Aemetis, a renewable fuels company, has announced that its California ethanol plant has surpassed $2 billion in cumulative revenues, with a strategic energy efficiency project poised to significantly enhance its financial performance and environmental sustainability.
The Keyes plant, located near Modesto, California, has been operational since 2011 and has produced 768 million gallons of ethanol, generating $1.6 billion in revenues. Additionally, the facility has provided 5.2 million tons of wet distillers grain valued at $400 million, supporting approximately 80 dairies and over 100,000 dairy cows.
A key initiative driving future improvements is the $25 million Mechanical Vapor Recompression (MVR) system, scheduled for installation in late 2025 and full operations in the first half of 2026. The project aims to dramatically reduce natural gas consumption by utilizing high-capacity turbofans powered by lower-carbon electricity.
The MVR project is expected to generate substantial financial benefits through multiple channels. By reducing natural gas usage by an estimated 80%, the plant anticipates significant energy cost savings. Furthermore, the project is projected to decrease the carbon intensity of ethanol production, potentially generating additional revenue through government incentives.
Under the Treasury’s Section 45Z guidance, the MVR system could reduce the plant’s carbon intensity by approximately 15 points, translating to an estimated $22 million in annual cash flow improvements. California’s Low Carbon Fuel Standard (LCFS) credits are also expected to generate additional revenues, potentially reaching $12 million annually at current credit prices.
The 2-megawatt solar installation at the Keyes plant will support the reduced carbon intensity of operations, aligning with broader sustainability goals. Combined benefits from LCFS credits, new revenue streams, and energy cost reductions are anticipated to provide over $40 million in improved annual cash flow starting in 2026.
This strategic investment underscores Aemetis’ commitment to innovative, environmentally conscious manufacturing processes in the renewable fuels sector, demonstrating how technological advancements can simultaneously address economic and ecological challenges.
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