Wedoany.com Report-Oct. 14, Aemetis, Inc. (Cupertino, California) announced a $30 million energy efficiency upgrade at its 65 million gallon per year ethanol plant in Keyes, California, incorporating a Mechanical Vapor Recompression (MVR) system to advance decarbonization. Praj Industries Ltd. (Pune, India) is supplying the technology and equipment, while NPL Construction Co., a subsidiary of Centuri Holdings, Inc. (NYSE: CTRI), is executing the project.

The Keyes facility has been operating since 2011 using Praj’s ethanol technology, consistently contributing to California’s low-carbon fuel standard (LCFS) and U.S. energy security. Dr. Pramod Chaudhari, Chairman of Praj Industries, said: “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. Together with Aemetis and Centuri, we are enabling meaningful progress in the U.S. energy transition.”

Eric McAfee, Chairman and CEO of Aemetis, added: “The MVR project represents a high-return, high-impact upgrade to our California ethanol facility. 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.”

Dylan Hradek, President of U.S. Gas at Centuri, commented: “We are proud to expand our collaboration with Aemetis and Praj on this strategic energy efficiency project. 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 incentives. Completion is scheduled for Q2 2026. Once operational, the MVR system is expected to reduce natural gas usage by roughly 80%, generate about $32 million of incremental annual cash flow from energy savings and increased revenues, deliver a double-digit reduction in the carbon intensity of ethanol, and expand the generation of transferable Section 45Z production tax credits.

The upgrade strengthens Aemetis’ ethanol operations by combining energy efficiency, carbon reduction, and margin expansion while leveraging regulatory frameworks such as rising LCFS credit prices, Section 45Z incentives, and the adoption of E15 gasoline blends in California.

This investment complements Aemetis’ broader decarbonization strategy, including its Dairy Renewable Natural Gas (RNG) program and recently approved CARB LCFS pathways, highlighting the company’s focus on advancing low-carbon fuel production and sustainable energy solutions.