Skip to content

  • Projects
  • Groups
  • Snippets
  • Help
    • Loading...
    • Help
    • Submit feedback
    • Contribute to GitLab
  • Sign in / Register
M
mission-biofuels-india-private-ltd
  • Project
    • Project
    • Details
    • Activity
    • Cycle Analytics
  • Issues 2
    • Issues 2
    • List
    • Board
    • Labels
    • Milestones
  • Merge Requests 0
    • Merge Requests 0
  • CI / CD
    • CI / CD
    • Pipelines
    • Jobs
    • Schedules
  • Wiki
    • Wiki
  • Snippets
    • Snippets
  • Members
    • Members
  • Collapse sidebar
  • Activity
  • Create a new issue
  • Jobs
  • Issue Boards
  • Mollie Fowler
  • mission-biofuels-india-private-ltd
  • Issues
  • #2

Closed
Open
Opened Jan 17, 2025 by Mollie Fowler@molliefowler4
  • Report abuse
  • New issue
Report abuse New issue

US Biofuel Producers Increase in Oct As Profitability Improved,


Renewable diesel producers usage at 77%, highest given that July - AEGIS

Biodiesel producers usage rate hit 89% in Oct, highest given that June 2023

Better credit costs, more powerful diesel demand stimulated higher activity - analyst

NEW YORK, 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 put together by advisory group AEGIS Hedging.

Renewable diesel manufacturers used 77% of their overall operable capability in October, the greatest considering that July 2024, the information revealed. Biodiesel plant usage increased to 89%, the highest since June 2023.

Rising usage rates and improving margins are a welcome relief for the biofuels market, after operators sustained a rough start to 2024 as need growth slowed, leaving the marketplace oversupplied and requiring a variety of biodiesel plant closures.

Both sustainable diesel and biodiesel are more costly to produce than diesel, making providers based on federal government rewards such as tax credits. Among the 2, renewable diesel has actually emerged as the favored fuel for suppliers, as it enjoys better rewards and can substitute diesel totally.

Total biodiesel production capability fell 4.2% year-over-year to about 2 billion gallons in October, according to information launched by the U.S. Energy Information Administration on Tuesday.

Renewable diesel output capacity increased almost 19% year-over-year to 4.58 billion gallons in October, the EIA information showed, as most new biofuel plants opened in the past three years were geared towards it.

Still, oversupply pressed renewable diesel output capacity 6% lower in October from a record 4.90 billion gallons in June.

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 mandates, said Zander Capozzola, vice president of sustainable fuels at AEGIS.

D4 Renewable Identification Numbers, issued for biodiesel and sustainable diesel production, increased from a low of 56 cents each in September to over 71 cents in October, improving profitability for making the fuels, Capozzola stated.

Margins were likewise helped by more powerful demand for diesel, which struck a 1 year high in October, raising prices for both the standard fuel and its alternatives, he said.

Prices for credits under the Low Carbon Fuel Standard program of California, where most biofuels are consumed in the U.S., also from listed below 60 cents each in Sept to over 70 cents each in October, according to AEGIS.

"You truly had whatever rowing in the right direction in October," Capozzola stated. (Reporting by Shariq Khan in New York; Editing by David Gregorio)

Assignee
Assign to
None
Milestone
None
Assign milestone
Time tracking
None
Due date
None
0
Labels
None
Assign labels
  • View project labels
Reference: molliefowler4/mission-biofuels-india-private-ltd#2