|
|
|
@ -0,0 +1,15 @@ |
|
|
|
<br>Renewable diesel manufacturers usage at 77%, highest considering that July - AEGIS<br> |
|
|
|
<br>Biodiesel producers utilization [rate struck](https://pitchbook.com/profiles/company/51278-86) 89% in Oct, highest since June 2023<br> |
|
|
|
<br>Better credit costs, stronger diesel need stimulated higher activity - analyst<br> |
|
|
|
<br>NEW YORK CITY, Jan 3 (Reuters) - U.S. renewable diesel and biodiesel producers increase operations in October to multi-month highs, helped by more powerful margins for the biofuels, according to information assembled by [advisory](https://www.bloomberg.com/profile/company/MNELF:US) group AEGIS Hedging.<br> |
|
|
|
<br>Renewable diesel producers used 77% of their overall operable capability in October, the highest given that July 2024, the [data revealed](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608). Biodiesel plant usage rose to 89%, the greatest given that June 2023.<br> |
|
|
|
<br>Rising usage rates and improving margins are a welcome relief for the biofuels market, after [operators endured](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) a [rough start](https://www.crunchbase.com/organization/mission-newenergy) to 2024 as need growth slowed, leaving the marketplace oversupplied and forcing a [variety](https://www.google.com/search?kgmid=/m/0cqd_rb) of biodiesel plant closures.<br> |
|
|
|
<br>Both sustainable diesel and biodiesel are more costly to [produce](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) than diesel, making suppliers based on government rewards such as tax credits. Among the 2, sustainable diesel has actually become the preferred fuel for providers, as it gains better incentives and can replace diesel totally.<br> |
|
|
|
<br>Total biodiesel production capability fell 4.2% [year-over-year](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) to about 2 billion [gallons](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) in October, according to by the U.S. Energy Information Administration on Tuesday.<br> |
|
|
|
<br>Renewable diesel output capacity increased almost 19% year-over-year to 4.58 billion gallons in October, the EIA data showed, as most 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 past three years were geared towards it.<br> |
|
|
|
<br>Still, oversupply pressed sustainable diesel output [capacity](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) 6% lower in October from a record 4.90 billion gallons in June.<br> |
|
|
|
<br>In addition to plant closures, profitability for the [industry](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) in October was increased primarily by a surge in the value of credits needed for compliance with [federal biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy) requireds, stated Zander Capozzola, vice [president](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) of sustainable fuels at AEGIS.<br> |
|
|
|
<br>D4 Renewable Identification Numbers, released for biodiesel and [sustainable diesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) production, rose from a low of 56 cents each in September to over 71 cents in October, [enhancing success](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) for making the fuels, Capozzola said.<br> |
|
|
|
<br>[Margins](https://www.google.com/search?kgmid=/m/0cqd_rb) were likewise helped by more powerful need for diesel, which hit a 1 year high in October, [raising](https://stocktwits.com/symbol/MNEL) prices for both the standard fuel and its options, he said.<br> |
|
|
|
<br>Prices for credits under the Low Carbon Fuel Standard program of California, where most biofuels are [consumed](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) in the U.S., also [increased](https://www.crunchbase.com/organization/mission-newenergy) from listed below 60 cents each in Sept to over 70 cents each in October, according to AEGIS.<br> |
|
|
|
<br>"You truly had everything rowing in the right instructions in October," Capozzola said. (Reporting by [Shariq Khan](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) in New York City |
