India plant expected to deliver 8 million gallons of biodiesel in two months; Plant expected to reach 100% capacity due to strong domestic demand
CUPERTINO, CA – August 29, 2022 – 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) and a major oil refiner to supply approximately 8,000,000 gallons of biodiesel over the next two months. The combined revenues from the shipments are expected to be about $41 million and are scheduled to require the Aemetis biodiesel/glycerin production plant to operate near 100% capacity.
About 70% of the diesel and gasoline in India is supplied by the OMC’s, with the remaining fuel supplied by large non-government refineries. This volume of biodiesel to be supplied by Aemetis is expected to continue to occur in two-month bidding tenders on an ongoing basis to meet the requirements of the recently updated India National Biofuels Policy.
“We are pleased to see the 2022 National Biofuels Policy and related OMC purchasing processes are resulting in increased demand for biodiesel in India,” stated Eric McAfee, Chairman and CEO of Aemetis. “We built our 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 producer in India.”
The total volume tendered by the India OMC’s was approximately 360 million gallons for the two month delivery period, which equals more than 2 billion gallons of ongoing biodiesel demand on an annual basis from the OMC’s. Additionally, with limited domestic biodiesel production capacity to meet the goals of the India National Biofuels Policy, the private oil refineries in India have actively moved forward with biodiesel purchases and have begun to develop long-term biodiesel supply relationships. As one of India’s largest domestic biodiesel producers, Aemetis Universal Biofuels is well positioned to help meet this growing domestic demand.
India consumes about 25 billion gallons of petroleum diesel each year. A 5% minimum blend of biodiesel was adopted as a goal under the 2022 National Biofuels Policy to reduce the importation of crude oil into India. The biofuels policy seeks to improve the environment through lower air pollution from diesel vehicles and an improved economy 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.
The non-OMC refinery purchase order is immediately in effect and biodiesel deliveries are scheduled to commence in early September. The OMC’s are in the process of final documentation and product testing before deliveries are expected to begin in September. The Aemetis Universal Biofuels biodiesel sample successfully exceeded the specifications in the first independent test for biodiesel quality that was required by the OMC purchase order process.
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 airplane, 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. 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 to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using low carbon intensity hydroelectric power and renewable hydrogen, while pre-extracting cellulosic sugars from waste orchard and forest wood to be processed into high value cellulosic ethanol at the Keyes plant. 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 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, 2021 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.