Aemetis, Praj Partner On Rs 2.5 Billion Low-Carbon Upgrade

08 Oct 2025 CW Team

Operational since 2011, the Aemetis Advanced Fuels Keyes plant utilises Praj’s ethanol technology and has consistently contributed to California’s Low Carbon Fuel Standard (LCFS) and U.S. energy security.

The project has secured approximately Rs 1.6 billion ($19.7 million) in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and IRA Section 45Z tax credits. Scheduled for completion by Q2 2026, the MVR system is expected to:

Reduce natural gas consumption by around 80 per cent
Generate an additional Rs 2.7 billion ($32 million) in annual cash flow from energy savings
Achieve a double-digit reduction in the carbon intensity of ethanol
Expand eligibility for transferable Section 45Z production tax credits

This investment represents a major milestone in Aemetis’ wider decarbonisation roadmap, complementing its Dairy Renewable Natural Gas (RNG) programme and newly approved CARB LCFS pathways.

Dr Pramod Chaudhari, Chairman of Praj Industries, commented, “Praj has been a trusted technology partner to Aemetis for over a decade. This deployment of advanced low-carbon solutions marks a critical next step in lowering ethanol’s carbon intensity while improving efficiency and profitability. Together with Aemetis and Centuri, we are driving tangible progress in the U.S. energy transition.”

Eric McAfee, Chairman and CEO of Aemetis, added, “This MVR project represents a high-impact, high-return upgrade for our California facility. By leveraging Centuri’s EPC expertise and Praj’s proven technology, we aim to significantly enhance operating margins, strengthen cash flow, and capture the benefits of Section 45Z tax incentives while advancing our low-carbon fuel goals.”

Aemetis Inc. is advancing its decarbonisation strategy at its 65-million-gallon-per-year ethanol facility in Keyes, California, through a Rs 2.5 billion ($30 million) energy efficiency upgrade featuring a Mechanical Vapour Recompression (MVR) system. The advanced low-carbon technology and key components for the system are being supplied by Praj Industries, while NPL Construction Co., a subsidiary of Centuri Holdings Inc. (NYSE: CTRI), is overseeing project execution and implementation.Operational since 2011, the Aemetis Advanced Fuels Keyes plant utilises Praj’s ethanol technology and has consistently contributed to California’s Low Carbon Fuel Standard (LCFS) and U.S. energy security.The project has secured approximately Rs 1.6 billion ($19.7 million) in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and IRA Section 45Z tax credits. Scheduled for completion by Q2 2026, the MVR system is expected to:Reduce natural gas consumption by around 80 per centGenerate an additional Rs 2.7 billion ($32 million) in annual cash flow from energy savingsAchieve a double-digit reduction in the carbon intensity of ethanolExpand eligibility for transferable Section 45Z production tax creditsThis investment represents a major milestone in Aemetis’ wider decarbonisation roadmap, complementing its Dairy Renewable Natural Gas (RNG) programme and newly approved CARB LCFS pathways.Dr Pramod Chaudhari, Chairman of Praj Industries, commented, “Praj has been a trusted technology partner to Aemetis for over a decade. This deployment of advanced low-carbon solutions marks a critical next step in lowering ethanol’s carbon intensity while improving efficiency and profitability. Together with Aemetis and Centuri, we are driving tangible progress in the U.S. energy transition.”Eric McAfee, Chairman and CEO of Aemetis, added, “This MVR project represents a high-impact, high-return upgrade for our California facility. By leveraging Centuri’s EPC expertise and Praj’s proven technology, we aim to significantly enhance operating margins, strengthen cash flow, and capture the benefits of Section 45Z tax incentives while advancing our low-carbon fuel goals.”

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