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<br>Renewable diesel producers [utilization](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) at 77%, highest since July - AEGIS<br> |
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<br>[Biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) producers usage rate struck 89% in Oct, greatest because June 2023<br> |
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<br>Better credit prices, more powerful diesel need stimulated higher activity - expert<br> |
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<br>NEW YORK, Jan 3 (Reuters) - U.S. sustainable diesel and [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) manufacturers ramped up operations in October to multi-month highs, helped by stronger margins for the biofuels, according to data compiled by advisory group AEGIS Hedging.<br> |
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<br>Renewable diesel producers made use of 77% of their total operable capacity in October, the greatest since July 2024, the data revealed. [Biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) plant usage increased to 89%, the greatest given that June 2023.<br> |
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<br>[Rising usage](https://www.bloomberg.com/profile/company/MNELF:US) rates and enhancing 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 [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) plant closures.<br> |
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<br>Both eco-friendly diesel and [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) are more expensive to produce than diesel, making suppliers based on federal government [rewards](https://www.crunchbase.com/organization/mission-newenergy) such as tax [credits](https://www.pinterest.com.au/missionnewenergy/). Among the 2, renewable diesel has become the [favored](https://forest500.org/rankings/companies/mission-newenergy-limited) fuel for suppliers, as it gains better incentives and can replace diesel totally.<br> |
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<br>Total [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) production capability fell 4.2% year-over-year to about 2 billion [gallons](https://www.pinterest.com.au/missionnewenergy/) in October, according to [data 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 capability increased nearly 19% to 4.58 billion gallons in October, the EIA information showed, as the majority of brand-new [biofuel](https://www.pinterest.com.au/missionnewenergy/) plants opened in the previous 3 years were tailored towards it.<br> |
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<br>Still, oversupply pushed sustainable diesel output capacity 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 improved mainly by a rise in the worth of credits needed for compliance with federal [biofuel](https://stocktwits.com/symbol/MNEL) requireds, said Zander Capozzola, vice president of eco-friendly fuels at AEGIS.<br> |
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<br>D4 Renewable Identification Numbers, released for [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) and [eco-friendly diesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) production, increased from a low of 56 cents each in September to over 71 cents in October, enhancing success for making the fuels, [Capozzola](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) said.<br> |
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<br>Margins were likewise assisted by stronger demand for diesel, which hit a 1 year high in October, raising costs for both the traditional fuel and its alternatives, he said.<br> |
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<br>Prices for credits under the [Low Carbon](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) Fuel Standard program of California, where most [biofuels](https://www.bloomberg.com/profile/company/MNELF:US) are [consumed](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) 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 actually had whatever rowing in the right direction in October," Capozzola said. (Reporting by Shariq Khan in New York |
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