Universal Biofuels begins biodiesel shipments to India government-owned OMCs under new $31 million allocation

Aemetis Inc. announced the company’s subsidiary in India, Universal Biofuels, began shipments April 24 to fulfill multiple orders for more than 33 million liters (8.7 million gallons) of biodiesel from the government-owned oil-marketing companies (OMCs) for an aggregate of $31 million for delivery during May, June and July. 

Additional OMC orders are expected throughout the year to continue shipments to fuel-blending terminals on an ongoing basis to support the India government goal of increasing from a 1 percent biodiesel blend to 5 percent.

A 5 percent biodiesel blend is approximately 1.2 billion gallons, a significant increase from less than a 1 percent blend of biodiesel that is currently used in India.

“We are pleased with the expanded commitment to biofuels that is being shown by the India government, including the achievement of a 20 percent blend of ethanol and new goals including a 30 percent ethanol blend,” said 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,” McAfee added.

“We have already made the capital investments that allow us to quickly increase production volumes as new orders are issued by the OMCs,” he said.

Recently, India has stated plans for further growth in the use of biofuels, expanding revenues for farmers while reducing the importation of petroleum gasoline into India.

India’s strong commitment to expanding biofuels markets supports the Aemetis India business plan for further expansion and a planned initial public offering (IPO), subject to continued favorable stock-market conditions.

Universal Biofuels completed $112 million of biodiesel and glycerin shipments in the 12 months ended September 2024, including deliveries to the three government-owned OMCs under a cost-plus contract.

During a recent plant upgrade and maintenance period, Universal Biofuels expanded the production capacity of its proprietary process that produces biodiesel from waste and byproducts that Universal utilizes to produce biofuels that are lower carbon intensity at a significantly reduced cost.

Aemetis’ Universal Biofuels subsidiary is one of the largest biodiesel producers in India, having been in operation for more than 17 years.

Universal Biofuels increased its annual biodiesel production capacity from 60 million gallons to 80 million gallons in the past year, with further biodiesel expansion to other locations and diversification into biogas production planned during the next 12 months.