Aemetis Receives Key Equipment for Mechanical Vapor Recompression at Ethanol Plant

Aemetis, Inc. (NASDAQ: AMTX), a diversified renewable natural gas and biofuels company, announced today that it has received key equipment for its $40 million mechanical vapor recompression (MVR) system at its ethanol plant in Keyes, California, including the high efficiency turbofans and other components.

Once operational, the MVR system is expected to:

• Reduce natural gas usage at the Keyes plant by approximately 80%
  
• Increase annual cash flow from operations by $32 million
  
• Decrease the carbon intensity of the plant’s fuel ethanol, increasing the number of California Low Carbon Fuel Standard credits generated
  
• Increase the value of transferable Section 45Z Clean Fuel Production tax credits
  

“MVR technology is being adopted in the ethanol industry for energy savings and economic incentives associated with lower emission rates, and Aemetis is among the first producers in North America to install the system,” said Eric McAfee, Chairman and CEO of Aemetis. “As we invest in producing lower-cost fuels, we are expanding operational efficiencies that reduce costs and increase revenues.”

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The Aemetis ethanol plant produces 65 million gallons per year and has been operating since 2011. In addition to ethanol, it produces about 2 million pounds per day of animal feed for 80 dairies in California’s Central Valley to feed more than 100,000 dairy cows. More than 100,000 tons per year of carbon dioxide from the plant is captured for reuse as beverage-grade CO2 for food production and other applications.

The MVR installation will include six 3,500-horsepower electric turbofans that heat alcohol vapors to generate steam without using natural gas. The MVR system is under construction and expected to be operational by the end of 2026. The project has received approximately $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas & Electric, and the U.S. Internal Revenue Service via Section 48C investment tax credits.

About Aemetis

Headquartered in Cupertino, California, Aemetis is a diversified renewable natural gas and biofuels company focused on the development and operation of innovative technologies that lower energy costs and reduce emissions. Founded in 2006, Aemetis is operating and expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis owns and operates an 80 million gallon per year production facility on the East Coast of India producing high quality biodiesel and refined glycerin. To utilize the byproducts from ethanol production, Aemetis is developing a sustainable aviation fuel plant and a CO2 sequestration project in California. For additional information about Aemetis, please visit www.aemetis.com.