Aemetis receives equipment for $40M MVR at Keyes ethanol plant

Equipment and scope

Aemetis has received key components for a $40 million mechanical vapor recompression (MVR) system at its Keyes, California ethanol plant, including high-efficiency turbofans and other parts. The MVR installation will include six 3,500-horsepower electric turbofans that heat alcohol vapors to generate steam without using natural gas.

Expected operational impacts

Once operational, the MVR system is expected to reduce natural gas usage at the Keyes plant by approximately 80% and increase annual cash flow from operations by $32 million. The change will lower the plant’s carbon intensity for fuel ethanol, increasing the number of California Low Carbon Fuel Standard (LCFS) credits generated and enhancing the value of transferable Section 45Z Clean Fuel Production tax credits.

Schedule and financing

The MVR system is under construction and is expected to be operational by the end of 2026. The project has received approximately $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and the U.S. Internal Revenue Service via Section 48C investment tax credits.

Plant profile

The Keyes ethanol plant produces 65 million gallons per year and has operated since 2011. In addition to ethanol, it produces about 2 million pounds per day of animal feed supplied to 80 dairies feeding more than 100,000 dairy cows. The plant captures more than 100,000 tons per year of carbon dioxide for reuse as beverage-grade CO2 and other applications.