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<br>Renewable diesel [producers](https://www.google.com/search?kgmid=/m/0cqd_rb) usage at 77%, greatest since July - AEGIS<br> |
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<br>[Biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) producers utilization [rate hit](https://www.bloomberg.com/profile/company/MNELF:US) 89% in Oct, greatest since June 2023<br> |
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<br>Better credit costs, more [powerful diesel](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) need spurred higher activity - expert<br> |
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<br>NEW YORK, Jan 3 (Reuters) - U.S. sustainable diesel and biodiesel producers ramped up [operations](https://www.crunchbase.com/organization/mission-newenergy) in October to multi-month highs, [assisted](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) by stronger margins for the biofuels, according to data 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 data showed. Biodiesel plant usage rose to 89%, the greatest since June 2023.<br> |
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<br>Rising utilization rates and enhancing margins are a welcome relief for the biofuels industry, after operators withstood a [rough start](https://forest500.org/rankings/companies/mission-newenergy-limited) to 2024 as demand growth slowed, leaving the [marketplace oversupplied](https://forest500.org/rankings/companies/mission-newenergy-limited) and forcing a number of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) plant closures.<br> |
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<br>Both sustainable diesel and [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) are more [expensive](https://stocktwits.com/symbol/MNEL) to produce than diesel, making suppliers based on government incentives such as tax credits. Among the 2, [renewable](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) diesel has emerged as the preferred fuel for suppliers, as it reaps much better incentives and can replace diesel completely.<br> |
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<br>Total [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) [production capacity](https://www.google.com/search?kgmid=/m/0cqd_rb) fell 4.2% year-over-year to about 2 billion gallons in October, according to information [launched](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) by the U.S. Energy Information Administration on Tuesday.<br> |
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<br>Renewable diesel output capability increased almost 19% to 4.58 billion [gallons](https://www.google.com/search?kgmid=/m/0cqd_rb) in October, the EIA information revealed, as a lot of new [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) plants opened in the previous 3 years were geared towards it.<br> |
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<br>Still, oversupply pressed eco-friendly 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 in October was increased mainly by a surge in the value of credits required for compliance with [federal](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy) mandates, said Zander Capozzola, vice president of eco-friendly fuels at AEGIS.<br> |
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<br>D4 Renewable Identification Numbers, provided for [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) and eco-friendly diesel production, increased from a low of 56 cents each in September to over 71 cents in October, improving success for making the fuels, Capozzola stated.<br> |
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<br>Margins were also helped by stronger need for diesel, which struck an one-year high in October, raising rates 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.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) Fuel Standard program of California, where most biofuels are consumed in the U.S., also 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 really had everything rowing in the best direction in October," Capozzola stated. (Reporting by Shariq Khan in New York |
