Praj Industries is set to supply its advanced low-carbon solution and equipment to Aemetis Inc.’s 65 million gallon-per-year ethanol plant in Keyes, California. The project involves a $30 million energy efficiency upgrade, integrating a Mechanical Vapor Recompression (MVR) system. This collaboration aims to reduce carbon intensity and improve the plant’s profitability, furthering the U.S. energy transition.
Carbon Reduction Project
Praj Industries (NSE: PRAJIND, BSE: 522205) is providing its advanced low-carbon solution to Aemetis Inc. for their California-based ethanol plant. The project, announced on October 7, 2025, aims to significantly reduce carbon intensity at the facility.
Project Details and Scope
The $30 million project focuses on upgrading the energy efficiency of Aemetis’s 65 million gallon-per-year ethanol plant located in Keyes, California. The solution provided by Praj includes the integration of a Mechanical Vapor Recompression (MVR) system.
Expected Outcomes and Benefits
Upon completion, scheduled for Q2 2026, the upgrade is projected to:
- Reduce natural gas usage at the Keyes plant by approximately 80%.
- Generate an estimated $32 million of incremental annual cash flow from energy savings.
- Deliver a double-digit reduction in the carbon intensity of the plant’s fuel ethanol, increasing LCFS credits.
- Expand eligibility for transferable Section 45Z production tax credits.
Statements from Leadership
Dr. Pramod Chaudhari, Chairman of Praj Industries, stated, “Praj has been a trusted technology partner to Aemetis for more than a decade at this facility. The deployment of advanced low-carbon solution marks the next step in lowering the carbon intensity of ethanol while driving greater efficiency and profitability. Together with Aemetis and Centuri, we are enabling meaningful progress in the U.S. energy transition.”
Eric McAfee, Chairman and CEO of Aemetis, said, “This MVR project represents a high-return, high-impact upgrade to our California ethanol facility. By working with Centuri’s EPC team and Praj’s proven technology, we expect to materially improve operating margins, strengthen cash flow, and capture the benefits of Section 45Z tax credits while advancing our commitment to delivering lower-carbon renewable fuels.”
Centuri’s Role
NPL Construction Co., a subsidiary of Centuri Holdings, Inc., is responsible for the project’s execution and implementation.
Source: BSE