Aemetis Shares Rise After Securing $17 Million Biodiesel Deal in India

Shares of Aemetis, Inc. (NASDAQ: AMTX) rose 4.3% in trading on Tuesday after the company announced its subsidiary in India secured significant contracts to supply biodiesel. The deals are collectively valued at approximately $17 million.

Contract Details

According to the announcement, Aemetis's Universal Biofuels unit will deliver more than 18 million liters of biodiesel over a three-month period. The fuel will be supplied to three of India’s government-owned Oil Marketing Companies (OMCs).

Aemetis stated that it anticipates additional supply orders from the OMCs before the end of 2026. The company also noted that Universal Biofuels continues to supply distilled biodiesel to private commercial customers in the region.

Strategic Importance and Market Context

The supply agreements align with India’s National Policy on Biofuels, which aims to expand the country's use of renewable energy. The policy has a target to increase the national biodiesel blending rate from the current 1% to 5% by 2030, signaling a potentially expanding market for producers.

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Universal Biofuels operates one of the largest biodiesel production facilities in India, located in Kakinada. The plant has an annual production capacity of approximately 80 million gallons and has been in operation for over 18 years.

Future Plans and Potential IPO

Aemetis also outlined future growth initiatives for its Indian operations. The company is exploring expansion to other locations within India and diversification into other renewable products, including dairy biogas, ethanol, and sustainable aviation fuel (SAF).

Furthermore, Aemetis confirmed that Universal Biofuels is preparing for a potential Initial Public Offering (IPO) on an Indian stock exchange. The plan, which is subject to market conditions, would involve selling a minority equity stake to public investors to fund further growth.