Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company specializing in low and negative carbon intensity products, has announced a major step forward in its sustainability strategy. The company’s Keyes plant subsidiary has entered into an engineering, procurement, and construction (EPC) agreement with NPL Construction Co., a unit of Centuri Holdings, Inc. (NYSE: CTRI). Centuri, a $2.6 billion infrastructure services provider, will install a Mechanical Vapor Recompression (MVR) system at Aemetis’ 65-million-gallon-per-year ethanol facility in Keyes, California.
The total cost of the project is estimated at $30 million. Aemetis has already secured approximately $19.7 million in tax credits and grants to support the investment. These funds come from the Internal Revenue Service—based on recommendations from the U.S. Department of Energy—as well as from the California Energy Commission and Pacific Gas & Electric.
Construction is scheduled for completion in the second quarter of 2026. Once operational, the MVR system is expected to cut natural gas consumption at the Keyes plant by roughly 80%. This reduction is projected to generate around $32 million in additional annual cash flow through energy savings, lower carbon intensity (CI) scores boosting Low Carbon Fuel Standard (LCFS) credits, and enhanced eligibility for transferrable Section 45Z production tax credits.
Eric McAfee, Chairman and CEO of Aemetis, described the project as “a high-return, high-impact upgrade” to the company’s California facility, emphasizing that it delivers value with “minimal equity dilution.”
“The MVR system is expected to materially improve operating margins, strengthen cash flow, and advance our commitment to reducing emissions from the renewable fuel we produce,” McAfee said.
Dylan Hradek, President of Centuri’s U.S. Gas division, highlighted the partnership’s role in supporting California’s clean energy targets. “We are pleased to expand our partnership with Aemetis in pursuit of a shared public-private commitment to advancing California’s clean energy goals through the production of renewable fuels,” he said. “We have the people and capabilities to provide the energy infrastructure solutions required to build a more sustainable future and look forward to our role in this project.”
The MVR project aligns with Aemetis’ broader, long-term strategy to grow its Dairy Renewable Natural Gas operations. The company currently has 18 dairies in operation or under construction and recently secured approval for seven LCFS pathways from the California Air Resources Board (CARB).
This new system is expected to further enhance the profitability and sustainability of Aemetis’ California ethanol operations by improving energy efficiency, expanding margins, and capitalizing on favorable regulatory trends—including rising LCFS credit prices, monetization of Section 45Z tax credits, and the anticipated adoption of E15 (15% ethanol blend) fuel in California.
