Aemetis, Inc., a company focused on renewable natural gas and fuels with low and negative carbon intensity, announced today that its subsidiary at the Keyes plant has entered into an engineering, procurement, and construction (EPC) contract with NPL Construction Co., a subsidiary of Centuri Holdings, Inc. (NYSE: CTRI), a $2.6 billion infrastructure services provider. The contract aims to install a Mechanical Vapor Recompression (MVR) system at the company’s 65-million-gallon-per-year ethanol facility in Keyes, California. The total estimated cost of the project is $30 million.
The project has secured approximately $19.7 million in tax credits and grants, supported by the U.S. Department of Energy (via the Internal Revenue Service), the California Energy Commission, and Pacific Gas & Electric. The MVR system is expected to be completed by the second quarter of 2026.
Once the system is operational, it is projected to reduce natural gas consumption at the Keyes plant by up to 80%, leading to an estimated $32 million in incremental annual cash flow from energy savings. The upgrade will also enhance Low Carbon Fuel Standard (LCFS) credits due to a significant reduction in the carbon intensity of the produced ethanol and increase transferrable Section 45Z production tax credits.
“This project represents a high-return, impactful upgrade to our California ethanol plant with minimal equity dilution,” said Eric McAfee, Chairman and CEO of Aemetis. “The MVR system will significantly improve our operating margins, strengthen cash flow, and help us meet our goal of reducing emissions from the renewable fuel we produce.”
Dylan Hradek, President of Centuri US Gas, expressed enthusiasm about expanding the partnership with Aemetis. “We’re committed to advancing California’s clean energy goals through renewable fuels, and our team is well-equipped to deliver the energy infrastructure needed to build a more sustainable future,” he said.
The MVR project is a key component of Aemetis’ multi-year strategy to grow its Dairy Renewable Natural Gas production, which includes 18 dairies already in operation or under construction, along with the recent approval of seven California Air Resources Board (CARB) LCFS pathways. The system will enhance the efficiency of Aemetis’ California ethanol operations while capturing value from regulatory trends such as rising LCFS credit prices, Section 45Z tax credit monetization, and the anticipated adoption of E15 (15% ethanol blend) in California.
