Universal Biofuels secures $24 million biodiesel supply from OMCs

California based bioenergy major Aemetis Inc. has announced that its Universal Biofuels subsidiary in India secured allocations of approximately $24 million for the supply of more than 27 million liters of biodiesel. The company will deliver biodiesel to India’s three government-owned Oil Marketing Companies (OMCs) for the period ending March 2026.

Additional OMC fuel supply orders are expected throughout the year to support the India government’s goal of increasing from a 1% biodiesel blend to a targeted 5%, as stated in the current India National Policy on Biofuels.

“Universal Biofuels and other biodiesel producers look forward to continuous support from the government of India to build and expand a healthy biodiesel industry,” stated Sanjeev Duggal, CEO of Universal Biofuels.

“In the past five years, India rapidly grew from about a 1% blend to a 20% blend of ethanol into gasoline. The India government’s 5% biodiesel blending target of more than 1.2 billion gallons per year requires rapid expansion of biodiesel blending from the current levels of less about 1% biodiesel blending,” stated Eric McAfee, Chairman and CEO of Aemetis.

He added, “Our Universal Biofuels subsidiary has a long and successful track record of producing and delivering high-quality renewable fuels and pharma-grade glycerin from our India plant.”

Universal Biofuels

The Universal Biofuels subsidiary of Aemetis is one of the largest biodiesel producers in India and has been in operation for more than 17 years. Universal Biofuels has significantly expanded the production capacity of its Kakinada biodiesel plant to 80 million gallons per year, including expansion of its proprietary enzymatic process to produce lower carbon-intensity biodiesel at reduced cost.

Universal Biofuels is exploring opportunities to expand to other locations throughout India, including diversification into the production of other renewable fuels such as dairy biogas, ethanol, and sustainable aviation fuel.

To support this growth, Universal Biofuels is preparing to undertake an Initial Public Offering (IPO) for a sale of a minority equity stake to public investors on the India stock exchange, subject to continued favorable market conditions.