Aemetis India Plant Receives $31 million of Biodiesel Orders from OMCs for Delivery in Next Three Months

Rhea-AI Summary

Aemetis (NASDAQ: AMTX) announced that its Indian subsidiary, Universal Biofuels, secured $31 million in biodiesel orders from government-owned Oil Marketing Companies (OMCs) for delivery during May-July 2025. The orders comprise over 33,000 kiloliters of biodiesel, supporting India's goal to increase biodiesel blend from 1% to 5%.

Universal Biofuels recently expanded its Kakinada plant capacity from 50 to 80 million gallons per year, implementing a proprietary process for lower-carbon biofuels production from waste and byproducts. The company completed $112 million in biodiesel and glycerine shipments in the twelve months ended September 2024.

Universal Biofuels is preparing for an IPO in India, expected in late 2025, subject to market conditions. The company plans further biodiesel expansion and diversification into biogas production in 2025.

Positive

• Secured new orders worth $31 million for May-July 2025 delivery
• Expanded production capacity by 60% to 80 million gallons annually
• Achieved $112 million in biodiesel and glycerine shipments in 12 months
• Planned IPO in India could provide additional growth capital
• Operating under cost-plus contracts with government OMCs

Negative

• OMCs did not take deliveries during winter period
• IPO completion dependent on favorable market conditions

Insights

Renewable Energy Industry Analyst

Aemetis secures $31M in biodiesel orders from Indian government, supporting growth amid expanding biofuel mandates and 60% capacity increase.

The $31 million biodiesel order from India's government-owned Oil Marketing Companies (OMCs) represents a significant revenue milestone for Aemetis' Indian subsidiary. These orders for 33,000 kiloliters of biodiesel delivery over the next three months signal the resumption of government purchases following a winter pause in deliveries. This timing aligns perfectly with India's policy shift from a 1% to 5% biodiesel blend target, which creates a massive market opportunity exceeding 1.2 billion gallons annually.

The recent expansion of Universal Biofuels' production capacity from 50 million to 80 million gallons per year (a 60% increase) strategically positions the company to capture greater market share as India's biodiesel mandate expands. This capacity increase was accompanied by implementation of proprietary processes that utilize waste and byproducts to produce lower carbon intensity biofuels at reduced costs – addressing both environmental concerns and profitability challenges.

India's renewable fuels policy environment provides a supportive backdrop, having already achieved 20% ethanol blending in gasoline with a new 30% target. This policy consistency reduces regulatory uncertainty for Aemetis. The mention that Universal Biofuels completed $112 million in biodiesel and glycerine shipments in the twelve months ending September 2024 demonstrates an established operational track record with the OMCs under cost-plus contracts, providing some margin protection within this government-influenced market.

Financial Analyst

$31M in new orders provides near-term revenue visibility while capacity expansion and planned India IPO create significant growth potential.

The $31 million in new OMC orders provides Aemetis with solid revenue visibility for Q2-Q3 2025, representing a significant portion of the company's business given its $85.6 million market capitalization. These biodiesel contracts appear to follow a seasonal pattern, with the article noting OMCs "did not take deliveries during this past winter" but are now resuming with these May-July delivery orders. Investors should note this seasonality in the revenue stream.

Universal Biofuels' plans for an IPO in India in late 2025 could be transformative for Aemetis' capital structure and valuation. While subject to "favorable stock market conditions" (indicating timing uncertainty), this transaction could unlock significant value by establishing a market valuation for this subsidiary that has completed $112 million in biodiesel and glycerine shipments in the twelve months ended September 2024.

The 60% production capacity increase (from 50 to 80 million gallons) positions Universal Biofuels to capture greater market share as India increases its biodiesel blending targets. The proprietary process development for utilizing waste and byproducts suggests potential margin improvements through reduced input costs. The "cost-plus contract" structure with government OMCs provides some pricing protection, though government-dependent markets always carry policy execution risks. Further diversification into biogas production and expansion to other locations planned for 2025 indicates a structured growth strategy beyond the current business model.

CUPERTINO, Calif., April 21, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a diversified global renewable natural gas and biofuels company, announced the Company’s subsidiary in India, Universal Biofuels, received multiple orders for an aggregate of $31 million for the delivery during May, June and July of more than 33,000 kiloliters of biodiesel to the three government-owned Oil Marketing Companies (OMCs).  

Additional OMC orders are expected throughout the year in order to continue shipments to fuel blending terminals on an ongoing basis to support the India government goal of increasing from a 1% to 5% biodiesel blend.

”Universal Biofuels and other biodiesel producers look forward to continuous support from the government of India to ensure that climate issues are addressed, while ensuring a healthy biodiesel industry,” stated Sanjeev Duggal, CEO of Universal Biofuels.

“We are pleased with the progress being made in India in support of the 5% biodiesel blending target of more than 1.2 billion gallons per year,” stated Eric McAfee, Chairman and CEO of Aemetis.  “The OMCs did not take deliveries during this past winter and instead decided to issue new orders for biodiesel with deliveries from May to July. Our Universal Biofuels subsidiary has successfully completed deliveries under contracts with the OMCs for the past several years, highlighting our track record for producing and timely delivering high quality renewable fuels at our India plant.”

Recently, India achieved a 20% ethanol blend into gasoline and the government stated a new 30% blend target for ethanol, enabling further growth in ethanol production and expanding revenues for farmers while reducing the importation of petroleum gasoline into India.

Universal Biofuels significantly expanded the production capacity of the Kakinada biodiesel plant to 80 million gallons per year during a recent plant upgrade and maintenance cycle, including expansion of its proprietary process that produces biodiesel from waste and byproducts that Universal utilizes to produce biofuels that are lower carbon intensity at a significantly reduced cost. 

Aemetis’ Universal Biofuels subsidiary is one of the largest biodiesel producers in India, having been in operation for more than 17 years. Universal Biofuels increased annual biodiesel capacity from 50 million gallons to 80 million gallons last year, with further biodiesel expansion to other locations and diversification into biogas production planned for 2025. To support further growth, Universal Biofuels is preparing for an IPO in India which is expected to be completed in late 2025, subject to continued favorable stock market conditions.

Universal Biofuels completed $112 million of biodiesel and glycerine shipments in the twelve months ended September 2024, including deliveries to the three government-owned oil marketing companies under a cost-plus contract. Shipments of biodiesel to OMC’s are expected to begin in early May under the next round of biodiesel contracts. 

About Aemetis

Headquartered in Cupertino, California, Aemetis is a renewable natural gas and renewable fuel company focused on the operation, acquisition, development, and commercialization of innovative technologies that replace petroleum products and reduce greenhouse gas emissions. Founded in 2006, Aemetis is operating and actively expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis owns and operates an 80 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin. Aemetis is developing a sustainable aviation fuel plant and a CO2 sequestration project in California. For additional information about Aemetis, please visit www.aemetis.com. 

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements include, without limitation, projections of financial results; statements related to the development, engineering, financing, construction and operation of the Aemetis biodiesel and other biofuel facilities; our ability to promote, develop, finance, and construct facilities to produce biodiesel, renewable fuels, and biochemicals; and statements about future market prices and results of government actions. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Reports on Form 10-K, and in our other filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

Company Investor Relations
Media Contact:
Todd Waltz
(408) 213-0940
investors@aemetis.com

External Investor Relations
Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com

FAQ

What is the value and volume of new biodiesel orders received by Aemetis (AMTX) for May-July 2025?

Aemetis received orders worth $31 million for delivering over 33,000 kiloliters of biodiesel to Indian Oil Marketing Companies.

What is the current production capacity of Aemetis' Universal Biofuels plant in Kakinada?

The Kakinada plant's production capacity was recently expanded from 50 to 80 million gallons per year.

When is Universal Biofuels, Aemetis' Indian subsidiary, planning its IPO?

Universal Biofuels is preparing for an IPO in India expected to be completed in late 2025, subject to favorable market conditions.

How much revenue did Universal Biofuels generate from biodiesel and glycerine shipments in the past year?

Universal Biofuels completed $112 million in biodiesel and glycerine shipments in the twelve months ended September 2024.

What is India's biodiesel blending target that Aemetis (AMTX) is supporting?

India aims to increase its biodiesel blend from 1% to 5%, targeting more than 1.2 billion gallons per year.