Aemetis Inc. (NASDAQ: AMTX) announced that its Universal Biofuels subsidiary in India has secured a $24 million allocation to supply more than 27 million liters of biodiesel to three government‑owned Oil Marketing Companies (OMCs) for the period ending March 2026. The contract is a key milestone for the company’s Indian operations, which have been expanding production capacity to meet the country’s growing biodiesel blending mandate.
The deal covers the expanded Kakinada plant, which now has a capacity of 80 million gallons per year. By locking in this supply, Aemetis gains a steady revenue stream that will help offset liquidity pressures and support capital projects such as the Mechanical Vapor Recompression system and renewable natural gas expansion. The contract also positions the company to capture a larger share of India’s biodiesel market as the government targets a 5 % blend by 2026, a target that has been reinforced by recent policy updates.
While the $24 million allocation is a positive development for the Indian segment, it comes against a backdrop of broader financial challenges. Aemetis has reported declining revenues in recent quarters—$42.9 million in Q1 2025 versus $72.6 million in Q1 2024—and negative EBITDA of $42.5 million over the last twelve months. The company is actively pursuing financing and awaiting clarification on the Section 45Z tax credit to support future projects. The new contract therefore represents a meaningful cash‑flow boost, but it does not fully resolve the company’s liquidity concerns.
The Kakinada plant’s expansion to 80 million gallons per year is central to the company’s strategy. It allows Universal Biofuels to meet the current and projected demand from OMCs, and it provides the scale needed to achieve cost efficiencies. Management has highlighted that the plant’s increased capacity will enable the company to capture a larger share of the biodiesel market as India’s blending targets tighten. CEO Eric McAfee noted that the company’s “long and successful track record” in India positions it well to capitalize on the country’s growing biofuel market.
The deal also underscores the importance of government policy in driving demand. India’s National Policy on Biofuels has set a 5 % biodiesel blend target for 2026, and the government’s continued support is a key tailwind for Aemetis. However, feedstock scarcity remains a headwind, as the biodiesel sector faces challenges in securing sufficient fats, oils, and greases. The company’s ability to secure reliable feedstock will be critical to sustaining growth in the coming years.
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