The Golden Cow – Is India the place to be for biofuels?

“Aemetis may be based in California, but it has set sights in India thanks to the country’s growing biofuel market. And it’s not just Aemetis that sees India’s biofuel market as key for their own growth, but what exactly is the market there? What is it predicted to be? Is India the cash cow for biofuels? Or even the golden cow? If Aemetis’ recent 200% year over year increase in biodiesel sales is any indication…well, let’s just say we see the value.

The market

It is estimated that the ethanol market in India alone is projected to grow from $2.50 billion in 2018 to $ 7.38 billion by 2024, exhibiting a CAGR of 14.50% during 2019-2024. Another report by the International Energy Agency says the Indian biofuel market is forecasted to grow 11% from 2019 to 2024 and referred to India’s 2018 biofuels policy created by the government which “widened the permitted feedstock base for ethanol and introduced subsidies to expand production capacity, establishing the foundations for ethanol output growth.”

As reported in The Digest just a few weeks ago, the USDA’s attaché reports that ethanol blending this year could reach a record 5.8%, above last year’s 4.1% as the government pushes for higher blending through deregulation of feedstocks, soft loans for increased investment in ethanol production and focus on 2G ethanol technologies and commercialization.

The government

So why is the market expected to grow so significantly? Why has it been growing over the last few years already? It’s partially thanks to the government.

Government support for biofuels – it’s something many people want but it’s also something that is rare around the world. There are really only a handful of countries globally that are putting significant efforts towards promoting biofuels. Even the U.S. government hasn’t been 100% fully behind biofuels – just look at the recent small refinery waivers and the wimpy ethanol and biodiesel government volume numbers over the last few years.

But without government support, it’s an uphill battle for biofuels. Not impossible. Not a pie in the sky dream. But definitely challenging.

That’s why the Indian government’s push for biofuels is impressive. Why would the government want more biofuels? To save the environment? To lower GHG emissions?

Sure, that’s part of it, but from what we can see from the government website and published documents, the focus on the “why” of biofuels has been simply national security – the government wants to lower reliance on importing energy from other countries.

Call it nationalist. Call it homeland security. Call it whatever you want, but the fact is they repeatedly refer to biofuels as a way to lower reliance on exports. Not to mention, they want to show the world that they are Innovators. Entrepreneurs. Creative problem solvers. Technical geniuses.

So what is the government’s biofuel policy?

As reported in The Digest a week ago, celebrations of the country’s World Biofuel Day over the weekend led to the government highlighting their interest in the procurement of biodiesel from used cooking oil across 100 cities and asking for companies to submit Expression of Interest (EOI). The purpose of inviting this EOI is to encourage the applicants to set up Biodiesel producing plants from Used Cooking Oil (UCO), processing plants and further utilizing the existing potential of UCO based Bio-diesel in India.

The National Policy on Biofuels envisages production of biofuel from UCO and the Food Safety and Standards Authority of India (FSSAI) is implementing a strategy to divert UCO from the food value chain and curb current illegal usage.

The 2018 India National Biofuels Policy stated a 5% biodiesel blending goal for transport vehicles, equal to about 1.1 billion gallons per year of biodiesel production. In late 2018, the three India OMC’s that supply about 70% of India domestic diesel issued purchase requests for about 260 million gallons of biodiesel for year 2019 – equal to the entire biodiesel production capacity in India.

While the government has looked at biodiesel from jatropha, as well as used cooking oil, it goes beyond one or two feedstocks. They are looking at all sorts of non-food options which is smart to avoid getting bombarded with attacks because of the food vs. fuel issue. And they want to avoid the palm oil debacle that Indonesia and Malaysia have been dealing with. So they are investing heavily in waste. Used cooking oil. Waste gases. Municipal solid waste. Agricultural waste. Basically any kind of waste is fair game.

Scientists from India-based CSIR-CMERI even developed a simplified, semi-continuous process to produce biodiesel from any feedstock with fatty acid content of up to 10%, from jatropha to jojoba to animal fats, be it virgin oils or waste fats. The technology was developed with small and medium enterprises in mind, producing biodiesel with up to 11 cents per liter profit, paying back investment on the technology in under a year.

The government also created an autonomous Institution of the Ministry of New and Renewable Energy called the Sardar Swaran Singh National Institute of Renewable Energy (SSS-NIRE). It is spread over a sprawling campus of about 75 acres and is focused on biomass energy.

“The objectives of the Institute is to carry out and facilitate research, design, development, testing, standardization & technology demonstration eventually leading to commercialization of RD&D output with a focus on bioenergy, biofuels & synthetic fuels in solid, liquid & gaseous forms for transportation, portable & stationary applications, development of hybrid / integrated energy systems, to undertake & facilitate human resource development and training in the area of bioenergy,” according to the government website.

What’s Aemetis’ role in all this?

Ok, so the government wants biofuels. The National Biofuel Policy requires it. But are there companies that can meet the demand?

For sure. Let’s start with Aemetis, an international renewable fuels and biochemicals company using patented industrial biotechnology for the construction and operation of advanced biorefineries. They own and operate a 60+ million gallon ethanol plant in California, a 50 million gallon capacity Biodiesel and Glycerin refinery in India, they are building a $50 million Dairy Biogas digester, pipeline and cleanup system, and are developing $175 million Cellulosic Ethanol plant (waste orchard wood feedstock).

As reported in the Digest just a few weeks ago, they reported a 200% year over year increase in biodiesel sales volumes at their India plant. Their Q2 results showed the volumes rise high from 4,282 metric tons to 12,960 metric tons. Not only that, but they expanded the India plant and operations, representing a 106% increase from the prior year quarter and 22% of total revenue for the quarter – with $11.1 million of revenue just from India operations in Q2.

In July, the Digest reported that Aemetis’ Universal Biofuels India subsidiary ramped revenues to more than a $50 million per year run rate after biodiesel shipments commenced in May pursuant to the previously announced $23 million biodiesel supply contract to the three India government-owned Oil Marketing Companies (OMC’s).”

– Helena Tavares Kennedy, Biofuels Digest

Full Article

Aemetis to Review Second Quarter Results on August 8, 2019

CUPERTINO, CA – Monday, August 5, 2019 – Aemetis, Inc. (NASDAQ: AMTX) announced that the company will host a conference call to review the release of its second quarter earnings report:

Date:   Thursday, August 8, 2019
Time:   11 am Pacific Standard Time (PST)
Live Participant Dial In (Toll Free): +1-844-602-0380
Live Participant Dial In (International): +1-862-298-0970
Webcast URL: https://www.investornetwork.com/event/presentation/52798

Attendees may submit questions during the Q&A portion of the conference call.

After August 8th, the webcast will be available on the Company’s website (www.aemetis.com) under Investors/Conference Calls. The voice recording will also be available through August 11, 2019 by dialing (Toll Free) 877-481-4010 or (International) 919-882-2331 and entering conference ID number 52798.

 

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries.  Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California’s Central Valley, near Modesto.  Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India, the US and Europe.  Aemetis is building a dairy digester, pipeline and gas conditioning system near its plant in California to produce below zero carbon content Renewable Natural Gas (RNG). Aemetis operates a research and development laboratory, and holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals.  For additional information about Aemetis, please visit www.aemetis.com.

Aemetis India Expands Revenues to $50 million per year run rate driven by Biodiesel Shipments to Large Refiners

CUPERTINO, CA and HYDERABAD, INDIA – July 15, 2019 – Aemetis, Inc.  (NASDAQ: AMTX) announced today that its Universal Biofuels India subsidiary ramped revenues to more than a $50 million per year run rate after biodiesel shipments commenced in May pursuant to the previously announced $23 million biodiesel supply contract to the three India government-owned Oil Marketing Companies (OMC’s).

“The supply contract with the OMC’s was announced in March and we began biodiesel deliveries in mid May to multiple OMC locations,” stated Eric McAfee, Chairman and CEO of Aemetis.  “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.”

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.  The 2018 India National Biofuels Policy stated a 5% biodiesel blending goal for transport vehicles, equal to about 1.1 billion gallons per year of biodiesel production. In late 2018, the three India OMC’s that supply about 70% of India domestic diesel issued purchase requests for about 260 million gallons of biodiesel for year 2019 – equal to the entire biodiesel production capacity in India.

A high import tariff blocks the importation of biodiesel into India.  Since the India government ended biodiesel subsidies in late 2014, the recent 15%+ increase in WTI and Brent crude oil prices has resulted in increased diesel (and biodiesel) prices in India.

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 gallon diesel market in India.

 

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries.  Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California’s Central Valley, near Modesto.  Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India, the US and Europe.  Aemetis is building a dairy digester, pipeline and gas conditioning system near its plant in California to produce below zero carbon content Renewable Natural Gas (RNG).  Aemetis operates a research and development laboratory, and holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals.  For additional information about Aemetis, please visit www.aemetis.com.

 

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the production or effectiveness of the India production facility, the achievement of market expansion for products produced at the India production facility, and the continuance of governmental mandates for biodiesel. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties.  Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2018, and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

Aemetis India Plant Achieves Record $4 Million Monthly Domestic Biodiesel Revenue as Shipments Begin Under OMC Contract

CUPERTINO, CA and HYDERABAD, INDIA – June 13, 2019 – Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels India subsidiary achieved record domestic biodiesel revenues in May as shipments commenced under the previously announced $23 million biodiesel supply contract to the three government-owned Oil Marketing Companies (OMC’s).

“The supply arrangement announced in March has now resulted in a rapid ramp-up of biodiesel deliveries to about $4 million for the month of May, which was the first month of shipments to OMC’s,” stated Eric McAfee, Chairman and CEO of Aemetis. “The India business continues to expand its market reach by winning new customers in trucking, mining and construction. We are also expanding the number of retail fueling stations in India that sell our clear, distilled, Universal Biofuels brand biodiesel.”

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 gallon diesel market in India.

 

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries.  Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California’s Central Valley, near Modesto.  Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India, the US and Europe.  Aemetis is building a dairy digester, pipeline and gas conditioning system near its plant in California to produce below zero carbon content Renewable Natural Gas (RNG). Aemetis operates a research and development laboratory, and holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals.  For additional information about Aemetis, please visit www.aemetis.com.

 

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the production or effectiveness of the India production facility, the achievement of market expansion for products produced at the India production facility, and the continuance of governmental mandates for biodiesel. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties.  Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2018, and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

Aemetis India Plant Awarded Large Biodiesel Supply Contract in Mining Sector

In California, Aemetis, Inc.’s Universal Biofuels India subsidiary was awarded a large ongoing supply contract for distilled biodiesel by a multi-site mining company for use in dump trucks and other heavy diesel equipment at mines in Southern and Central India. Shipments have already begun to the mining customer under the supply agreement and will be expanded to additional mines as on-site biodiesel storage is installed.

Mining trucks and other large equipment at mines is estimated to require more than 25 million gallons per year of biodiesel, equal to 50% of the capacity of the India plant, as the mining supply agreement is expanded and other mining companies adopt biodiesel. Distilled biodiesel is a lower cost fuel than diesel, emits 90% lower particulate emissions and significantly reduces carbon emissions.

– Helena Tavares Kennedy, Biofuels Digest

Full Article

Aemetis India Plant Awarded Large Biodiesel Supply Contract in Mining Sector

CUPERTINO, CA and HYDERABAD, INDIA – May 6, 2019 – Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels India subsidiary has been awarded a biodiesel supply contract with the three India government-owned Oil Marketing Companies 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 $23 million during 2019. Biodiesel shipments are scheduled to begin this month.

The total diesel market in India is approximately 25 billion gallons per year with 80% imported, of which less than 250 million gallons per year of biodiesel is currently blended. The 2018 National Biofuels Policy stated a plan to increase Biodiesel blending to 5% of the diesel market, equal to more than 1.2 billion gallons per year. The OMC’s in India supply about 70% of the fuel consumed in India, and the diesel fuel market has been growing at a rate of more than 5% per year.

“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,” stated Eric McAfee, Chairman and CEO of Aemetis. “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.”

 

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California’s Central Valley, near Modesto. Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India, the US and Europe. Aemetis operates a research and development laboratory, and holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.

 

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the production or effectiveness of the India production facility, the achievement of certain cost advantages for product produced at the India facility, and the continuance of governmental mandates for biodiesel. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2017, and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

Aemetis India Plant wins $23 million Biodiesel Supply Contract with India State-Owned Oil Companies

CUPERTINO, CA and HYDERABAD, INDIA – May 6, 2019 – Aemetis, Inc.  (NASDAQ: AMTX) announced today that its Universal Biofuels India subsidiary has been awarded a biodiesel supply contract with the three India government-owned Oil Marketing Companies 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 $23 million during 2019.  Biodiesel shipments are scheduled to begin this month.

The total diesel market in India is approximately 25 billion gallons per year with 80% imported, of which less than 250 million gallons per year of biodiesel is currently blended.  The 2018 National Biofuels Policy stated a plan to increase Biodiesel blending to 5% of the diesel market, equal to more than 1.2 billion gallons per year. The OMC’s in India supply about 70% of the fuel consumed in India, and the diesel fuel market has been growing at a rate of more than 5% per year.

“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,” stated Eric McAfee, Chairman and CEO of Aemetis.  “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.”

 

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries.  Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California’s Central Valley, near Modesto.  Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India, the US and Europe.  Aemetis operates a research and development laboratory, and holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals.  For additional information about Aemetis, please visit www.aemetis.com.

 

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the production or effectiveness of the India production facility, the achievement of certain cost advantages for product produced at the India facility, and the continuance of governmental mandates for biodiesel. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties.  Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2017, and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.