The funds will be used to restart and operate the 55 million gallon per year ethanol plant located in Keyes.
The facility is expected to be fully operational by late April 2011.
In November 2010, AE Keyes also received $4.5m from Third Eye Capital to complete the repair and retrofit of the Keyes facility.
AE Keyes took possession of the facility under a project agreement with Cilion in 2010, and the revised deal extends the original lease from three to five years, with an early termination right at three years.
AE Keyes said it has also signed a grain supply and services contract with JD Heiskell & Co and an ethanol marketing agreement with Kinergy Marketing.
The company will market its wet distillers grains through an agreement with AL Gilbert.
AE Biofuels intends to introduce its patent-pending enzyme-based cellulosic ethanol technology at the Keyes facility and other California ethanol plants in 2011.
