Aemetis, Inc. has recently declared that its Universal Biofuels subsidiary has won its first contract to supply biodiesel to the India government-owned Oil Marketing Companies (“OMC”) in a public tender process. The total diesel market in India is approximately 25 billion gallons per year, of which less than 250 million gallons per year of biodiesel is currently blended. The OMC’s provide about 70% of the fuel consumed in India, and the diesel fuel market is growing at a rate of more than 5% per year.
In 2016, the India government approved the use of up to 100% biodiesel to blend or replace diesel fuel, but biodiesel producers are currently limited to sales directly to bulk customers including trucking and bus companies and to Oil Marketing Companies. The government approval for sales of 100% biodiesel by producers to retail fuel stations is in the review process, but OMC’s are already approved to market blended biodiesel to railroads, bulk customers and retail stations.
“This Oil Marketing Company supply contract is a milestone in expanding the customer base for our 50 million gallon per year capacity India biodiesel plant,” stated Eric McAfee, Chairman and CEO of Aemetis. “The 80% reduction in particulate emissions provided by biodiesel is important for the improvement of air quality in India. The large capital investment in India made by Aemetis as a US company is aligned with the goals of Prime Minister Modi and Chief Minister Naidu in Andhra Pradesh. We look forward to expanding our biodiesel production capacity through capital investment and acquisitions to meet the growing demand for biodiesel and other renewable fuels in India.”