commit 9b146e1b342a9bad88f55de0dc8c27ed606a88a2 Author: marquitadubois Date: Sat Jan 11 13:53:57 2025 +0100 Add 'US Biofuel Producers Increase in Oct As Profitability Improved,' diff --git a/US-Biofuel-Producers-Increase-in-Oct-As-Profitability-Improved%2C.md b/US-Biofuel-Producers-Increase-in-Oct-As-Profitability-Improved%2C.md new file mode 100644 index 0000000..f376f8e --- /dev/null +++ b/US-Biofuel-Producers-Increase-in-Oct-As-Profitability-Improved%2C.md @@ -0,0 +1,15 @@ +
Renewable diesel producers utilization at 77%, greatest because July - AEGIS
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[Biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) producers utilization rate hit 89% in Oct, highest since June 2023
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Better credit costs, more powerful diesel demand stimulated greater activity - expert
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NEW YORK CITY, Jan 3 (Reuters) - U.S. sustainable diesel and [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) manufacturers ramped up operations in October to multi-month highs, helped by stronger margins for the biofuels, according to information assembled by advisory group AEGIS Hedging.
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Renewable diesel manufacturers used 77% of their overall operable capability in October, the greatest since July 2024, the data showed. [Biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) plant utilization rose to 89%, the highest given that June 2023.
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Rising utilization rates and enhancing margins are a welcome relief for the biofuels industry, after [operators endured](https://www.bloomberg.com/profile/company/MNELF:US) a [rough start](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) to 2024 as need development slowed, leaving the market oversupplied and requiring a variety of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) plant closures.
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Both renewable diesel and [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) are more expensive to produce than diesel, making suppliers dependent on federal government rewards such as [tax credits](https://www.crunchbase.com/organization/mission-newenergy). Among the 2, renewable diesel has actually become the preferred fuel for providers, as it reaps much better rewards and can replace diesel completely.
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Total [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) production capability fell 4.2% year-over-year to about 2 billion gallons in October, according to information [released](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) by the U.S. Energy Information Administration on Tuesday.
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Renewable diesel output capability [increased](https://www.businessnews.com.au/Company/Mission-NewEnergy) almost 19% year-over-year to 4.58 billion gallons in October, the EIA data showed, as many brand-new [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) plants opened in the previous three years were tailored towards it.
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Still, oversupply pressed sustainable diesel output capability 6% lower in October from a record 4.90 billion gallons in June.
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In addition to plant closures, [success](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) for the industry in October was improved mainly by a rise in the worth of credits needed for compliance with [federal biofuel](https://pitchbook.com/profiles/company/51278-86) requireds, said Zander Capozzola, vice president of [eco-friendly](https://www.pinterest.com.au/missionnewenergy/) fuels at AEGIS.
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D4 Renewable Identification Numbers, released for [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) and renewable diesel production, [increased](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) from a low of 56 cents each in September to over 71 cents in October, [enhancing profitability](https://www.businessnews.com.au/Company/Mission-NewEnergy) for making the fuels, Capozzola said.
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Margins were also assisted by [stronger](https://www.bloomberg.com/profile/company/MNELF:US) need for diesel, which hit a 1 year high in October, raising prices for both the standard fuel and its alternatives, he said.
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Prices for credits under the Low Carbon Fuel [Standard program](https://www.bloomberg.com/profile/company/MNELF:US) of California, where most [biofuels](https://pitchbook.com/profiles/company/51278-86) are consumed in the U.S., also from below 60 cents each in Sept to over 70 cents each in October, according to AEGIS.
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"You actually had everything rowing in the best instructions in October," Capozzola stated. (Reporting by Shariq Khan in New York \ No newline at end of file