US-headed advanced renewable fuels company Aemetis Inc., has announced that its Universal Biofuels Pvt Ltd subsidiary in India has successfully completed delivery of US$103 million of biodiesel to the three government-owned Oil Marketing Companies (OMCs) under cost-plus supply agreements for the one-year marketing period ending September 30, 2024.
Aemetis India recently received an initial US$58 million of new allocations from OMCs for biodiesel supply in the current marketing year ending September 30, 2025, and has been producing biodiesel for deliveries scheduled to begin this month.
The first allocation of biodiesel deliveries for the current year was issued by the OMCs in late November 2024 and the pricing for the deliveries will be based on a cost-plus pricing formula.
Multiple tenders were issued by OMCs during the last supply year ending September 30, 2024, and multiple tenders are expected again in the current year.
During a recent biodiesel plant upgrade and maintenance cycle, Universal Biofuels significantly expanded the production capacity of its proprietary process to produce biodiesel from waste and byproducts with a lower carbon intensity and at reduced cost.
Universal Biofuels has now successfully completed deliveries under the third set of cost-plus contracts with OMCs, highlighting our track record for producing high-quality renewable fuels to support the India National Biofuels Policy goal of a 5 percent blend of biodiesel. The recent capacity expansion of our proprietary biodiesel production process increases our profitability per gallon and supports the IPO process for Universal Biofuels that are currently underway stated Eric McAfee, Chairman and CEO of Aemetis.
Currently, India blends biodiesel at about a 1 percent ratio into petroleum diesel. The cost-plus contract used by OMCs to purchase biodiesel has attracted new investment and capacity expansion to meet a projected US$5 billion biodiesel market, expanding from 250 million gallons to 1.25 billion gallons of biodiesel per year.
