From b9ac14b329118a5ee7e86ba42840b4a62e971ec6 Mon Sep 17 00:00:00 2001 From: Nilda Eberly Date: Sat, 11 Jan 2025 23:49:40 +0000 Subject: [PATCH] Add 'US Biofuel Producers Increase in Oct As Profitability Improved,' --- ...ncrease-in-Oct-As-Profitability-Improved%2C.md | 15 +++++++++++++++ 1 file changed, 15 insertions(+) create mode 100644 US-Biofuel-Producers-Increase-in-Oct-As-Profitability-Improved%2C.md diff --git a/US-Biofuel-Producers-Increase-in-Oct-As-Profitability-Improved%2C.md b/US-Biofuel-Producers-Increase-in-Oct-As-Profitability-Improved%2C.md new file mode 100644 index 0000000..3ecb8a3 --- /dev/null +++ b/US-Biofuel-Producers-Increase-in-Oct-As-Profitability-Improved%2C.md @@ -0,0 +1,15 @@ +
[Renewable diesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) manufacturers usage at 77%, greatest since July - AEGIS
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Biodiesel manufacturers [utilization rate](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) struck 89% in Oct, greatest given that June 2023
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Better credit rates, [stronger diesel](https://www.crunchbase.com/organization/mission-newenergy) need spurred higher [activity -](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) analyst
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NEW YORK, Jan 3 (Reuters) - U.S. sustainable diesel and biodiesel producers increase operations in October to [multi-month](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) highs, helped by stronger margins for the biofuels, according to information compiled by [advisory](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) group AEGIS Hedging.
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Renewable diesel producers made use of 77% of their overall operable capacity in October, the highest since July 2024, the information revealed. [Biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) plant utilization increased to 89%, the highest because June 2023.
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Rising utilization rates and improving margins are a welcome relief for the biofuels market, after operators sustained a rough start to 2024 as demand growth slowed, leaving the marketplace oversupplied and forcing a number of biodiesel plant closures.
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Both [sustainable diesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) and [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) are more costly to produce than diesel, making [suppliers depending](https://www.pinterest.com.au/missionnewenergy/) on [government rewards](https://www.zoominfo.com/c/mission-newenergy/346542889) such as tax credits. Among the 2, renewable diesel has become the preferred fuel for suppliers, as it gains better incentives and can replace diesel completely.
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Total [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) production [capability fell](https://www.google.com/search?kgmid=/m/0cqd_rb) 4.2% year-over-year to about 2 billion gallons in October, according to information released by the U.S. Energy Information Administration on Tuesday.
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Renewable diesel output capacity increased nearly 19% year-over-year to 4.58 billion gallons in October, the EIA information showed, as many new [biofuel](https://stocktwits.com/symbol/MNEL) plants opened in the previous 3 years were tailored towards it.
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Still, oversupply pressed [eco-friendly](https://pitchbook.com/profiles/company/51278-86) diesel output capacity 6% lower in October from a record 4.90 billion gallons in June.
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In addition to plant closures, [success](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) for the industry in October was [increased](https://www.zoominfo.com/c/mission-newenergy/346542889) generally by a surge in the worth of credits required for compliance with requireds, said Zander Capozzola, vice president of eco-friendly fuels at AEGIS.
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D4 Renewable Identification Numbers, released for biodiesel 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.
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Margins were also [assisted](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) by more [powerful](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) need for diesel, which struck an one-year high in October, raising costs for both the standard fuel and its alternatives, he said.
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Prices for credits under the Low Carbon Fuel Standard [program](https://stocktwits.com/symbol/MNEL) of California, where most biofuels are consumed in the U.S., also increased from listed below 60 cents each in Sept to over 70 cents each in October, according to AEGIS.
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"You truly had whatever rowing in the best direction in October," Capozzola stated. (Reporting by Shariq Khan in New York City \ No newline at end of file