Aemetis, a renewable fuels company operating in the United States and India, is preparing to expand its biodiesel production through strategic initiatives and potential policy reforms. The company’s subsidiary, Universal Biofuels, has already secured $58 million in biodiesel allocations for 2025 delivery from Indian government-owned oil refiners and marketing companies.
Universal Biofuels, with an 80 million gallon per year production facility in Kakinada, Andhra Pradesh, generated $112 million in revenues from biodiesel and refined glycerin deliveries in the fiscal year ending September 2024. The company plans to begin biodiesel shipments to oil marketing companies in March and is preparing for a potential initial public offering (IPO) this year.
India’s National Biofuels Policy aims to achieve a 5% biodiesel blend ratio, representing approximately 1.2 billion gallons per year. Currently, the implementation stands at only about 1% blend, presenting significant growth potential. The country’s large 25 billion gallon annual petroleum-based diesel market contributes substantially to air pollution and health concerns.
Aemetis CEO Eric McAfee highlighted the opportunity for U.S. agricultural exports, particularly soybean oil, if India removes its 27.5% import tariff on renewable oil feedstocks. Eliminating these trade barriers could create a multi-billion dollar market for U.S. farmers and help India address its environmental challenges.
The company’s expansion strategy focuses on accessing renewable oil feedstocks both domestically in India and through international imports. By supporting policies that facilitate feedstock access, Aemetis aims to increase its production volumes and contribute to India’s renewable energy transformation.
With a new CEO appointed to lead the potential IPO and plans to announce a CFO with Indian stock market experience, Universal Biofuels is strategically positioning itself for growth in the expanding Indian biodiesel market.
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