Aemetis subsidiary upgrades capacity expansion to 50M biodiesel gallons per year
Aemetis announced that its Universal Biofuels subsidiary has completed a two-year upgrade of the Kakinada, India biodiesel and glycerin plant. The upgrades to the Kakinada plant included installation of a pre-treatment unit to process lower-cost and waste feedstock into oil; expansion of boiler and other utility capacities and implementation of environmental systems to enable full production of 50M gallons per year of biodiesel and bio-oil while simultaneously operating the biodiesel, pretreatment and glycerin refining units. The 2018 India National Policy on Biofuels issued by the Indian Government increased the target for domestic biodiesel consumption to 5% of the approximately 25B gallons of petroleum diesel consumed in India each year from currently less than a 1% biodiesel blend. In mid-2018, the Goods & Services Tax on biodiesel was reduced from 18% to 12% to support expansion of biodiesel. In late 2018, the India Supreme Court determined that biodiesel may be sold at retail fueling stations, significantly expanding the market for biodiesel in India. The India government has recently issued a purchase requisition for approximately 260M gallons of biodiesel for year 2019 to be supplied by domestic India biodiesel producers.