Universal Biofuels wins US$23 million biodiesel supply deal with Indian OMCs
US-headed advanced biofuels producer and technology developer Aemetis, Inc., has announced that its Universal Biofuels India subsidiary has been awarded a biodiesel supply contract with the three India government-owned Oil Marketing Companies (OMCs) in a public tender process. The contract provides for ongoing deliveries of biodiesel to a variety of blending locations in an aggregate amount of more than US$23 million during 2019. Biodiesel shipments are scheduled to begin this month.
According to a statement, the total diesel market in India is approximately 25 billion (US) gallons (≈ 94.6 billion lites) per annum with 80 percent imported, of which less than 250 million gallons (≈ 946.2 million litres) per annum of biodiesel is currently blended.
The 2018 National Biofuels Policy stated a plan to increase biodiesel blending to 5 percent of the diesel market, equal to more than 1.2 billion gallons (4.54 billion litres) annually. The OMC’s in India supply about 70 percent of the fuel consumed in India, and the diesel fuel market has been growing at a rate of more than 5 percent annually.
With the recent completion of our plant pretreatment unit and expansion to 50 million gallons of capacity per year from low cost, high free fatty acid feedstock, the Aemetis team in India is executing on a rapid increase in production and revenues this year by broadening our customers to include government, logistics, mining, retail fuel stations and other sectors. As the only US company producing biofuels in India, Aemetis built and has now fully upgraded our India biodiesel and refined glycerin plant to use low-cost feedstocks as a leader in this rapidly expanding market, stated Eric McAfee, Chairman, and CEO of Aemetis.