Aemetis India Plant Receives Government Approval to Resume Biodiesel Production

Aemetis, a renewable fuels company operating in the United States and India, has received official approval to restart biodiesel production at its India plant, marking a significant milestone in the country's renewable energy landscape. The local Pollution Control Board granted permission on February 22, 2025, allowing Universal Biofuels, an Aemetis subsidiary, to resume operations at its 80 million gallon per year facility in Kakinada, Andhra Pradesh.

The restart comes at a critical juncture for India's renewable energy sector, where the massive 25 billion gallon annual petroleum diesel market presents substantial environmental challenges. Current national policy supports a 5% biodiesel blend to mitigate air pollution and create new markets for agricultural and waste products, though implementation remains limited at approximately 1%.

Universal Biofuels, with over 17 years of operational experience, has already secured $58 million in allocations for 2025 delivery from government-owned oil marketing companies. The company expects to commence biodiesel shipments in March, leveraging its expanded production capacity to address the growing national demand for sustainable fuel alternatives.

Company leadership sees significant potential for growth, with plans to potentially expand production capacity to over 200 million gallons annually. This expansion could be funded through a planned initial public offering of the Universal Biofuels subsidiary, which would help meet the estimated 1.2 billion gallon annual biodiesel demand.

A key strategy for this growth involves securing renewable oil feedstocks, potentially including imported agricultural products like soybeans from the United States. The company is closely monitoring potential policy developments that could support feedstock imports and facilitate increased renewable fuel production.

The plant's restart represents more than a business milestone; it signifies a crucial step in India's broader environmental transition. By supporting the displacement of petroleum-based diesel with renewable alternatives, Aemetis contributes to reducing greenhouse gas emissions and addressing critical air quality concerns in the region.