Multiple Tenders From OMCs Expected Again for 2025 Biodiesel Supply on Cost-plus Basis
CUPERTINO, CA, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on low and negative carbon intensity products, today announced that the Universal Biofuels subsidiary of Aemetis in India successfully completed delivery of $103 million of biodiesel to the three government-owned Oil Marketing Companies (OMCs) under cost-plus supply agreements for the one-year marketing period ending September 30, 2024.
Aemetis recently received an initial $58 million of new allocations from OMCs for biodiesel supply in the current marketing year ending September 30, 2025, and has been producing biodiesel for deliveries scheduled to begin this month. The first allocation of biodiesel deliveries for the current year was issued by the OMCs in late November 2024 and the pricing for the deliveries will be based on a cost-plus pricing formula. Multiple tenders were issued by OMCs during the last supply year ending September 30, 2024, and multiple tenders are expected again in the current year.
During a recent biodiesel plant upgrade and maintenance cycle, Universal Biofuels significantly expanded the production capacity of its proprietary process that produces biodiesel from waste and byproducts that Universal utilizes to produce biofuels that are lower carbon intensity and have a significantly reduced cost.
“Universal Biofuels has now successfully completed deliveries under the third set of cost-plus contracts with OMCs, highlighting our track record for producing high quality renewable fuels to support the India National Biofuels Policy goal of a 5% blend of biodiesel,” stated Eric McAfee, Chairman and CEO of Aemetis. “The recent capacity expansion of our proprietary biodiesel production process increases our profitability per gallon and supports the IPO process for Universal Biofuels that is currently under way.”
Currently, India blends biodiesel at about a 1% ratio into petroleum diesel. The cost-plus contract used by OMCs to purchase biodiesel has attracted new investment and capacity expansion to meet a projected $5 billion biodiesel market, expanding from 250 MGY to 1.25 billion gallons of biodiesel per year.
About Aemetis
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the operation, acquisition, development, and commercialization of innovative technologies that replace petroleum-based 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 for customers in India and Europe. Aemetis is developing a sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in California to utilize renewable hydrogen, hydroelectric power, and renewable oils to produce low carbon intensity renewable jet and diesel fuel. 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 in 2024 and future years; statements relating to the development, engineering, financing, construction and operation of the Aemetis ethanol, biodiesel, biogas, SAF and renewable diesel, and carbon sequestration facilities; and our ability to promote, develop and deploy technologies to produce renewable fuels and biochemicals. 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.
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