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<br>Renewable diesel producers [utilization](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) at 77%, highest given that July - AEGIS<br> |
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<br>[Biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) producers usage rate struck 89% in Oct, highest because June 2023<br> |
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<br>Better credit costs, more [powerful diesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) demand spurred higher expert<br> |
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<br>NEW YORK CITY, Jan 3 (Reuters) - U.S. [renewable](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) diesel and biodiesel producers increase [operations](https://pitchbook.com/profiles/company/51278-86) in October to multi-month highs, assisted by stronger margins for the biofuels, according to information assembled by advisory group AEGIS Hedging.<br> |
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<br>[Renewable](https://www.zoominfo.com/c/mission-newenergy/346542889) diesel [producers](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) used 77% of their overall operable capability in October, the highest considering that July 2024, the information showed. Biodiesel plant utilization increased to 89%, the highest considering that June 2023.<br> |
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<br>Rising utilization rates and enhancing [margins](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) are a welcome relief for the biofuels industry, after [operators sustained](https://forest500.org/rankings/companies/mission-newenergy-limited) a [rough start](https://www.google.com/search?kgmid=/m/0cqd_rb) to 2024 as demand development slowed, leaving the market oversupplied and requiring a variety of biodiesel plant closures.<br> |
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<br>Both sustainable diesel and [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) are more costly to produce than diesel, making providers reliant on federal government incentives such as tax credits. Among the 2, sustainable diesel has actually emerged as the [preferred fuel](https://www.crunchbase.com/organization/mission-newenergy) for providers, as it enjoys much better rewards and can substitute diesel totally.<br> |
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<br>Total biodiesel production capability fell 4.2% year-over-year to about 2 billion gallons in October, according to data launched 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 most new [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) plants opened in the previous three years were tailored towards it.<br> |
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<br>Still, oversupply pressed renewable diesel output [capacity](https://www.bloomberg.com/profile/company/MNELF:US) 6% lower in October from a record 4.90 billion gallons in June.<br> |
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<br>In addition to plant closures, success for the industry in October was enhanced primarily by a surge in the value of credits needed for compliance with federal [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) requireds, said Zander Capozzola, [vice president](https://pitchbook.com/profiles/company/51278-86) of [renewable](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) fuels at AEGIS.<br> |
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<br>D4 Renewable Identification Numbers, provided for [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) and eco-friendly diesel production, increased from a low of 56 cents each in September to over 71 cents in October, enhancing success for making the fuels, Capozzola said.<br> |
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<br>[Margins](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) were also helped by [stronger demand](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) for diesel, which hit a 1 year high in October, raising prices for both the conventional 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](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) are consumed in the U.S., also increased 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 truly had everything rowing in the right instructions in October," Capozzola said. (Reporting by Shariq Khan in New York |
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