Cupertino, California-based advanced renewable fuels, and biochemicals company Aemetis announced both increased earnings and production numbers for the second quarter of 2017 while signaling a future boost to its cellulosic ethanol output.
Aemetis, which owns facilities in California and India, posted earnings of $40.8 million in the second quarter of 2017, a 23pc rise YoY. The company cited increased bulk sales to Indian customers as well as higher ethanol and distiller’s grains volumes as the main reasons for the higher revenue.
The biggest product growth came from biodiesel, where production shot up by over 290pc from Q2 2016 to Q2 2017. This was also accompanied by a 27pc increase in the average sales price of biodiesel. The total volume of ethanol sold also increased YoY by 16pc, but ethanol revenues were smaller at 11pc as the average sales price decreased slightly by 1.6pc YoY.
As Chairman and CEO Eric McAfee of Aemetis noted, Q2 2017 also brought a new three-year biofuels supply agreement between BP Singapore and Aemetis, where biodiesel will be shipped from the Aemetis Indian plant to the US and Europe. A $6 million contract granted by the India Oil Marketing Companies was also responsible for increased revenue and gross margins generated by its Indian facility.
McAfee also foreshadowed future growth by adding that “during the third quarter , we also started production of cellulosic ethanol from waste orchard wood and nutshells at our newly constructed integrated demonstration unit at the InEnTec Technology Center in Richland, Washington.” The Aemetis Indian plant also started producing biodiesel using the company’s “patent-pending enzymatic technology” in Q3 2017.