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<br>Renewable diesel [producers usage](https://www.google.com/search?kgmid=/m/0cqd_rb) at 77%, greatest considering that July - AEGIS<br> |
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<br>Biodiesel manufacturers utilization rate struck 89% in Oct, greatest since June 2023<br> |
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<br>Better credit prices, more powerful diesel need spurred higher [activity -](https://pitchbook.com/profiles/company/51278-86) expert<br> |
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<br>NEW YORK CITY, Jan 3 (Reuters) - U.S. sustainable diesel and [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) producers ramped up operations in October to multi-month highs, assisted by more powerful margins for the biofuels, according to information compiled by advisory group AEGIS Hedging.<br> |
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<br>Renewable diesel manufacturers used 77% of their overall operable capacity in October, the highest since July 2024, the data showed. Biodiesel plant usage increased to 89%, the greatest considering that June 2023.<br> |
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<br>Rising utilization rates and [enhancing margins](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) are a welcome relief for the biofuels market, after [operators withstood](https://pitchbook.com/profiles/company/51278-86) a rough start to 2024 as need growth slowed, leaving the market oversupplied and forcing a variety of [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) plant closures.<br> |
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<br>Both [sustainable diesel](https://www.crunchbase.com/organization/mission-newenergy) and biodiesel are more pricey to produce than diesel, making [providers depending](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) on [government](https://www.google.com/search?kgmid=/m/0cqd_rb) incentives such as tax credits. Among the 2, sustainable diesel has become the favored fuel for providers, as it reaps better [incentives](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and can replace diesel completely.<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 information [released](https://www.zoominfo.com/c/mission-newenergy/346542889) by the U.S. Energy Information Administration on Tuesday.<br> |
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<br>Renewable diesel output capacity increased nearly 19% year-over-year to 4.58 billion gallons in October, the EIA data revealed, as many 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 past three years were geared towards it.<br> |
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<br>Still, sustainable diesel [output capacity](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) 6% lower in October from a record 4.90 billion [gallons](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) in June.<br> |
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<br>In addition to plant closures, success for the industry in October was [improved](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) primarily by a rise in the value of credits required for compliance with federal [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) requireds, said Zander Capozzola, vice president of sustainable fuels at AEGIS.<br> |
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<br>D4 Renewable Identification Numbers, released for biodiesel and [renewable diesel](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) production, rose from a low of 56 cents each in September to over 71 cents in October, enhancing profitability for making the fuels, Capozzola said.<br> |
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<br>[Margins](https://forest500.org/rankings/companies/mission-newenergy-limited) were likewise assisted by more [powerful demand](https://www.zoominfo.com/c/mission-newenergy/346542889) for diesel, which struck a 1 year high in October, raising costs for both the [standard](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) fuel and its options, 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](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) in the U.S., likewise rose from listed 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 right direction in October," Capozzola stated. (Reporting by Shariq Khan in New York |
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