Aemetis Inc., a company focusing on renewable energy solutions, announced that its Indian subsidiary, Universal Biofuels, successfully delivered $103 million worth of biodiesel to three government-owned Oil Marketing Companies (OMCs). The deliveries were completed under supply agreements for the marketing year that ended on September 30, 2024, reported Biodiesle Magazine.
Universal Biofuels has already secured a new allocation worth $58 million from the OMCs for biodiesel deliveries in the current year, which runs until September 30, 2025. Production for this allocation has begun, with deliveries scheduled to start this month. The OMCs issued the first orders in late November, with pricing based on a cost-plus formula, and more tenders are expected in the coming year, similar to last year.
During a recent upgrade and maintenance period, Universal Biofuels expanded its production capacity. The facility is creating biodiesel using waste and byproducts. This has been proven to be the most cost-effective and environment-friendly source of energy.
Chairman and CEO, Aemetis Eric McAfee noted the success that the company had achieved regarding fulfilling government contracts. “Universal Biofuels completed its third round of biodiesel deliveries under cost-plus agreements, showing our dedication to helping India meet its aim of a 5% biodiesel blend,” he said. He added that the expanded production capacity boosts profitability and supports the company’s plans to take Universal Biofuels public.
India currently blends biodiesel at a rate of 1% into petroleum diesel, but the government aims to increase this to 5%. The cost-plus pricing model used by the OMCs has attracted new investments and encouraged capacity expansion. The country’s biodiesel market is expected to grow from 250 million gallons per year to 1.25 billion gallons annually, with a market value of $5 billion.
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