California-based Aemetis, Inc. will start selling biodiesel to travel bus operators in India’s tourism industry. This company news release says a move by India government that allows biodiesel manufacturers such as Aemetis to sell to customers directly helped make the deal possible.
According to a study carried out by Nielsen Research for the Department of Petroleum Planning and Analysis, Ministry of Petroleum and Natural Gas, Government of India, buses consume about 10% of the annual diesel used. Diesel use by buses equates to 2.5 billion gallons of yearly consumption in India, of which more than 1 billion gallons is consumed in Southern and Western India providing a potential source of significant demand for the Aemetis biodiesel plant in Andhra Pradesh.
“Prime Minister Modi and the India Government are actively promoting biodiesel as an alternative to petroleum diesel to reduce more than $120 billion per year of crude oil imports,” said Eric McAfee, Chairman and Chief Executive Officer of Aemetis. “The lower cost of biodiesel compared to diesel is only one of several important drivers for the growth in the biodiesel market. By using biodiesel from Aemetis, travel operators are supporting improved air quality, expanded domestic jobs and reduced operating costs.”
“We have recently begun deliveries to travel bus operators in Southern and Western India,” said Sanjeev Gupta, Managing Director of the Universal Biofuels subsidiary of Aemetis. “The travel and tourism industry contributed about 6.2% of India’s GDP in 2013 and is forecasted to rise by 7% per year through 2024. The travel and tourism industry supports about 22 million jobs and helps India generate meaningful foreign exchange reserves.”
Aemetis owns and operates a biodiesel refinery able to produce about 50 million gallons per year on the East Coast of India.