Aemetis has announced that its subsidiary Universal Biofuels has won its first contract, worth US$6 million, to supply biodiesel to the India government-owned Oil Marketing Companies (OMC) in a public tender process.
US-headed advanced renewable fuels and biochemicals company Aemetis Inc., has announced that its subsidiary, India-based Universal Biofuels has won a US$6 million biodiesel supply contract with India government-owned Oil Marketing Companies (OMC). The contract was won through a public tender process and is the first such contract for the company.
According to Aemetis, the total diesel market in India is approximately 25 billion US gallons (≈ 94.63 billion litres) per annum, of which less than 250 million gallons (≈ 946.35 million litres) of biodiesel is currently blended. The OMC’s provide about 70 percent of the fuel consumed in India, and the diesel fuel market is growing at a rate of more than 5 percent per annum.
In 2016, the India government approved the use of up to 100 percent 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 OMC’s.
The government approval for sales of 100 percent 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. The 80 percent 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, said Eric McAfee, Chairman and CEO of Aemetis in a statement.
