Aemetis, a renewable fuels company, has announced its California ethanol plant has surpassed $2 billion in cumulative revenues since beginning operations in 2011. The Keyes plant, located near Modesto, has produced 768 million gallons of ethanol and 5.2 million tons of distillers grain, supplying feed to approximately 80 dairies.
A critical component of the company's future strategy is a $25 million Mechanical Vapor Recompression (MVR) energy efficiency project scheduled for completion in early 2026. This initiative is expected to significantly reduce the plant's carbon intensity and improve cash flow through multiple mechanisms.
The MVR system will compress vapors using low-carbon electricity, potentially reducing natural gas consumption by an estimated 80%. This transformation is projected to generate substantial financial benefits, including approximately $22 million annually from Section 45Z carbon intensity credits and additional revenues from California Low Carbon Fuel Standard (LCFS) credits.
Depending on LCFS credit prices, the project could generate up to $12 million in additional annual revenues. Combined with energy cost reductions, Aemetis anticipates more than $40 million in improved cash flow starting in 2026.
The project aligns with broader industry trends toward sustainable and energy-efficient fuel production, demonstrating how technological innovation can simultaneously reduce environmental impact and enhance economic performance in the renewable energy sector.
