December 19, 2007 (Biofuel Review) – AE Biofuels (OTCBB: AEBF) has completed the construction of a 50 million gallons per year biodiesel facility located in Kakinada, India. The company has also announced that it has commenced the construction of a glycerin refinery adjacent to the biodiesel facility. The additional refining processes will, says the company, significantly increase the value of the glycerin by-product to be sold into Indian markets.The plant is connected to the Port of Kakinada, on the east coast of India, by pipeline, and has Export Oriented Unit status, thus benefiting from tax-free imports and other tax benefits. The plant is 74% owned by AE Biofuels and is 26% owned by one of the world’s largest palm oil suppliers, and a Singapore palm trading company.
The company’s expansion at Kakinada will upgrade the current glycerin refining process, enabling it to produce, sell, and market pharmaceutical grade glycerin in India. Refined glycerin currently sells at up to an 80% premium over crude glycerin in the Indian market.
“Our investment in the glycerin refinement process in India will allow us to produce a valuable commodity that is in strong demand,” said Eric McAfee, chairman and CEO of AE Biofuels, Inc. “Our Indian plant supplies growing local and global markets for biodiesel in order to meet expanding mandates, while benefiting from rising prices to meet expanding demand for premium-quality pharmaceutical grade glycerin.”