCFS credits
- Expand the generation of transferable Section 45Z production tax credits
The MVR system strengthens Aemetis’ ethanol operations by combining energy efficiency, carbon reduction, and margin expansion, while capturing value from favorable regulatory frameworks, including rising LCFS credit prices, Section 45Z incentives, and the adoption of E15 gasoline blends in California.
This investment marks a significant step forward in Aemetis’ decarbonization strategy, complementing its Dairy Renewable Natural Gas (RNG) program and recently approved CARB LCFS pathways.