Universal Biofuels, the Indian subsidiary of California-based renewable fuels company Aemetis Inc has announced securing multiple orders totaling $31 million from government-owned Oil Marketing Companies (OMCs) for the delivery of over 33,000 kiloliters of biodiesel in the coming three months. The deliveries are slated for May, June, and July 2025, signaling a renewed push towards biodiesel blending in India.

To cater to the growing demand, Universal Biofuels has significantly expanded the production capacity of its Kakinada biodiesel plant to 80 million gallons per year. This expansion, undertaken during a recent plant upgrade and maintenance cycle, includes enhancements to its proprietary process for producing biodiesel from waste and byproducts. This innovative approach allows Universal Biofuels to produce lower carbon intensity biofuels at a considerably reduced cost.

This substantial order underscores the critical role Universal Biofuels plays in supporting India’s ambitious target of increasing the biodiesel blend in fuel from 1% to 5%. The company anticipates further orders from OMCs throughout the year as the nation strives to achieve this blending goal, which translates to over 1.2 billion gallons of biodiesel annually.

Sanjeev Duggal, CEO of Universal Biofuels, expressed optimism about the industry's future, stating, "Universal Biofuels and other biodiesel producers look forward to continuous support from the government of India to ensure that climate issues are addressed, while ensuring a healthy biodiesel industry."

Echoing this sentiment, Eric McAfee, Chairman and CEO of Aemetis, highlighted the progress in India's biofuel sector. "We are pleased with the progress being made in India in support of the 5% biodiesel blending target of more than 1.2 billion gallons per year," he commented. He further emphasized Universal Biofuels' consistent track record, noting, "Our Universal Biofuels subsidiary has successfully completed deliveries under contracts with the OMCs for the past several years, highlighting our track record for producing and timely delivering high quality renewable fuels at our India plant."

This development comes at a time when India is making significant strides in its biofuel blending program. The nation recently achieved a 20% ethanol blend in gasoline and has set an even more ambitious target of 30% ethanol blending. This focus on biofuels is expected to not only reduce India's reliance on imported petroleum but also boost the income of local farmers.

With over 17 years of operational experience, Aemetis’ Universal Biofuels subsidiary stands as one of the largest biodiesel producers in India. The company increased its annual biodiesel capacity from 50 million to 80 million gallons last year and has further expansion plans into other locations and diversification into biogas production slated for 2025.