Universal Biofuels, the India-based subsidiary of global renewable natural gas and biofuels producer Aemetis Inc., has secured significant biodiesel orders totaling $31 million from India’s three state-owned Oil Marketing Companies (OMCs). The deliveries, amounting to over 33,000 kiloliters, are scheduled to take place between May and July reports Pipeline & Gas Journal.
These contracts align with India’s objective to increase its biodiesel blending rate from the current 1% to 5%. The company anticipates receiving further orders later in the year to maintain a continuous supply to fuel blending terminals.
Sanjeev Duggal, CEO of Universal Biofuels, expressed optimism about the industry’s future, stating, “Universal Biofuels and other biodiesel producers look forward to continuous support from the government of India to ensure that climate issues are addressed, while ensuring a healthy biodiesel industry.”
Eric McAfee, Chairman and CEO of Aemetis, noted a shift in procurement strategy by the OMCs. “The OMCs did not take deliveries during this past winter and instead decided to issue new orders for biodiesel with deliveries from May to July,” he explained. He further highlighted Universal Biofuels’ consistent performance, adding, “Our Universal Biofuels subsidiary has successfully completed deliveries under contracts with the OMCs for the past several years, highlighting our track record for producing and timely delivering high quality renewable fuels at our India plant.”
India has recently achieved a 20% ethanol blend in gasoline and has announced plans to increase this to 30%, with similar ambitious blending targets for biodiesel. These initiatives form part of broader governmental efforts aimed at reducing the nation’s reliance on petroleum imports and boosting income for farmers.
To meet the anticipated surge in demand, Universal Biofuels has expanded the production capacity of its Kakinada biodiesel plant from 50 million to 80 million gallons per year. This upgrade included enhancements to the company’s proprietary technology, enabling the conversion of waste and byproducts into low-carbon biodiesel at reduced costs.
Universal Biofuels has been operating in India for over 17 years and achieved $112 million in biodiesel and glycerine shipments in the 12 months leading up to September 2024. The company has further expansion plans for biogas production and other locations in 2025. Additionally, Universal Biofuels is preparing for a potential Initial Public Offering (IPO) in India by late 2025, contingent upon favorable market conditions.
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