Universal Biofuels India expands revenues to US$50 million per annum run rate
US-headed advanced biofuels producer and process developer Aemetis Inc., has announced that its Universal Biofuels India subsidiary has ramped revenues to more than a US$50 million per annum run-rate after biodiesel shipments commenced in May pursuant to the previously announced US$23 million biodiesel supply contract to the three India government-owned Oil Marketing Companies (OMC’s). Biodiesel use in India is expanding at a rapid rate to reduce air pollution and carbon emissions.
The 2018 India National Biofuels Policy stated a 5 percent biodiesel blending goal for transport vehicles, equal to about 1.1 billion (US) gallons (≈ 4.16 billion litres) per annum of biodiesel production. Biodiesel use in India is expanding at a rapid rate, led by the India OMC’s, in order to reduce air pollution and carbon emissions.
In late 2018, the three India OMC’s that supply about 70 percent of India domestic diesel issued purchase requests for about 260 million gallons (≈ 1 billion litres) of biodiesel for the year 2019 – equal to the entire biodiesel production capacity in India.
Tariffs block biodiesel imports
At the same time, a high import tariff blocks the importation of biodiesel into India. Since the Government of India ended biodiesel subsidies in late 2014, the recent 15 percent+ increase in WTI and Brent crude oil prices have resulted in increased diesel, and biodiesel, prices in the country.
The Aemetis biodiesel plant in India recently completed the installation and commissioning of a pretreatment plant and related utilities upgrades to convert lower cost, waste feedstocks into high quality distilled biodiesel to supply the approximately 25 billion (US) gallon (≈ 94.6 billion litre) diesel market in India.
The supply contract with the OMC’s was announced in March and we began biodiesel deliveries in mid-May to multiple OMC locations. While ramping up biodiesel production to achieve new records, during the past few months the India plant has also recently upgraded its onsite power generators, improved truck access for inventory loading and is installing additional automation systems to maximize production yields while minimizing costs, stated Eric McAfee, Chairman, and CEO of Aemetis.