Aemetis, a renewable fuels company, has secured approval from the local Pollution Control Board to restart biodiesel production at its India plant, signaling a potential breakthrough in the country's renewable energy landscape. The plant, operated by Universal Biofuels, a subsidiary of Aemetis, has an annual production capacity of 80 million gallons and is poised to play a crucial role in India's efforts to reduce petroleum diesel consumption and mitigate environmental challenges.
The restart comes after a temporary production pause that allowed for maintenance work, with the company maintaining sufficient inventory to meet existing delivery commitments. Universal Biofuels has already received $58 million in allocations for 2025 delivery from government-owned oil marketing companies and expects to begin biodiesel shipments in March.
India's petroleum diesel market, estimated at 25 billion gallons annually, represents a significant source of air pollution. The national Biofuels Policy mandates a 5% biodiesel blend, though current implementation remains around 1%. Aemetis is strategically positioned to support this policy goal, with potential plans to expand production capacity to over 200 million gallons per year.
The company's expansion strategy includes exploring access to renewable oil feedstocks, potentially including imported agricultural products like soybeans from the United States. This approach aligns with potential new policies that could support renewable oil imports and enhance domestic biodiesel production.
With a planned initial public offering (IPO) for the Universal Biofuels subsidiary, Aemetis is taking strategic steps to capitalize on the growing demand for renewable fuels. The company's efforts could significantly contribute to reducing greenhouse gas emissions and supporting India's environmental sustainability objectives.
