In California, Aemetis, Inc. announced that its Keyes plant subsidiary has signed an engineering, procurement, and construction (EPC) contract with NPL Construction Co., a subsidiary of Centuri Holdings, Inc., to install a Mechanical Vapor Recompression (MVR) system at the company’s 65 million gallon per year ethanol production facility in Keyes, California, with an estimated total project cost of $30 million.
The project has received approximately $19.7 million in tax credits and grants from the Internal Revenue Service (upon recommendation by the U.S. Department of Energy), California Energy Commission, and Pacific Gas & Electric. The MVR project is scheduled to complete construction in Q2 2026.
Once operational, the MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80%, generating an estimated $32 million of incremental annual cash flow from energy savings, increasing LCFS credits from a double-digit reduction in the carbon intensity of ethanol produced, and increasing transferrable Section 45Z production tax credits.
Tags: Aemetis, California, EPC
Category: Fuels
