Aemetis Secures Approval for MVR Project Expected to Boost Cash Flow by $32 Million Annually
- Project Approval: Aemetis has received construction permits for the mechanical vapor recompression (MVR) project at its 65 million gallon ethanol plant in Keyes, California, marking a significant advancement in energy efficiency for the company.
- Cash Flow Increase: The project is expected to generate an additional $32 million in annual cash flow from operations after its completion in mid-2026, primarily through energy cost reductions and increased income from Low Carbon Fuel Standard (LCFS) credits.
- Carbon Intensity Reduction: The MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80% and achieve a double-digit reduction in the carbon intensity of the fuel ethanol, thereby increasing the number of LCFS credits generated and enhancing the company's competitive position in the market.
- Strategic Investment: The project has secured approximately $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas and Electric, and the U.S. Internal Revenue Service, reflecting Aemetis' long-term commitment to renewable fuels and contributing to the creation of high-paying jobs in rural areas.
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- Tax Credit Sale: Aemetis' subsidiary Aemetis Biogas LLC successfully sold $17 million in federal clean energy tax credits, including $12 million from an Investment Tax Credit and $5 million from a Production Tax Credit, which is expected to generate approximately $15 million in net cash flow, significantly enhancing the company's financial flexibility.
- New Cash Flow Source: This transaction marks the company's first sale of a Section 45Z Clean Fuel Production Credit from dairy RNG, with expectations for additional similar transactions in the future, further driving cash flow growth from renewable natural gas production and enhancing the company's market competitiveness.
- Future Outlook: Aemetis anticipates that future 45Z tax credits will increase significantly due to rising production volumes and enhanced credit values mandated by the One Big Beautiful Bill Act, further solidifying the company's financial foundation and supporting production expansion.
- Strategic Execution: The company has completed $95 million in Investment Tax Credit transactions and is executing its tax credit monetization strategy with today's first Section 45Z sale, which is expected to become a vital source of operating cash flow to support production expansion and new job creation.

Market Performance: Oil and gas refining and marketing shares are down approximately 0.8% on Wednesday, with Delek US Holdings and Aemetis leading the decline at 3.9% and 3.6%, respectively.
Sector Laggards: The metals and mining sector, along with oil and gas refining and marketing stocks, are identified as laggards in the market on this day.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Video Content: A video segment highlights the sector laggards, specifically focusing on the performance of metals and mining, as well as oil and gas refining and marketing stocks.

- Project Approval: Aemetis has received construction permits for the mechanical vapor recompression (MVR) project at its 65 million gallon ethanol plant in Keyes, California, marking a significant advancement in energy efficiency for the company.
- Cash Flow Increase: The project is expected to generate an additional $32 million in annual cash flow from operations after its completion in mid-2026, primarily through energy cost reductions and increased income from Low Carbon Fuel Standard (LCFS) credits.
- Carbon Intensity Reduction: The MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80% and achieve a double-digit reduction in the carbon intensity of the fuel ethanol, thereby increasing the number of LCFS credits generated and enhancing the company's competitive position in the market.
- Strategic Investment: The project has secured approximately $19.7 million in grants and tax credits from the California Energy Commission, Pacific Gas and Electric, and the U.S. Internal Revenue Service, reflecting Aemetis' long-term commitment to renewable fuels and contributing to the creation of high-paying jobs in rural areas.
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Momentum Investing Strategy: Momentum investors focus on "buying high and selling higher," avoiding traditional strategies of buying low and waiting for recovery, which can be risky.
Aemetis (AMTX) Stock Performance: AMTX shows strong recent price momentum with a 22.3% increase over four weeks and a 2.5% gain over 12 weeks, making it a favorable investment choice.
Valuation and Earnings Estimates: AMTX has a favorable Momentum Score of B and a Zacks Rank #2 (Buy), indicating strong potential for price appreciation, while trading at a reasonable Price-to-Sales ratio of 0.82.
Investment Tools and Recommendations: Investors can utilize Zacks Premium Screens and the Research Wizard to identify winning stocks, with a focus on lesser-known AI firms for future profitability.
Market Performance: Computer peripherals shares have shown relative strength, increasing by approximately 1.6% overall on Monday.
Leading Companies: Lantronix led the gains in this sector with a rise of about 5.5%, while Seagate Technology Holdings increased by around 3.6%.
Sector Leaders: The report highlights that oil and gas refining & marketing, along with computer peripherals, are among the leading sectors on Monday.
Disclaimer: The views expressed in the article reflect the author's opinions and do not necessarily represent those of Nasdaq, Inc.







