April 17, 2023
Aemetis Awarded $34 Million of Biodiesel Contracts by India Oil Refiners for Delivery in Q2 2023
Plant near the Port of Kakinada, India in production and delivering product to OMC’s
CUPERTINO, CA – April 17, 2023 – Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels subsidiary in India, owner and operator of a biodiesel plant located near the Port of Kakinada on India’s east coast, was selected by the three government-controlled oil marketing companies (OMC’s) to supply approximately 8,500,000 gallons of biodiesel over the next three months. Revenues from the shipments are expected to be approximately $34 million of the $538 million of total tender offers issued by the OMC’s to fulfill biodiesel demand during the second quarter of 2023.
Approximately 70% of the 25 billion gallon diesel market in India is supplied by the OMC’s, with the remaining 30% supplied by large non-governmental oil refineries.
“We are pleased to see the Indian government’s commitment to the implementation of the 2022 National Biofuels Policy, and the OMC’s purchasing processes are resulting in significantly increased demand for biodiesel in India,” stated Sanjeev Gupta, Managing Director of the Universal Biofuels subsidiary of Aemetis. “The required product quality testing for the contracts has been completed and biodiesel deliveries have commenced for the contracted period of April, May and June.”
Aemetis built the 50 million gallon per year capacity biodiesel plant on the East Coast of India to convert agricultural products and byproducts into high quality biodiesel that can reduce air pollution while creating new agricultural and manufacturing jobs in India. The Aemetis Universal Biofuels plant delivers high quality biodiesel fuel and has built a reputation as a proven large-scale renewable fuels producer in India.
The total volume tendered by the India OMC’s was approximately 132 million gallons for the three-month delivery period. As one of India’s largest domestic biodiesel producers, Aemetis Universal Biofuels is well positioned to expand production to meet the large domestic demand being created by the OMC’s tender offers.
A 5% minimum blend of biodiesel by 2030 was adopted as a goal under the 2022 amendment to the India National Policy on Biofuels to expand the domestic production and consumption of biodiesel. The biofuels policy seeks to improve the environment through lower air pollution from diesel vehicles and expand economic growth by increasing the domestic production of biodiesel feedstocks. Biodiesel feedstocks include renewable oils that are byproducts from food production, which can lower the overall cost of food and improve the environment by creating new markets for these byproducts.
Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the “Carbon Zero” production process to decarbonize the transportation sector using today’s infrastructure.
Aemetis Carbon Zero products include zero-carbon fuels that can “drop-in” to be used in airplanes, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle.
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel, and biochemicals company focused on the acquisition, development, and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas (RNG). Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India, producing high-quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero Sustainable Aviation Fuel (SAF) and renewable diesel fuel biorefineries in California from renewable oils and orchard and forest waste. Aemetis holds a portfolio of patents and exclusive technology licenses to produce 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 operation of and expected revenues from the biodiesel plant in India, our compliance with governmental programs, and our ability to access markets and funding to execute our business plan. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “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, including our Annual Report on Form 10-K for the year ended December 31, 2022 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.