Aemetis Ethanol Plant Reaches $2 Billion Revenue Milestone, Anticipates $40 Million Annual Boost from Energy Efficiency Project

Aemetis, a renewable fuels company, has announced its California ethanol plant near Modesto has generated over $2 billion in cumulative revenues since 2011, delivering 768 million gallons of ethanol and supporting regional agriculture through byproduct production.

The company is preparing to implement a $25 million Mechanical Vapor Recompression (MVR) energy efficiency project, which is expected to dramatically transform the plant's operational economics. By transitioning from natural gas to lower-carbon electricity, Aemetis anticipates reducing natural gas consumption by an estimated 80% and significantly lowering the plant's carbon intensity.

The MVR project is projected to generate substantial financial benefits. By reducing carbon intensity, the plant could improve cash flow by approximately $0.33 per gallon through Section 45Z revenues, translating to around $22 million annually. Additionally, the project is expected to increase California Low Carbon Fuel Standard (LCFS) credits, potentially generating another $12-18 million in annual revenues depending on credit prices.

These improvements align with broader industry trends toward more sustainable and energy-efficient production methods. The project demonstrates how renewable fuel producers can simultaneously reduce environmental impact and enhance financial performance through strategic technological investments.

Combined revenue and cost savings from the MVR project are estimated to provide more than $40 million in improved annual cash flow starting in 2026, marking a significant milestone in the company's operational strategy.