Aemetis, a leader in renewable fuels, has reported that its California ethanol plant has exceeded $2 billion in cumulative revenues. The Keyes plant, operational since 2011, has not only produced 768 million gallons of ethanol but also contributed significantly to the local agriculture by supplying 5.2 million tons of wet distillers grain, supporting around 80 dairies and over 100,000 dairy cows.
The company is now focusing on a $25 million Mechanical Vapor Recompression (MVR) system, expected to be installed by late 2025 and fully operational by the first half of 2026. This project is designed to reduce natural gas consumption by 80%, leveraging high-capacity turbofans powered by lower-carbon electricity. The initiative is a cornerstone of Aemetis' strategy to enhance both financial performance and environmental sustainability.
Financial benefits from the MVR project are multifaceted. The reduction in natural gas usage is anticipated to lead to significant energy cost savings. Moreover, the project is expected to lower the carbon intensity of ethanol production, which could unlock additional revenue through government incentives. Specifically, under the Treasury's Section 45Z guidance, the MVR system could reduce the plant's carbon intensity by about 15 points, potentially improving annual cash flow by $22 million.
California's Low Carbon Fuel Standard (LCFS) credits are another revenue stream, with projections suggesting up to $12 million annually at current credit prices. The integration of a 2-megawatt solar installation at the Keyes plant further supports the reduction in carbon intensity, aligning with Aemetis' sustainability objectives. Collectively, these initiatives are expected to boost annual cash flow by over $40 million starting in 2026.
This strategic investment by Aemetis highlights the company's dedication to pioneering environmentally friendly manufacturing processes in the renewable fuels sector. It exemplifies how technological innovation can simultaneously tackle economic and environmental challenges, setting a benchmark for the industry. For more information on Aemetis and its projects, visit https://www.aemetis.com.
