Aemetis Keyes passes US$2 billion revenues milestone

Since 2011, the Aemetis Keyes biorefinery has delivered more than 768 million gallons (≈ 2.9 billion litres) of ethanol (US$1.6 billion in revenues) to the California market and 5.2 million tons of wet distillers grain (US$400 million in revenues) that has fed more than 100,000 dairy cows at about 80 dairies a lower cost, high-value animal feed.

In addition to ethanol and distillers’ grain, the plant delivered 144 million pounds of distillers’ corn oil (US$55 million in revenues), primarily used as animal feed and commonly used as a feedstock to produce renewable fuels. The plant also delivered 89,000 tons of syrup (US$5 million in revenues), used as animal feed.

Energy efficiency projects increase revenues and improve cash flow

A key energy efficiency project at the Aemetis Keyes biorefinery is the installation of a US$25 million Mechanical Vapor Recompression (MVR) system. This system will compress vapors with high-capacity turbofans powered by lower-carbon electricity, reducing the current use of fossil natural gas as process energy fuel.

The fabrication of the equipment for the MVR project is currently underway, with installation planned for Q4 2025 and full operations in the first half of 2026.

Recent updates in the calculation of the value of energy efficiency projects at ethanol plants have increased the estimated cash flow improvement expected from the MVR project.

By using lower-carbon electricity, the quantity of natural gas consumed and the cost of natural gas will be reduced by an estimated 80 percent, partially offset by an increased cost of electricity.

The 2 MW solar installation at the Keyes plant provides low-carbon electricity that supports the decreased carbon intensity of plant operations.

Importantly, converting from natural gas to electricity will significantly reduce the carbon intensity of ethanol produced by the Aemetis plant.

Based on the Treasury guidance provided in January, the MVR energy efficiency project will decrease the Section 45Z carbon intensity of the ethanol plant by about 15 points, improving the Keyes plant cash flow by an estimated US$0.33 per gallon, or approximately US$22 million per year.

Lower carbon intensity increases LCFS credits

In addition to 45Z revenues, the lower carbon intensity provided by the MVR system will increase the California Low Carbon Fuel Standard (LCFS) credits generated by the plant.

The reduction in carbon intensity expected from the MVR project is expected to increase revenues by US$0.09 per gallon at current LCFS credit prices of US$72 per tonne.

CARB’s recent updates to its LCFS regulations include significant reductions in the LCFS benchmark carbon intensity that are expected to create greater demand and lower supply of LCFS credits to increase LCFS credit prices.

At LCFS credit prices of US$150 per tonne, the MVR project would generate about US$0.18 per gallon of additional revenue or approximately a US$12 million increase in revenue per year.

Combined, the increase in LCFS credits, new 45Z revenues, and a significant reduction in energy costs are expected to provide over US$40 million per year of improved cash flow from the Aemetis Keyes biorefinery starting in 2026 as a result of the MVR energy efficiency project.