Aemetis signs $30 million contract for energy efficiency upgrade

CUPERTINO, Calif. - Aemetis, Inc. (NASDAQ:AMTX), a renewable fuels company with a market capitalization of $143 million, has 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 Keyes, California ethanol facility, according to a press release statement. According to InvestingPro data, the company currently operates with a significant debt burden of $479 million.

The project, estimated to cost $30 million, has secured approximately $19.7 million in tax credits and grants from the Internal Revenue Service, California Energy Commission, and Pacific Gas & Electric. Construction is scheduled for completion in Q2 2026.

The MVR system is expected to reduce natural gas usage at the 65 million gallon per year ethanol plant by approximately 80%. The company projects the upgrade will generate an estimated $32 million in annual cash flow through energy savings, increased Low Carbon Fuel Standard credits from carbon intensity reduction, and transferrable Section 45Z production tax credits. This potential improvement in cash flow is crucial, as InvestingPro data reveals the company’s current gross profit margins are negative, with revenue of $224 million in the last twelve months. For deeper insights into Aemetis’ financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

NPL Construction Co. will handle installation of the system, which aims to improve operating margins while reducing emissions from the facility’s renewable fuel production.

The project aligns with Aemetis’ ongoing expansion of its Dairy Renewable Natural Gas production, which currently includes 18 dairies either operating or under construction. The company recently received approval for seven California Air Resources Board LCFS pathways.

Aemetis focuses on renewable natural gas and renewable fuels production, with operations in California and India. Centuri Holdings provides utility infrastructure services across the United States and Canada.

In other recent news, Aemetis Inc. reported its second-quarter 2025 earnings, which did not meet analysts’ expectations. The company announced an earnings per share (EPS) of -$0.41, missing the anticipated -$0.28. Additionally, Aemetis reported revenue of $52.2 million, falling short of the projected $79 million. These results highlight a significant revenue shortfall for the quarter. Despite the disappointing earnings report, there has been no mention of any changes in analyst ratings or mergers involving Aemetis. Investors may want to keep an eye on future developments as the company navigates these challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.