Published by Todd Bush on January 6, 2025
U.S. renewable diesel and biodiesel producers ramped up operations in October to multi-month highs, helped by stronger margins for the biofuels, according to data compiled by advisory group AEGIS Hedging. Renewable diesel producers utilized 77% of their total operable capacity in October, the highest since July 2024, the data showed. Biodiesel plant utilization rose to 89%, the highest since June 2023.
>> In Other News: Hydrogen Stocks, Including Plug Power (PLUG), FuelCell (FCEL), Advance After Tax Credit Criteria Eased
Rising utilization rates and improving margins are a welcome relief for the biofuels industry, after operators endured a rough start to 2024 as demand growth slowed, leaving the market oversupplied and forcing a number of biodiesel plant closures. Both renewable diesel and biodiesel are more expensive to produce than diesel, making suppliers dependent on government incentives such as tax credits.
Total biodiesel production capacity fell 4.2% year-over-year to about 2 billion gallons in October, according to data released by the U.S. Energy Information Administration (EIA) on Tuesday. Renewable diesel output capacity rose nearly 19% year-over-year to 4.58 billion gallons in October, as most new biofuel plants opened in the past three years were geared towards it.
Still, oversupply pushed renewable diesel output capacity 6% lower in October from a record 4.90 billion gallons in June. In addition to plant closures, profitability for the industry in October was boosted mainly by a surge in the value of credits required for compliance with federal biofuel mandates, said Zander Capozzola, vice president of renewable fuels at AEGIS.
D4 Renewable Identification Numbers, issued for biodiesel and renewable diesel production, rose from a low of 56 cents each in September to over 71 cents in October, improving profitability for making the fuels, Capozzola said. Margins were also helped by stronger demand for diesel, which hit a one-year high in October, raising prices for both the conventional 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 rose from below 60 cents each in September to over 70 cents each in October, according to AEGIS. "You really had everything rowing in the right direction in October," Capozzola said.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 💥 North America's $170B Hydrogen Surge: Why 2025 is the Tipping Point ⚙️ First Centrifugal on Board Carbon Capture System Launches 🌾 AgriCapture Rice Methane Reduction Project R...
Inside This Issue 🏭 Baker Hughes to Acquire Chart Industries, Accelerating Energy & Industrial Technology Strategy ⛽ Next Hydrogen Launches Ontario’s Largest Onsite Clean Hydrogen Refuelling S...
Inside This Issue 💰 Gevo Sells Carbon Credits from North Dakota Asset ⚡ US Companies CPS Energy, Modern Hydrogen Agree to Work on Clean Power Generation Project ✈️ ESAF Takes Flight: Power-to-Liqu...
RYAM and GranBio Sign MOU to Explore Cellulosic SAF Project at Jesup Facility
JACKSONVILLE, Fla. - Rayonier Advanced Materials Inc. (NYSE: RYAM) (the “Company” or “RYAM”), the global leader in cellulose specialty products, announced today the signing of a Memorandum of Under...
The following statement may be attributed to Jessie Stolark, executive director of the Carbon Capture Coalition (the Coalition), a non-partisan collaboration of companies, labor unions, and NGOs bu...
Asahi Kasei to Supply 1 MW-Class Alkaline-Water Electrolyzer to Hydrogen Project in Finland
DÜSSELDORF, Germany & TOKYO & NOVI, Mich. - Asahi Kasei will supply its Aqualyzer™-C3 containerized 1 MW-class alkaline-water electrolyzer to the Central Finland Mobility Foundation (Cefmof...
Montreal, Quebec--(Newsfile Corp. - July 30, 2025) -- Quebec Innovative Materials Corp. (CSE: QIMC) (OTCQB: QIMCF) (FSE: 7FJ) ("QIMC" or the "Company"), a leading innovator in clean natural hydroge...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.