Aemetis, Inc., a global renewable natural gas and biofuels company, announced that its Indian subsidiary, Universal Biofuels, has received multiple biodiesel orders totaling $31 million. The deliveries, scheduled for May through July, will supply over 33,000 kiloliters of biodiesel to India’s three government-owned Oil Marketing Companies (OMCs).
These orders support the Indian government’s initiative to raise the national biodiesel blending target from 1% to 5%. Additional orders from the OMCs are anticipated throughout the year to maintain continuous supply to blending terminals.
Sanjeev Duggal, CEO of Universal Biofuels, stated, “Universal Biofuels and other producers are hopeful for continued support from the Indian government to address climate goals while ensuring the sustainability of the biodiesel industry.”
Eric McAfee, Chairman and CEO of Aemetis, commented, “We are encouraged by India’s commitment to achieving its 5% biodiesel blending target, which amounts to over 1.2 billion gallons annually. Although there were no OMC deliveries during the recent winter, new orders have now been placed for deliveries starting in May. Universal Biofuels has a solid track record of fulfilling OMC contracts, consistently delivering high-quality renewable fuels from our India plant.”
India recently achieved a 20% ethanol blend in gasoline and has announced a new goal of reaching a 30% blend. This move is expected to boost ethanol production, increase farmer revenues, and reduce the country’s reliance on imported petroleum.
To meet growing demand, Universal Biofuels recently expanded the capacity of its Kakinada biodiesel plant to 80 million gallons per year. The upgrade included enhancements to its proprietary process, which uses waste and byproducts to produce low-carbon, cost-effective biodiesel.
Universal Biofuels, one of India’s largest biodiesel producers, has been operational for over 17 years. Last year, the company increased its annual capacity from 50 million to 80 million gallons and is planning further expansion, including biogas production by 2025. To support its growth, Universal Biofuels is preparing for an initial public offering (IPO) in India, targeted for late 2025, pending favorable market conditions.
In the twelve months ending September 2024, Universal Biofuels completed $112 million in biodiesel and glycerine shipments, including supplies to the three OMCs under cost-plus contracts. Deliveries under the new contracts are set to begin in early May.
