Aemetis, Inc., a renewable natural gas and renewable fuels company focused on low and negative carbon intensity products, announced that the Universal Biofuels subsidiary of Aemetis in India successfully completed delivery of $103 million of biodiesel to the three government-owned Oil Marketing Companies (OMCs) under cost-plus supply agreements for the one-year marketing period ending September 30, 2024.
According to the press release, Aemetis recently received an initial $58 million of new allocations from OMCs for biodiesel supply in the current marketing year ending September 30, 2025, and has been producing biodiesel for deliveries scheduled to begin this month. The first allocation of biodiesel deliveries for the current year was issued by the OMCs in late November 2024 and the pricing for the deliveries will be based on a cost-plus pricing formula. Multiple tenders were issued by OMCs during the last supply year ending September 30, 2024, and multiple tenders are expected again in the current year.
As part of a recent upgrade and maintenance cycle, Universal Biofuels significantly enhanced the production capacity of its proprietary biodiesel process. This process converts waste and byproducts into biodiesel, resulting in lower carbon intensity and significantly reduced production costs.
“Universal Biofuels has now successfully completed deliveries under the third set of cost-plus contracts with OMCs, highlighting our track record for producing high quality renewable fuels to support the India National Biofuels Policy goal of a 5% blend of biodiesel,” stated Eric McAfee, Chairman and CEO of Aemetis. “The recent capacity expansion of our proprietary biodiesel production process increases our profitability per gallon and supports the IPO process for Universal Biofuels that is currently under way.”
Currently, India blends biodiesel at about a 1% ratio into petroleum diesel. The cost-plus contract used by OMCs to purchase biodiesel has attracted new investment and capacity expansion to meet a projected $5 billion biodiesel market, expanding from 250 MGY to 1.25 billion gallons of biodiesel per year.
