In the United States (US), Aemetis, Inc., a renewable natural gas (RNG) and biofuels company, has announced that it is advancing decarbonization at its 65 million (US) gallon per annum ethanol plant in Keyes, California, with a US$30 million energy efficiency upgrade with integration of a Mechanical Vapor Recompression (MVR) system.
According to a statement, India-headed biorefinery technology provider Praj Industries Ltd has been selected to supply the advanced low-carbon Mechanical Vapor Recompression solution and equipment that form the key components of this system.
As previously announced, the project execution and implementation will be carried out by NPL Construction Co., a subsidiary of Centuri Holdings, Inc.
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, said Dylan Hradek, President of U.S. Gas at Centuri.
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 American 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. Together with Aemetis and Centuri, we are enabling meaningful progress in the US energy transition, said Dr Pramod Chaudhari, Chairman of Praj Industries.
The project has received approximately US$19.7 million in grants and tax credits from the California Energy Commission (CEC), Pacific Gas & Electric (PG&E), and Section 48C tax credits.
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, said Eric McAfee, Chairman and CEO of Aemetis.
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 percent,
- Generate an estimated US$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 California Air Resources Board (CARB) LCFS pathways.
