Aemetis introduced that its Common Biofuels subsidiary in India, proprietor and operator of a biodiesel plant positioned close to the Port of Kakinada on India’s east coast, was chosen by the three government-controlled oil advertising corporations (OMCs) and a serious oil refiner to produce roughly 8,000,000 gallons of biodiesel over the subsequent two months.
The mixed revenues from the shipments are anticipated to be about $41 million and are scheduled to require the Aemetis biodiesel/glycerin manufacturing plant to function close to 100% capability. The Kakinada Plant has an put in capability of 150 thousand metric tons per 12 months, or about 50 million gallons of biodiesel manufacturing per 12 months.
Aemetis Kakinada biodiesel plant
About 70% of the diesel and gasoline in India is equipped by the OMCs, with the remaining gasoline equipped by giant non-government refineries. This quantity of biodiesel to be equipped by Aemetis is predicted to proceed to happen in two-month bidding tenders on an ongoing foundation to satisfy the necessities of the just lately up to date India Nationwide Biofuels Coverage.
The full quantity tendered by the India OMCs was roughly 360 million gallons for the two-month supply interval, which equals greater than 2 billion gallons of ongoing biodiesel demand on an annual foundation from the OMCs.
Moreover, with restricted home biodiesel manufacturing capability to satisfy the objectives of the India Nationwide Biofuels Coverage, the non-public oil refineries in India have actively moved ahead with biodiesel purchases and have begun to develop long-term biodiesel provide relationships. As one in every of India’s largest home biodiesel producers, Aemetis Common Biofuels is effectively positioned to assist meet this rising home demand.
India consumes about 25 billion gallons of petroleum diesel annually. A 5% minimal mix of biodiesel was adopted as a aim below the 2022 Nationwide Biofuels Coverage to scale back the importation of crude oil into India. The biofuels coverage seeks to enhance the surroundings by means of decrease air air pollution from diesel automobiles and an improved economic system by rising the home manufacturing of biodiesel feedstocks.
Biodiesel feedstocks embrace renewable oils which are byproducts from meals manufacturing, which may decrease the general price of meals and enhance the surroundings by creating new markets for these byproducts.
The non-OMC refinery buy order is straight away in impact and biodiesel deliveries are scheduled to start in early September. The OMCs are within the course of of ultimate documentation and product testing earlier than deliveries are anticipated to start in September. The Aemetis Common Biofuels biodiesel pattern efficiently exceeded the specs within the first impartial take a look at for biodiesel high quality that was required by the OMC buy order course of.