Expected 10 million gallons per year is approximately 20% of biodiesel plant capacity
CUPERTINO, CA, March 16, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels subsidiary located in the Andhra Pradesh state of India was selected by the Andhra Pradesh State Road Transport Corp. (“APSRTC”) to supply approximately 800,000 gallons per month of biodiesel to fuel public transport buses in the region. The arrangement is expected to be ongoing to meet the needs of APSRTC. The State of Andhra Pradesh has a population of 84 million people, including approximately 28,000 villages.
“After an initial ramp up period, revenues from the APSRTC supply agreement are expected to be about 20% of our plant capacity generating $36 million per year including glycerin byproducts, for a total of $180 million under the recently announced Aemetis Five Year Plan,” stated Eric McAfee, Chairman and CEO of Aemetis. “We built our 50 million gallon per year capacity biodiesel plant in the port city of Kakinada in the State of Andhra Pradesh on the East Coast of India to convert waste from the edible oil industry into high quality biodiesel. The selection of Universal Biofuels to supply APSRTC is the result of many years of reliably producing a high quality product and building our reputation as a proven large scale producer.”
Currently, APSRTC operates 11,522 buses with 423 bus stations, 128 depots and 692 bus shelters. The Corporation's buses connect villages to all major towns and cities in the State of Andhra Pradesh, as well as cities in the neighboring States of Tamilnadu, Karnataka, Odisha, and Telangana.
In 1999, APSRTC entered the Guinness Book of World Records for owning the largest fleet of buses in the world. The supply agreement was arranged after the Aemetis plant was evaluated and approved for quality and production capacity by the APSRTC Head of Engineering.
The Aemetis Corporate Presentation is posted on the Investors section of the Aemetis website at http://www.aemetis.com/investors/presentation/.
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and bioproducts company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas (RNG). Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero biorefinery in Riverbank, California to convert renewable hydrogen from waste orchard wood and renewable electricity from solar and hydroelectric sources combined with non-edible oils into renewable jet fuel and renewable diesel, while pre-extracting cellulosic sugars for use by the Keyes ethanol plant to produce cellulosic ethanol. Aemetis holds a portfolio of patents and related technology licenses for the production of renewable fuels and bioproducts. For additional information about Aemetis, please visit www.aemetis.com.
Safe Harbor Statement
This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the production or effectiveness of the India production facility, the ability to supply product under this arrangement, and the continuance of governmental mandates and supply contracts for biodiesel. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue,” “enable” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission (the “SEC”), including the Aemetis Annual Report on Form 10-K for the year ended December 31, 2020, and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.
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