Aemetis India unit begins $17m biodiesel deliveries to state OMCs

Universal Biofuels, the India subsidiary of NASDAQ-listed Aemetis (AMTX), has begun deliveries under allocations to supply more than 18 million litres of biodiesel to India's three state-owned Oil Marketing Companies (OMCs) over a three-month period. The contracts are expected to generate approximately $17 million in revenue, according to Aemetis.

The Kakinada-based plant, on India's eastern coast, is described by Aemetis as one of the country's largest biodiesel producers. The company says the facility has an annual production capacity of around 80 million gallons, following expansions that included a proprietary enzymatic process the company says lowers the carbon intensity of its output and reduces unit costs. Universal Biofuels also supplies distilled biodiesel to private commercial customers alongside the OMC contracts, and Aemetis said it anticipates further OMC supply orders before the end of 2026.

Policy context

The deliveries are directly linked to India's National Policy on Biofuels, which targets raising the biodiesel blending mandate from its current 1% to 5% by 2030. Aemetis chairman and chief executive Eric McAfee pointed to rising crude oil prices as an additional driver, noting that diesel price increases in India have strengthened the government's incentive to accelerate blending. The 5% target would require more than 1.2 billion gallons of biodiesel per year, according to McAfee's figures, implying a significant ramp in domestic production capacity if India is to source supply locally rather than through imports.

Universal Biofuels CEO Sanjeev Duggal said the company is working with the government to build out a broader domestic biodiesel industry. Neither executive disclosed the contracted price per litre, margin, or the terms under which further OMC allocations might be awarded.

Growth pipeline

Beyond the current OMC contracts, Universal Biofuels is exploring expansion to additional sites in India, as well as diversification into dairy biogas, ethanol and sustainable aviation fuel (SAF). To fund that growth, Aemetis says Universal Biofuels is preparing for a potential initial public offering (IPO) of a minority equity stake on an Indian stock exchange, subject to market conditions. No timeline, indicative valuation, or underwriter was disclosed.

The Indian biofuels market sits within a broader regional push to reduce dependence on imported fossil fuels. Several governments across South and Southeast Asia have tightened blending mandates in recent years, creating contract volumes that are attractive to established domestic producers. Universal Biofuels' 18-plus years of operational history and existing OMC relationships position it as a near-term beneficiary of that policy momentum, though the company will face competition from new entrants if the 5% mandate creates sufficient volume to attract capital into greenfield capacity.

For Aemetis as a group, the India revenues complement a US-focused portfolio that includes a California dairy biogas network, a Central Valley ethanol plant, a planned SAF facility, and a CO2 sequestration project. Investors will look to the disclosure of any additional OMC allocation awards before year-end, progress on the IPO process, and the company's reported blending-mandate volumes as indicators of whether the India operation is on a credible growth trajectory.