Aemetis signs $30 million vapor recompression system deal with NPL

Aemetis Inc. (NASDAQ: AMTX) announced that its Keyes plant subsidiary signed an engineering, procurement, and construction contract with NPL Construction Co., a subsidiary of Centuri Holdings Inc. (NYSE: CTRI), to install a Mechanical Vapor Recompression system at its 65 million gallon per year ethanol production facility in Keyes, California. The project carries an estimated total cost of $30 million.

The project has received approximately $19.7 million in tax credits and grants from the Internal Revenue Service, California Energy Commission, and Pacific Gas & Electric. Construction is scheduled to complete in the second quarter of 2026.

According to the company, the MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80% once operational. Aemetis estimates the system will generate $32 million of incremental annual cash flow from energy savings, increase LCFS credits from reduced carbon intensity of ethanol produced, and increase transferrable Section 45Z production tax credits.

"NPL's construction of the MVR project is designed to deliver a high-return, high-impact upgrade to our California ethanol facility with minimal equity dilution," said Eric McAfee, Chairman and CEO of Aemetis. "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."

Centuri Holdings reported $2.6 billion in revenue as an infrastructure services contractor. "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," said Centuri US Gas President Dylan Hradek.

The information is based on a press release statement from Aemetis.

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