Low Cost Market Leader Provides Significant Discount to Diesel without Subsidies
CUPERTINO, Calif. – March 30, 2015 – Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced that sales activity is accelerating in India after the Government of India deregulated sales by biodiesel producers into the diesel market in January 2015.
India’s GDP is slated to grow more than 8% per year for the next 5 to 10 years. The India diesel market is currently about 25 billion gallons per year, which is significantly larger than the current gasoline market of 5 billion gallons per year.
In October 2014, India ended fuel subsidies which had cost the Government of India approximately $11 billion during the prior year. In January 2015, the Government of India took further steps to support biodiesel production and distribution by allowing biodiesel manufacturers such as Aemetis to sell to customers directly, without distributing through the three national oil marketing companies.
“The elimination of the fuel subsidy and the termination of the requirement to sell biodiesel through government fuel marketers opens up a very large market in India,” said Eric McAfee, Chairman and Chief Executive Officer of Aemetis. “The existing commercial scale biodiesel producers in India have combined capacity of only about 250 million gallons per year, of which Aemetis is a leader in quality and price.”
“The removal of barriers to the sale of biodiesel in India has opened a market for up to 5 billion gallons per year of biodiesel at a 20% blend with diesel,” said Sanjeev Gupta, Managing Director of the Universal Biofuels Private Ltd. subsidiary of Aemetis.
Aemetis has production capacity of about 50 million gallons per year (190 million liters) at the Kakinada facility located on the East Coast of India. At full production, the revenue potential from this refinery is approximately $180 million per year. Aemetis has expanded its sales team, selling to customers including the Indian Railways, bus and truck fleets, and diesel generators.
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 first-generation ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in the California 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 and Europe. Aemetis operates a research and development laboratory at the Maryland Biotech Center, 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 regarding our growth opportunities, our ability to grow and expand our business in India, the impact of increasing our sales efforts in India, expected growth in India’s GDP, the size of the market for biodiesel in India and the revenue potential presented by the India market. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “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 and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, counter-party risks, risks associated with changes to federal policy or regulation, risks associated with the conversion of the Keyes plant to the use of sorghum for ethanol production; and other risks detailed in our reports filed or to be filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2014 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.