CUPERTINO, Calif. – April 8, 2015 – Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced that biodiesel sales activity is accelerating in India with travel bus operators who cater to the tourism industry.
Aemetis has expanded sales activity since the Government of India allowed biodiesel manufacturers such as Aemetis to sell to customers directly. The India diesel market is estimated at 25 billion gallons per year, which is significantly larger than the gasoline market of 5 billion gallons per year.
According to a study carried out by Nielsen Research for the Department of Petroleum Planning and Analysis, Ministry of Petroleum and Natural Gas, Government of India, buses consume about 10% of the annual diesel used. Diesel use by buses equates to 2.5 billion gallons of yearly consumption in India, of which more than 1 billion gallons is consumed in Southern and Western India providing a potential source of significant demand for the Aemetis biodiesel plant in Andhra Pradesh.
“Prime Minister Modi and the India Government are actively promoting biodiesel as an alternative to petroleum diesel to reduce more than $120 billion per year of crude oil imports,” said Eric McAfee, Chairman and Chief Executive Officer of Aemetis. “The lower cost of biodiesel compared to diesel is only one of several important drivers for the growth in the biodiesel market. By using biodiesel from Aemetis, travel operators are supporting improved air quality, expanded domestic jobs and reduced operating costs.”
“We have recently begun deliveries to travel bus operators in Southern and Western India,” said Sanjeev Gupta, Managing Director of the Universal Biofuels subsidiary of Aemetis. “The travel and tourism industry contributed about 6.2% of India’s GDP in 2013 and is forecasted to rise by 7% per year through 2024. The travel and tourism industry supports about 22 million jobs and helps India generate meaningful foreign exchange reserves.”
Aemetis owns and operates biodiesel 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. After the recent deregulation of diesel prices and market access, Aemetis expanded its sales team, selling to customers including the Indian railways, bus and truck fleets, taxis 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 and particularly to travel bus operators and the expected growth in India’s travel and tourism industry. 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.