US-headed biochemicals and biofuels producer Aemetis Inc., has announced that its Universal Biofuels India subsidiary located in the state of Andhra Pradesh has been selected by the Andhra Pradesh State Road Transport Corporation (APSRTC) to supply approximately 800 000 (US) gallons (≈ 3.03 million litres) per month of biodiesel to fuel public transport buses in the region. The arrangement, valued at around US$3 million per month, is expected to be ongoing to meet the needs of APSRTC.
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The State of Andhra Pradesh has a population of 84 million people, including approximately 28 000 villages. One of the world’s largest bus fleet operators, APSRTC currently operates 11,522 buses with 423 bus stations, 128 depots, and 692 bus shelters. The Corporation’s buses connect villages to all major towns and cities in the State of Andhra Pradesh, as well as cities in the neighboring states of Tamilnadu, Karnataka, Odisha, and Telangana.
The supply agreement was arranged after the Aemetis plant was evaluated and approved for quality and production capacity by the APSRTC Head of Engineering.
After an initial ramp-up period, revenues from the APSRTC supply agreement are expected to be about 20 percent of our plant capacity generating US$36 million per year including glycerin byproducts, for a total of US$180 million under the recently announced Aemetis Five Year Plan. We built our 50 million gallons per year capacity biodiesel plant in the port city of Kakinada in the State of Andhra Pradesh on the East Coast of India to convert waste from the edible oil industry into high-quality biodiesel. The selection of Universal Biofuels to supply APSRTC is the result of many years of reliably producing a high-quality product and building our reputation as a proven large-scale producer, said Eric McAfee, Chairman, and CEO of Aemetis.