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<br>Renewable diesel manufacturers utilization at 77%, greatest since July - AEGIS<br> |
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<br>[Biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) producers utilization [rate struck](https://www.zoominfo.com/c/mission-newenergy/346542889) 89% in Oct, greatest given that June 2023<br> |
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<br>Better credit rates, stronger diesel need stimulated greater activity - analyst<br> |
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<br>NEW YORK CITY, Jan 3 (Reuters) - U.S. renewable diesel and [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) manufacturers [increase](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) [operations](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) in October to multi-month highs, helped by stronger margins for the biofuels, according to information put together by advisory group AEGIS Hedging.<br> |
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<br>Renewable diesel producers utilized 77% of their total operable capability in October, the greatest since July 2024, the information showed. [Biodiesel](https://www.pinterest.com.au/missionnewenergy/) plant utilization increased to 89%, the greatest because June 2023.<br> |
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<br>Rising usage rates and improving margins are a welcome relief for the biofuels industry, after operators endured a rough start to 2024 as need growth slowed, leaving the market oversupplied and requiring a number of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) plant closures.<br> |
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<br>Both sustainable diesel and [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) are more expensive to produce than diesel, making suppliers depending on federal government rewards such as tax credits. Among the 2, eco-friendly diesel has become the favored fuel for providers, as it gains better rewards and can substitute diesel totally.<br> |
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<br>Total [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) production capability fell 4.2% year-over-year to about 2 billion [gallons](https://www.google.com/search?kgmid=/m/0cqd_rb) in October, according to information launched by the U.S. Energy Information Administration on Tuesday.<br> |
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<br>Renewable diesel output capability increased nearly 19% year-over-year to 4.58 billion in October, the EIA data revealed, as a lot of brand-new [biofuel](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) plants opened in the previous three years were tailored towards it.<br> |
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<br>Still, [oversupply pressed](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) [renewable diesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) output [capacity](https://forest500.org/rankings/companies/mission-newenergy-limited) 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](https://www.bloomberg.com/profile/company/MNELF:US) for the market in October was improved primarily by a surge in the worth of credits needed for compliance with federal [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) requireds, [stated Zander](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) Capozzola, vice [president](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) of renewable fuels at AEGIS.<br> |
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<br>D4 [Renewable Identification](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) Numbers, provided for [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) and eco-friendly diesel production, increased from a low of 56 cents each in September to over 71 cents in October, improving success for making the fuels, Capozzola stated.<br> |
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<br>Margins were also assisted by stronger demand for diesel, which struck a 1 year high in October, [raising](https://www.crunchbase.com/organization/mission-newenergy) prices for both the conventional fuel and its alternatives, he said.<br> |
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<br>Prices for credits under the Low Carbon Fuel Standard program of California, where most biofuels are consumed 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 everything rowing in the ideal direction in October," Capozzola stated. (Reporting by Shariq Khan in New York City |
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