Aemetis to Deliver Biodiesel to Indian Oil Refiners Through Contracts
- 03-May-2023 3:05 PM
- Journalist: Gabreilla Figueroa
United States: Aemetis, the parent company of Universal Biofuels, has made an announcement regarding its subsidiary's recent achievement. Universal Biofuels, which operates a Biodiesel plant in the vicinity of the Port of Kakinada in India, has been selected by the country's three government-controlled oil marketing companies (OMCs) to provide 8,500,000 gallons of Biodiesel within the next three months.
Around 70% of India's Diesel market, which amounts to 25 billion gallons, is currently supplied by OMCs with the remaining 30% sourced from non-governmental oil refineries. However, the Indian government's push for the 2022 National Biofuels Policy and OMCs' procurement practices are driving up the demand for Biodiesel in the country. Biodiesel deliveries have already begun after the quality tests for the contracts were successfully completed for the contracted period of April, May, and June.
Aemetis has successfully constructed a Biodiesel plant on the east coast of India with a 50 million gallon per year capacity. The plant aims to convert agricultural products and by-products into top-notch Biodiesel, which not only reduces air pollution but also generates new agricultural and manufacturing job opportunities throughout India. The Universal Biofuels plant by Aemetis is known for producing reliable and high-quality Biodiesel on a large scale in India.
Aemetis Universal Biofuels, one of India's top domestic Biodiesel producers, is ready to expand its production to meet the increasing demand created by OMC's tender offers. The India National Policy on Biofuels adopted a goal of a 5% minimum blend of Biodiesel by 2030 to promote domestic production and consumption of the fuel. Thanks to its prominent position in the market, Aemetis Universal Biofuels is well-equipped to contribute to achieving this target.
The new biofuels policy aims to achieve two objectives- reducing air pollution from Diesel vehicles and promoting economic growth by increasing the production of domestic Biodiesel feedstocks. These feedstocks include renewable oils that are obtained as by-products from food production, thereby reducing the overall cost of food. Moreover, the policy will help in creating new markets for these by-products, contributing to environmental sustainability.