Aemetis, a renewable fuels company, is positioning itself for substantial expansion in India's biodiesel market through its subsidiary Universal Biofuels. The company has secured $58 million in government allocations for biodiesel deliveries in 2025 and expects to begin shipments in March.
Universal Biofuels, operating an 80 million gallon per year plant in Kakinada, Andhra Pradesh, generated $112 million in revenues from biodiesel and refined glycerin in the year ending September 2024. The company is preparing for a potential initial public offering, having recently appointed a new CEO and planning to announce a new chief financial officer with Indian stock market experience.
The expansion comes amid India's National Biofuels Policy, which targets a 5% biodiesel blend ratio representing approximately 1.2 billion gallons annually. Currently, the market is implementing only a 1% blend, suggesting significant growth potential. Aemetis CEO Eric McAfee highlighted the environmental and economic implications, noting that India's 25 billion gallon annual petroleum-based diesel market contributes significantly to air pollution and health problems.
A key strategy for growth involves accessing renewable oil feedstocks, potentially including imports from U.S. soybean farmers. McAfee emphasized that removing India's 27.5% import tariff on soy oil could create a multi-billion dollar market for U.S. agricultural products and support biodiesel production expansion.
The company's efforts align with broader U.S. policies supporting export markets and agricultural product expansion, positioning Aemetis as a potentially pivotal player in international renewable fuel development.
