Aemetis Inc is moving forward with a $30 million upgrade aimed at reducing emissions and improving energy efficiency at its 65 million gallon-per-year ethanol plant in Keyes, California. Central to this project is the installation of a Mechanical Vapor Recompression (MVR) system, supplied by Praj Industries brings advanced low-carbon technology to the facility. Construction and implementation are being handled by NPL Construction Co, a subsidiary of Centuri Holdings, Inc.
The Aemetis Keyes plant, operating since 2011 with Praj’s ethanol technology, has played a vital role in supporting California’s Low Carbon Fuel Standard and enhancing U.S. energy independence. This new project has secured around $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and the IRA 45Z tax credit program. The upgrade, slated for completion by mid-2026, is designed to significantly enhance operational efficiency and sustainability at the Keyes facility. Once implemented, it is expected to reduce natural gas consumption by approximately 80%, marking a major step toward cleaner and more cost-effective production.
In addition to lowering energy usage, the project is projected to generate around $32 million in annual savings through improved energy efficiency and process optimization. The modernization will also substantially reduce the carbon intensity of the ethanol produced, thereby increasing the value of Low Carbon Fuel Standard (LCFS) credits and positioning the facility to qualify for additional benefits under the Section 45Z production tax credit program. This initiative marks a major advancement in Aemetis’ broader strategy to reduce its carbon footprint, complementing its Dairy Renewable Natural Gas (RNG) program and recently approved CARB LCFS pathways.
Dr Pramod Chaudhari, Chairman of Praj Industries, commented: “For over ten years, Praj has supported Aemetis at this site with proven technology. This latest low-carbon solution will further lower the plant’s emissions while boosting operational efficiency and profitability. Alongside Aemetis and Centuri, we are driving meaningful progress in the transition to cleaner energy in the U.S.”
Eric McAfee, Chairman and CEO of Aemetis, stated “The MVR installation represents a smart, high-impact upgrade for our California ethanol plant. With Centuri’s EPC expertise and Praj’s trusted technology, we expect to improve margins, strengthen cash flow, and maximize benefits from available tax incentives—all while advancing our mission to supply lower-carbon renewable fuels.”
Dylan Hradek, President of US Gas at Centuri, added: “We’re proud to continue our partnership with Aemetis and Praj on this important energy efficiency project. Our construction capabilities and dedication to sustainability align well with California’s clean energy objectives, and we’re committed to delivering infrastructure that supports a greener future.”
By integrating the MVR system, Aemetis enhances its ethanol production with greater energy savings, carbon reduction, and margin growth. The project leverages favorable regulatory support including rising LCFS credit prices, Section 45Z tax incentives, and the increasing adoption of E15 gasoline blends in California.
Praj Industries, with over three decades of presence in the Americas, continues to be a preferred technology provider for renewable energy companies focused on decarbonization. Praj is India’s leading industrial biotechnology company with a four-decade legacy in environmental, energy, and agricultural processing sectors.
With over 1,000 customer references in 100+ countries, Praj offers sustainable bioenergy and bio-based solutions. Its flagship platforms—Bio-Mobility® for renewable fuels and Bio-Prism® for renewable chemicals and materials—support a circular bioeconomy. The company’s R&D center, Praj Matrix, underpins its drive toward clean energy innovations. Praj’s offerings include bio-energy solutions, critical process equipment, breweries, zero liquid discharge systems, and high purity water systems. The company is publicly listed on the Bombay and National Stock Exchanges.
Headquartered in Cupertino, California, Aemetis is a renewable fuels and RNG company focused on developing and operating advanced biofuel and biogas technologies to reduce greenhouse gases. Established in 2006, Aemetis operates a 65 million gallon-per-year ethanol plant in California and an 80 million gallon-per-year biodiesel facility in India. The company is also developing renewable jet and diesel fuels, renewable hydrogen, and hydroelectric power projects.
