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<br>Renewable diesel producers usage at 77%, greatest since July - AEGIS<br> |
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<br>[Biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) manufacturers usage rate hit 89% in Oct, highest considering that June 2023<br> |
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<br>Better credit prices, stronger diesel demand spurred higher activity - expert<br> |
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<br>NEW YORK CITY, Jan 3 (Reuters) - U.S. eco-friendly diesel and [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) producers ramped up [operations](https://www.businessnews.com.au/Company/Mission-NewEnergy) in October to multi-month highs, assisted by more powerful margins for the biofuels, according to information assembled by advisory group AEGIS Hedging.<br> |
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<br>Renewable diesel producers utilized 77% of their overall operable capacity in October, the greatest because July 2024, the information showed. plant utilization increased to 89%, the highest considering that June 2023.<br> |
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<br>[Rising utilization](https://www.pinterest.com.au/missionnewenergy/) rates and improving margins are a welcome relief for the biofuels industry, after operators sustained a rough start to 2024 as need growth slowed, leaving the [market oversupplied](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) and requiring a [variety](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) plant closures.<br> |
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<br>Both [sustainable diesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) and [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) are more expensive to produce than diesel, making suppliers dependent on government incentives such as tax credits. Among the 2, sustainable diesel has actually become the preferred fuel for suppliers, as it reaps much better incentives and can substitute diesel completely.<br> |
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<br>Total [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) production capacity fell 4.2% year-over-year to about 2 billion gallons in October, according to information [released](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) by the U.S. Energy Information Administration on Tuesday.<br> |
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<br>Renewable diesel output capacity rose nearly 19% year-over-year to 4.58 billion [gallons](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) 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 previous three years were tailored towards it.<br> |
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<br>Still, oversupply pushed sustainable diesel output capability 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 for the [industry](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) in October was increased generally by a rise in the value of credits needed for [compliance](https://forest500.org/rankings/companies/mission-newenergy-limited) with federal [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) requireds, said Zander Capozzola, vice president of sustainable fuels at AEGIS.<br> |
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<br>D4 Renewable Identification Numbers, provided for [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) and renewable diesel production, increased from a low of 56 cents each in September to over 71 cents in October, enhancing profitability for making the fuels, Capozzola stated.<br> |
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<br>Margins were likewise helped by more powerful demand for diesel, which hit an [one-year](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) high in October, raising rates for both the traditional fuel and its alternatives, he said.<br> |
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<br>Prices for [credits](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) under the [Low Carbon](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) 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 truly had everything rowing in the right direction in October," Capozzola said. (Reporting by Shariq Khan in New York |
