Aemetis, Inc., a leading renewable natural gas and renewable fuels company with operations in the United States and India, announced on February 24 that its biodiesel plant in Kakinada, Andhra Pradesh, India, has received approval from the local Pollution Control Board (PCB) to restart production. This decision allows the company to resume fulfilling its commitments to government-owned oil marketing companies (OMCs) and other clients.

The PCB's approval, granted on Saturday, February 22, follows a thorough review of local air quality. This clearance marks the end of a temporary production pause, during which Aemetis took the opportunity to conduct essential maintenance work.

With an 80 million gallon annual capacity, Universal Biofuels, a subsidiary of Aemetis, is among India's largest biodiesel producers. With over 17 years of operational experience in the country, Universal Biofuels has established itself as a significant player in the Indian biofuels market. The company reported $112 million in revenue from biodiesel and refined glycerin deliveries for the year ending September 2024, demonstrating its strong market presence.

Eric McAfee, Chairman and CEO of Aemetis, emphasized the strategic importance of the plant's resumption. “The temporary pause in production at the India plant allowed us to conduct maintenance work,” said McAfee. “We had produced enough product prior to the shutdown to have sufficient inventory on hand to meet our delivery commitments. The expansion of our production capacity last year to 80 million gallons per year supports the need for more than 1 billion gallons of new biodiesel production in India,” he added.

India's 25 billion gallon per year petroleum diesel market faces significant environmental challenges, contributing to air pollution and public health issues. The Indian government's National Biofuels Policy mandates a 5% blend of biodiesel to mitigate these problems and promote sustainable energy solutions. However, current implementation stands at approximately 1% blend, highlighting the need for increased biodiesel production capacity.

Aemetis is poised to play a crucial role in bridging this gap. Universal Biofuels has already secured $58 million in allocations for 2025 deliveries from Indian OMCs, and the company anticipates commencing biodiesel shipments in March.

Looking ahead, Aemetis envisions a significant expansion of Universal Biofuels' production capacity, potentially exceeding 200 million gallons per year. This expansion aims to meet the burgeoning demand for biodiesel in India, estimated at 1.2 billion gallons annually.

In preparation for a planned initial public offering (IPO) of Universal Biofuels later this year, Aemetis has strengthened its leadership team. A new CEO has been appointed, and a new CFO with extensive IPO experience will be announced following a transition from his current role.