Aemetis Receives $150M Biodiesel Supply Allocation From India Oil Marketing Companies; Production And Delivery Of The New 40M Gallon Allocation Started In October 2023

Aemetis, Inc. +0.97%

Aemetis, Inc.

AMTX

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Aemetis, Inc. (NASDAQ:AMTX) announced todaythat its Universal Biofuels subsidiary in India, owner and operator of a 60 million gallon per year capacity biodiesel plant located near the Port of Kakinada on the East Coast of India, was selected by India's three government-controlled oil marketing companies (OMCs) to supply an estimated $150 million of biodiesel under cost-plus purchase contracts for approximately 40 million gallons of biodiesel during the one year period starting October 2023.

Approximately 70% of the 25 billion gallon diesel market in India is supplied by the OMCs, with the remaining 30% supplied by private oil refiners. The 2022 Amendment to India's National Policy on Biofuels targets a 5% minimum blend on direct sale of biodiesel by 2030 to expand the domestic production and consumption of biodiesel above the current 1% blend. The National Policy prohibits imports of biodiesel into India.

"During the recent G20 meeting, Prime Minister Modi of India launched the Global Biofuel Alliance and demonstrated leadership in encouraging renewable fuels pledges by the international community," stated Eric McAfee, Chairman and CEO of Aemetis.  "Since last year, the new policies have increased the demand for biodiesel in India, and more than one billion gallons per year of new production are needed to meet the 5% goal. Aemetis plans to continue to expand capacity to meet growing demand under the OMC cost-plus contract structure."

Aemetis built the 60 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 and has built a reputation as a reliable large-scale renewable fuel producer in India. Aemetis is the only producer that has delivered more than 99% of contracted gallons under prior OMC contracts.

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 tender offers. India's 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 and 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.

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