Aemetis, a renewable fuels company, is poised to leverage India's emerging biodiesel market through its subsidiary Universal Biofuels. The company has secured $58 million in biodiesel allocations for 2025 from government-owned oil refiners and marketing companies, with shipments expected to begin in March.
Universal Biofuels, operating an 80 million gallon per year plant in Kakinada, Andhra Pradesh, generated $112 million in revenues from biodiesel and refined glycerin in the past year. The company is preparing for an initial public offering and has recently appointed a new CEO to lead this strategic move.
India's National Biofuels Policy targets a 5% blend ratio, representing approximately 1.2 billion gallons annually, though current implementation stands at only 1%. Aemetis CEO Eric McAfee highlighted the significant environmental and economic potential, noting that India's 25 billion gallon petroleum-based diesel market contributes substantially to air pollution and health problems.
A key challenge and opportunity lies in feedstock access. McAfee emphasized that removing India's 27.5% import tariff on soy oil could create a multi-billion dollar market for U.S. agricultural exports. This would enable increased biodiesel production using imported renewable oils alongside local feedstocks.
The company's strategic positioning comes at a crucial time, with potential policy shifts and growing environmental consciousness driving renewable fuel adoption. Aemetis sees this as an opportunity to expand its international renewable energy footprint while supporting sustainable fuel development.
