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<br>Renewable diesel producers usage at 77%, highest considering that July - AEGIS<br> |
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<br>[Biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) manufacturers usage rate struck 89% in Oct, greatest because June 2023<br> |
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<br>Better credit prices, stronger diesel demand [spurred](https://www.bloomberg.com/profile/company/MNELF:US) greater [activity -](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) expert<br> |
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<br>NEW YORK CITY, Jan 3 (Reuters) - U.S. renewable diesel and [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) manufacturers ramped up operations in October to multi-month highs, assisted by more powerful margins for the biofuels, according to information put together by advisory group AEGIS Hedging.<br> |
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<br>Renewable diesel producers used 77% of their total operable capability in October, the highest considering that July 2024, the data revealed. [Biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) plant usage rose to 89%, the highest considering that June 2023.<br> |
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<br>[Rising utilization](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) rates and enhancing margins are a welcome relief for the biofuels industry, after [operators sustained](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) a rough start to 2024 as need development slowed, leaving the marketplace oversupplied and requiring a number of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) plant closures.<br> |
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<br>Both renewable diesel and [biodiesel](https://stocktwits.com/symbol/MNEL) are more costly to produce than diesel, making providers reliant on government [incentives](https://pitchbook.com/profiles/company/51278-86) such as tax credits. Among the 2, renewable diesel has actually become the favored fuel for suppliers, as it reaps much better rewards and can replace diesel entirely.<br> |
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<br>Total biodiesel production capacity fell 4.2% year-over-year to about 2 billion gallons in October, according to [data released](https://forest500.org/rankings/companies/mission-newenergy-limited) by the U.S. Energy Information Administration on Tuesday.<br> |
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<br>Renewable diesel output capacity increased almost 19% year-over-year to 4.58 billion gallons in October, the EIA information revealed, as most new [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) plants opened in the past 3 years were tailored towards it.<br> |
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<br>Still, oversupply pushed sustainable diesel output capacity 6% lower in October from a record 4.90 billion gallons in June.<br> |
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<br>In addition to plant closures, profitability for the industry in October was increased mainly by a surge in the value of credits required for compliance with [federal](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) mandates, said Zander Capozzola, [vice president](https://stocktwits.com/symbol/MNEL) of [eco-friendly](https://pitchbook.com/profiles/company/51278-86) fuels at AEGIS.<br> |
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<br>D4 Renewable Identification Numbers, provided for [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) and [eco-friendly diesel](https://forest500.org/rankings/companies/mission-newenergy-limited) production, from a low of 56 cents each in September to over 71 cents in October, improving success for making the fuels, [Capozzola](https://www.crunchbase.com/organization/mission-newenergy) said.<br> |
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<br>Margins were likewise helped by more powerful need for diesel, which struck an one-year high in October, raising prices for both the conventional fuel and its alternatives, he stated.<br> |
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<br>Prices for credits under the Low Carbon Fuel Standard program of California, where most biofuels are [consumed](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in the U.S., also increased from below 60 cents each in Sept to over 70 cents each in October, according to AEGIS.<br> |
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<br>"You really had whatever rowing in the best direction in October," [Capozzola](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) said. (Reporting by Shariq Khan in New York City |
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