Aemetis, Inc. (NASDAQ: AMTX), a diversified global renewable natural gas and biofuels company, announced that its Indian subsidiary, Universal Biofuels, has received multiple orders totaling $31 million for the supply of over 33,000 kiloliters of biodiesel to the three state-owned Oil Marketing Companies (OMCs) during May, June, and July.

Additional OMC orders are expected throughout the year to continue shipments to fuel blending terminals on an ongoing basis and thus support the Indian government’s goal of increasing biodiesel blending from 1% to 5%.

“Universal Biofuels and other biodiesel producers look forward to the continued support of the Indian government to ensure climate issues are addressed while ensuring a thriving biodiesel industry,” said Sanjeev Duggal, CEO of Universal Biofuels.

“We are pleased with the progress being made in India toward achieving the 5% biodiesel blending target, surpassing 1.2 billion gallons annually,” said Eric McAfee, President and CEO of Aemetis. “The OMCs did not receive deliveries last winter and instead decided to place new biodiesel orders for deliveries from May through July. Our subsidiary, Universal Biofuels, has successfully completed deliveries under contracts with the OMCs over the past several years, demonstrating our track record of producing and delivering high-quality renewable fuels on time at our Indian facility.”

India recently achieved a 20% ethanol blend in gasoline, and the government set a new 30% ethanol blending target, enabling further growth in ethanol production and increasing farmer incomes while reducing petroleum gasoline imports into India.

Universal Biofuels significantly expanded the production capacity of its Kakinada biodiesel plant to 80 million gallons annually during a recent modernization and maintenance cycle. This included the expansion of its proprietary process that produces biodiesel from waste and by-products, which Universal uses to produce lower-carbon biofuels at a significantly lower cost.

Aemetis’ Universal Biofuels subsidiary is one of India’s largest biodiesel producers, with over 17 years of operation. Universal Biofuels increased its annual biodiesel capacity from 50 million gallons to 80 million gallons last year, and plans to further expand biodiesel production to other locations and diversify into biogas production by 2025. To drive further growth, Universal Biofuels is preparing for an initial public offering (IPO) in India, which is expected to close by the end of 2025, subject to favorable stock market conditions.

Universal Biofuels completed shipments of biodiesel and glycerin worth $112 million in the twelve months ending September 2024, including deliveries to the three state-owned oil marketers under a cost-plus contract. Biodiesel shipments to the OMCs are expected to begin in early May under the next round of biodiesel contracts.

Press Release By Aemetis

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