Aemetis India Completes $103 Million of Biodiesel Deliveries to OMCs in 2024 and Receives Initial $58 Million Allocation for the 2025 Marketing Year

Rhea-AI Summary

Aemetis announced its Universal Biofuels subsidiary in India has completed $103 million of biodiesel deliveries to government-owned Oil Marketing Companies (OMCs) for the marketing period ending September 30, 2024. The company received an initial $58 million allocation for the 2025 marketing year, with deliveries scheduled to begin December 2024. During a recent plant upgrade, Universal Biofuels expanded its proprietary process capacity for producing lower carbon intensity biodiesel from waste and byproducts. The cost-plus pricing model used by OMCs is expected to support India's National Biofuels Policy goal of achieving a 5% biodiesel blend, up from the current 1% blend ratio.

Positive

• Completed $103 million in biodiesel deliveries for 2024
• Secured new $58 million allocation for 2025
• Expanded production capacity through plant upgrade
• Operating under cost-plus pricing contracts with OMCs
• Supporting IPO process for Universal Biofuels subsidiary

Negative

• None.

Insights

Financial Analyst

The successful completion of $103 million in biodiesel deliveries and new $58 million allocation represents significant revenue visibility for Aemetis. The cost-plus pricing model provides stable margins and reduces market risk. The company's proprietary process upgrade for lower-cost feedstock processing should enhance profit margins, while the planned IPO of Universal Biofuels could unlock shareholder value.

India's biodiesel market expansion from 250 MGY to 1.25 billion gallons presents a $5 billion market opportunity. With established OMC relationships and expanded capacity, Aemetis is well-positioned to capture market share as India progresses from 1% to 5% biodiesel blending targets. The government mandate and cost-plus contracts create a favorable environment for sustained growth.

Market Research Analyst

The Indian biodiesel market dynamics present a compelling growth story. The government's commitment to increase blending from 1% to 5% implies a 5x market expansion. The cost-plus contract structure is attracting new investments, indicating market maturation. Aemetis' established presence, proven delivery track record and proprietary technology improvements position it favorably against potential new entrants.

The planned Universal Biofuels IPO could benefit from current market conditions, as investors seek exposure to India's growing renewable energy sector. The combination of government support, guaranteed pricing and market expansion creates an attractive investment narrative.

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.

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

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

FAQ

How much biodiesel did Aemetis (AMTX) deliver to Indian OMCs in 2024?

Aemetis delivered $103 million worth of biodiesel to Indian Oil Marketing Companies (OMCs) for the marketing period ending September 30, 2024.

What is the new biodiesel allocation for Aemetis (AMTX) in 2025?

Aemetis received an initial allocation of $58 million from OMCs for biodiesel supply in the marketing year ending September 30, 2025.

What is India's current biodiesel blend ratio according to Aemetis (AMTX)?

According to the press release, India currently blends biodiesel at about a 1% ratio into petroleum diesel, with a national policy goal of reaching 5%.

What improvements did Aemetis (AMTX) make to its Universal Biofuels facility?

Aemetis expanded the production capacity of its proprietary process that produces lower carbon intensity biodiesel from waste and byproducts during a recent plant upgrade and maintenance cycle.