US company wins $6 million biodiesel contract with Indian government

Aemetis has won a $6 million (€5.5 million) contract to provide biodiesel to Indian government owned oil companies.

The Universal Biofuels subsidiary of Aemetis won the bumper contract to supply the Indian government-owned Oil Marketing Companies (OMC) through a public tender process.

India’s total diesel market stands at roughly 25 billion gallons a year, but less than 250 million gallons per year of biodiesel is currently blended. The OMCs provide about 70% of the fuel consumed in India annually, and the diesel fuel market is growing at a rate of more than 5% per annum.

The Indian government approved the use of up to 100% biodiesel to blend or replace diesel fuel in 2016, but biodiesel producers are currently limited to sales directly to bulk customers, such as trucking and bus companies, and to Oil Marketing Companies. The government approval for sales of 100% biodiesel by producers to retail fuel stations is in the review process, but OMCs are already allowed to market blended biodiesel to railroads, bulk customers and retail stations.

“This Oil Marketing Company supply contract is a milestone in expanding the customer base for our 50 million gallon per year capacity India biodiesel plant,” stated Eric McAfee, Chairman and CEO of Aemetis. 

“The 80% reduction in particulate emissions provided by biodiesel is important for the improvement of air quality in India.  The large capital investment in India made by Aemetis as a US company is aligned with the goals of Prime Minister Modi and Chief Minister Naidu in Andhra Pradesh.  We look forward to expanding our biodiesel production capacity through capital investment and acquisitions to meet the growing demand for biodiesel and other renewable fuels in India.”