Aemetis Inc., a global renewable fuels and bioenergy company, announced that its Indian subsidiary, Universal Biofuels, has commenced biodiesel shipments to India’s government-owned Oil Marketing Companies (OMCs). The shipments will fulfill orders totaling more than 33,000 kiloliters, valued at $31 million, for delivery during May, June and July.

The orders are part of India’s strategic initiative to boost biofuel usage, with the government targeting an increase in biodiesel blending from the current level of less than 1% to 5%. Achieving this target would require roughly 1.2 billion gallons of biodiesel annually.

“We are encouraged by the India government’s expanded commitment to renewable fuels,” said Eric McAfee, chairman and CEO of Aemetis. “This includes the recent achievement of a 20% ethanol blend and new goals aimed at reaching 30%. To support this momentum, we began shipments today from existing inventory and are scaling up to $10 million per month to fulfill the $31 million in new biodiesel orders from OMCs over the next three months.”

Aemetis expects additional orders from OMCs to continue throughout the year. These shipments support the country’s goals of reducing petroleum imports and increasing domestic biofuel production, which also benefits India’s agricultural sector.

Universal Biofuels recently upgraded its production facility during a scheduled maintenance period, enhancing capacity through its proprietary process that converts waste and byproducts into low-carbon biodiesel at reduced costs. These enhancements allow the company to respond rapidly to increasing demand.

Over the 12-month period ending September 2024, Universal Biofuels delivered $112 million worth of biodiesel and glycerin, including contracted shipments to India’s three major government-owned oil companies under a cost-plus model.

Currently one of the largest biodiesel producers in India, Universal Biofuels has operated for more than 17 years. In the past year, it expanded annual production capacity from 60 million gallons to 80 million gallons, with further growth and diversification into biogas production planned over the next 12 months.

Aemetis’ strategy aligns closely with India’s long-term energy goals. The company continues to position itself for expansion, including plans for an initial public offering of its India operations, subject to market conditions.

India’s strong policy direction toward renewable energy sources is helping accelerate Aemetis’ presence in the region, building on government support and growing demand for cleaner alternatives to fossil fuels.

Based in Cupertino, California, Aemetis is a renewable natural gas and biofuels company focused on operating, acquiring, developing and commercializing advanced technologies that promote energy independence and sustainability. Founded in 2006, the company operates a growing network of biogas digesters and pipelines in California, converting dairy waste into renewable natural gas. Aemetis also owns and operates a 65 million-gallon-per-year ethanol plant in California’s Central Valley near Modesto. In addition to producing ethanol, the facility supplies animal feed to approximately 80 dairies in the region. Internationally, Aemetis runs an 80 million-gallon-per-year biofuels plant on India’s East Coast, where it produces high-purity distilled biodiesel and refined glycerin.