Cupertino: Aemetis, Inc., a global renewable natural gas and biofuels company, announced today that its Indian subsidiary, Universal Biofuels, has commenced shipments to fulfill multiple orders for over 33,000 kiloliters (approximately 8.7 million gallons) of biodiesel. These orders, valued at a total of $31 million, come from government-owned Oil Marketing Companies (OMCs) and are scheduled for delivery during May, June, and July.
The company anticipates receiving additional orders from OMCs throughout the year to ensure a continuous supply to fuel blending terminals. This ongoing demand supports the Indian government’s objective of increasing the national biodiesel blend from the current level of less than 1% to 5%. A 5% blend represents a significant increase, estimated at around 1.2 billion gallons of biodiesel annually.
“We are pleased with the expanded commitment to biofuels that is being shown by the India government, including the achievement of a 20% blend of ethanol and new goals including a 30% ethanol blend,” stated Eric McAfee, Chairman and CEO of Aemetis. “We began our biodiesel shipments today from inventory to quickly ramp up to $10 million per month of shipments and fulfill the $31 million of new orders from OMCs for biodiesel over the next three months. We have already made the capital investments that allow us to quickly increase production volumes as new orders are issued by the OMCs.”
Recent announcements from the Indian government have highlighted plans for further growth in the biofuels sector. This expansion is expected to boost revenues for farmers while reducing India’s reliance on imported petroleum gasoline. The government’s strong focus on expanding biofuels markets supports Aemetis India’s growth strategy and its planned Initial Public Offering (IPO), which is contingent on favorable stock market conditions.
In the twelve months leading up to September 2024, Universal Biofuels completed $112 million in biodiesel and glycerin shipments, including deliveries to the three government-owned oil marketing companies under a cost-plus contract. During a recent period of plant upgrades and maintenance, Universal Biofuels increased the production capacity of its unique process, which produces biodiesel from waste and byproducts. This allows the company to produce lower carbon intensity biofuels at a significantly reduced cost.Aemetis’ subsidiary, Universal Biofuels, has been operating for over 17 years and is one of the largest biodiesel producers in India. In the past year, Universal Biofuels has increased its annual biodiesel production capacity from 60 million gallons to 80 million gallons. The company has further plans for biodiesel expansion to other locations and diversification into biogas production within the next twelve months.
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