Aemetis, a leading renewable fuels company, has recently obtained the necessary approval from the local Pollution Control Board to recommence biodiesel production at its India-based facility. This development, confirmed on February 22, 2025, enables Universal Biofuels, a subsidiary of Aemetis, to resume the manufacturing of biodiesel and refined glycerin at its plant in Kakinada, Andhra Pradesh. With an annual production capacity of 80 million gallons, Universal Biofuels has established itself as a key contributor to India's biofuels sector, having completed $112 million in biodiesel and refined glycerin deliveries in the fiscal year ending September 2024.
Eric McAfee, Chairman and CEO of Aemetis, highlighted that the temporary halt in production was utilized for essential maintenance activities. Despite the shutdown, the company ensured the availability of sufficient inventory to fulfill its delivery obligations. India's petroleum diesel market, which consumes approximately 25 billion gallons each year, is a major source of air pollution and associated health issues. In response, the National Biofuels Policy has introduced a 5% biodiesel blend mandate to mitigate environmental impact and foster new opportunities for agricultural and waste products. However, the current implementation level stands at only about 1%.
Universal Biofuels has already secured $58 million in allocations for 2025 from government-owned oil marketing companies, with shipments expected to commence in March. Additionally, the company is gearing up for a potential initial public offering (IPO) this year, following the recent appointment of a new CEO. Looking ahead, Aemetis plans to expand Universal Biofuels' production capacity to over 200 million gallons annually, aiming to address the anticipated biodiesel demand of 1.2 billion gallons per year. This expansion strategy includes exploring access to renewable oil feedstocks, possibly incorporating imported resources such as soybeans from the United States.
These strategic initiatives are in line with India's evolving policies that support renewable fuel production and the use of imported feedstock. By aligning with these policies, Aemetis is positioning itself to play a pivotal role in India's transition to sustainable energy solutions. For more information on Aemetis and its renewable energy projects, visit https://www.aemetis.com.
