Aemetis Inc.'s subsidiary, Universal Biofuels, has been awarded a contract to supply approximately $150 million worth of biodiesel to three government-controlled oil marketing companies in India. The contract will span a one-year period, starting this month.

According to Aemetis, the total volume of biodiesel to be supplied will amount to around 40 million gallons.

India's Prime Minister, Narendra Modi, has been an advocate for renewable fuels and recently launched the Global Biofuel Alliance during the G20 meeting. These new policies have contributed to an increased demand for biodiesel in India. To meet the country's goal of a 5% minimum blend by 2030, an additional 1 billion gallons of biodiesel production per year are required. Aemetis is committed to expanding its capacity to fulfill this growing demand.

Currently, the oil marketing companies provide approximately 70% of the 25 billion gallon diesel market in India, with private oil refiners supplying the remaining 30%. The 2022 Amendment to India's National Policy on Biofuels aims to increase the domestic production and consumption of biodiesel. It sets a target of a 5% minimum blend of biodiesel by 2030, surpassing the current 1% blend. Importation of biodiesel is prohibited under the National Policy.

Universal Biofuels operates a biodiesel plant near the Port of Kakinada on India's East Coast, with a capacity of 60 million gallons per year.

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