Aemetis expands biodiesel sales to travel bus operators in tourism industry in India

Biodiesel sales activity is accelerating in India with travel bus operators who cater to the tourism industry, says California-headquartered advanced renewable fuels and biochemicals company Ametis.

Aemetis has expanded sales activity since the Government of India allowed biodiesel manufacturers to sell to customers directly. India's diesel market is estimated at 25 billion gallons per year. This is significantly larger than the petrol 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 (€111.5 billion) per year of crude oil imports,' says Eric McAfee, chairman and CEO of Aemetis. 'The lower cost of biodiesel compared to diesel is only one of several important drivers for the growth in the biodiesel market.'

Sanjeev Gupta, MD of the Universal Biofuels subsidiary of Aemetis, adds: 'We have recently begun deliveries to travel bus operators in Southern and Western India. 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 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.

 

SOURCE: Aemetis