Announcement
Aemetis Inc (NASDAQ: AMTX) reported that its Indian subsidiary, Universal Biofuels, has secured contracts to supply biodiesel valued at approximately $17 million. Following the announcement, Aemetis shares increased by 4.3 % on the trading day.
Contract Details
Universal Biofuels will deliver more than 18 million liters of biodiesel to India’s three government‑owned Oil Marketing Companies (OMCs) over a three‑month period. The supply aligns with India’s National Policy on Biofuels, which aims to raise biodiesel blending from the current 1 % to 5 % by 2030. In addition to the OMC deliveries, Universal Biofuels is providing distilled biodiesel to private commercial customers, and it expects further OMC fuel supply orders before the end of 2026.
Production Facility
The subsidiary operates one of the largest biodiesel production facilities in India, located in Kakinada, with an annual capacity of roughly 80 million gallons. The plant has been operational for more than 18 years and employs a proprietary enzymatic process that yields lower carbon‑intensity biodiesel.
Expansion and Financing Plans
Universal Biofuels is evaluating expansion opportunities to additional locations across India and is considering diversification into dairy biogas, ethanol, and sustainable aviation fuel production. The company is also preparing for a potential initial public offering on an Indian stock exchange, which would involve selling a minority equity stake to public investors, subject to market conditions.