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<br>[Renewable diesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) [manufacturers usage](https://www.zoominfo.com/c/mission-newenergy/346542889) at 77%, highest considering that July - AEGIS<br> |
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<br>[Biodiesel producers](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) usage rate hit 89% in Oct, greatest because June 2023<br> |
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<br>Better credit rates, stronger diesel [demand spurred](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) greater activity - analyst<br> |
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<br>NEW YORK CITY, Jan 3 (Reuters) - U.S. sustainable diesel and [biodiesel](https://www.pinterest.com.au/missionnewenergy/) producers increase 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](https://www.pinterest.com.au/missionnewenergy/) manufacturers used 77% of their overall [operable capability](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) in October, the highest because July 2024, the data revealed. [Biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) plant usage increased to 89%, the highest since June 2023.<br> |
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<br>[Rising utilization](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) rates and [enhancing margins](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) are a welcome relief for the [biofuels](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) market, after operators withstood a rough start to 2024 as demand growth slowed, [leaving](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) the market oversupplied and requiring a variety of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) plant closures.<br> |
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<br>Both eco-friendly diesel and biodiesel are more pricey to produce than diesel, making providers reliant on government incentives such as tax credits. Among the 2, [sustainable](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) diesel has emerged as the favored fuel for providers, as it gains much better incentives and can [substitute diesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) completely.<br> |
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<br>Total biodiesel production capability fell 4.2% [year-over-year](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) to about 2 billion gallons in October, according to information [released](https://www.businessnews.com.au/Company/Mission-NewEnergy) by the U.S. Energy Information Administration on Tuesday.<br> |
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<br>Renewable diesel output capability increased almost 19% year-over-year to 4.58 billion gallons in October, the EIA information revealed, as a lot of brand-new [biofuel](https://www.pinterest.com.au/missionnewenergy/) plants opened in the past 3 years were geared towards it.<br> |
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<br>Still, oversupply pressed eco-friendly 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 increased generally by a surge in the value of credits required for compliance with federal [biofuel](https://stocktwits.com/symbol/MNEL) mandates, said Zander Capozzola, vice president of eco-friendly fuels at AEGIS.<br> |
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<br>D4 Renewable Identification Numbers, issued for biodiesel and 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 likewise helped by [stronger](https://www.pinterest.com.au/missionnewenergy/) need for diesel, which struck an one-year high in October, raising prices for both the standard fuel and its alternatives, he said.<br> |
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<br>Prices for credits under the Low Carbon 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 truly had everything rowing in the ideal instructions in October," Capozzola said. (Reporting by [Shariq Khan](https://www.crunchbase.com/organization/mission-newenergy) in New York |
