View source for US Biofuel Producers Increase In Oct As Profitability Improved

<br>Renewable diesel [https://pitchbook.com/profiles/company/51278-86 producers] usage at 77%, highest because July - AEGIS<br><br><br>[https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html Biodiesel] producers utilization rate hit 89% in Oct, highest since June 2023<br><br><br>Better credit costs, stronger diesel demand stimulated greater activity - analyst<br><br><br>NEW YORK, Jan 3 (Reuters) - U.S. [https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/ renewable] diesel and [https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd biodiesel] manufacturers increase operations in October to multi-month highs, helped by stronger margins for the biofuels, according to information compiled by advisory group [https://www.energy-xprt.com/companies/mission-newenergy-limited-36048 AEGIS Hedging].<br><br><br>Renewable diesel producers made use of 77% of their overall operable capability in October, the highest considering that July 2024, the information showed. [https://www.bloomberg.com/profile/company/MNELF:US Biodiesel] plant utilization rose to 89%, the greatest because June 2023.<br><br><br>Rising usage rates and improving margins are a welcome relief for the biofuels industry, after operators withstood a rough start to 2024 as demand growth slowed, leaving the market oversupplied and requiring a number of [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 biodiesel] plant closures.<br><br><br>Both renewable diesel and [https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html biodiesel] are more pricey to produce than diesel, making suppliers depending on federal [https://www.pinterest.com.au/missionnewenergy/ government rewards] such as tax credits. Among the 2, [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 eco-friendly] diesel has actually become the favored fuel for providers, as it reaps much better rewards and can replace diesel completely.<br><br><br>Total [https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/ biodiesel] production capacity fell 4.2% year-over-year to about 2 billion [https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/ gallons] in October, according to information launched by the U.S. Energy Information Administration on Tuesday.<br><br><br> output capability rose nearly 19% [https://forest500.org/rankings/companies/mission-newenergy-limited year-over-year] to 4.58 billion gallons in October, the EIA information revealed, as many brand-new [https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm biofuel] plants opened in the previous 3 years were tailored towards it.<br><br><br>Still, oversupply pushed eco-friendly diesel output capability 6% lower in October from a record 4.90 billion gallons in June.<br><br><br>In addition to plant closures, success for the industry in October was enhanced primarily by a rise in the worth of credits required for compliance with [https://www.pinterest.com.au/missionnewenergy/ federal biofuel] mandates, said Zander Capozzola, vice president of sustainable fuels at AEGIS.<br><br><br>D4 Renewable Identification Numbers, issued for [https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm biodiesel] and [https://www.google.com/search?kgmid=/m/0cqd_rb eco-friendly diesel] production, rose from a low of 56 cents each in September to over 71 cents in October, enhancing profitability for making the fuels, [https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm Capozzola stated].<br><br><br>[https://www.zoominfo.com/c/mission-newenergy/346542889 Margins] were also assisted by stronger need for diesel, which hit an one-year high in October, raising rates for both the traditional fuel and its options, he said.<br><br><br>Prices for credits under the Low Carbon Fuel Standard program of California, where most biofuels are consumed in the U.S., likewise [https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm increased] from below 60 cents each in Sept to over 70 cents each in October, according to AEGIS.<br><br><br>"You really had everything rowing in the right instructions in October," Capozzola stated. (Reporting by Shariq Khan in New York; [https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd Editing] by David Gregorio)<br>