Universal Biofuels receives $31 million in biodiesel orders from India government-owned OMCs

The Universal Biofuels plant in India. (Photo: Aemetis Inc.)

Aemetis Inc. announced April 21 the company’s subsidiary in India, Universal Biofuels, received multiple orders for an aggregate of $31 million for the delivery during May, June and July of more than 33 million liters (8.7 million gallons) of biodiesel to the three government-owned oil-marketing companies (OMCs).  

Additional OMC orders are expected throughout the year in order to continue shipments to fuel-blending terminals on an ongoing basis to support the India government goal of increasing from a 1 percent to 5 percent biodiesel blend.

“Universal Biofuels and other biodiesel producers look forward to continuous support from the government of India to ensure that climate issues are addressed, while ensuring a healthy biodiesel industry,” said Sanjeev Duggal, the CEO of Universal Biofuels.

“We are pleased with the progress being made in India in support of the 5 percent biodiesel-blending target of more than 1.2 billion gallons per year,” said Eric McAfee, the chairman and CEO of Aemetis. “The OMCs did not take deliveries during this past winter and instead decided to issue new orders for biodiesel with deliveries from May to July. Our Universal Biofuels subsidiary has successfully completed deliveries under contracts with the OMCs for the past several years, highlighting our track record for producing and timely delivering high-quality renewable fuels at our India plant.”

Recently, India achieved a 20 percent ethanol blend into gasoline and the government stated a new 30 percent blend target for ethanol, enabling further growth in ethanol production and expanding revenues for farmers while reducing imports of petroleum gasoline into India.

Universal Biofuels significantly expanded the production capacity of the Kakinada biodiesel plant to 80 million gallons per year during a recent plant upgrade and maintenance cycle, including expansion of its proprietary process that produces biodiesel from waste and byproducts used to produce biofuels that are lower carbon intensity at a significantly reduced cost. 

Aemetis’ Universal Biofuels subsidiary is one of the largest biodiesel producers in India, having been in operation for more than 17 years.

Universal Biofuels increased annual biodiesel capacity from 50 million gallons to 80 million gallons last year, with further biodiesel expansion to other locations and diversification into biogas production planned for 2025.

To support further growth, Universal Biofuels is preparing for an initial public offering (IPO) in India, which is expected to be completed in late 2025, subject to continued favorable stock-market conditions.

Universal Biofuels completed $112 million of biodiesel and glycerin shipments in the 12 months ended September 2024, including deliveries to the three government-owned OMCs under a cost-plus contract.

Shipments of biodiesel to OMCs are expected to begin in early May under the next round of biodiesel contracts.