A major theme under the second Trump administration has been “energy dominance,” with a focus on expanded drilling, increased oil and gas production, and an easier path to project approvals. Today, we explain why the goal of “energy dominance” doesn’t mean going it alone, especially when it comes to the refining sector.
The Environmental Protection Agency’s (EPA) proposed Renewable Volume Obligations (RVOs) for 2026-27 did more than just set renewable fuel mandates for the next two years, they included dramatic shifts in the way that imported fuels and feedstocks are handled and raised the likelihood of higher compliance costs during a time in which the federal government has been focused on keeping prices under control. In today’s RBN blog, we look at the critical changes that will affect imported biofuels and feedstocks and the potential cost impact.
Renewable diesel (RD) production has been surging this year, far surpassing blending mandates established by the Environmental Protection Agency (EPA). But there may be storm clouds on the horizon. The jump in RD production has led to excess generation of Renewable Identification Numbers (RINs), the tool used to ensure compliance with the Renewable Fuel Standard (RFS), impacting RD economics. With RD production set to move even higher in 2024 amid already-declining margins, it has left some to wonder how the market will come back into balance. In today’s RBN blog, we look at the growth in RD production, the resulting impact on RIN volumes and prices, and how things could shake out next year.
The Renewable Identification Number (RIN) has long served as the tool used to force renewable fuels like ethanol and soybean oil into the U.S. gasoline and diesel supply. A creation of the Renewable Fuel Standard (RFS), RINs act as a subsidy that enables the production of renewable fuels that would not otherwise be economically justified. RIN prices are set by the usual workings of supply and demand, but chatter has bubbled up recently in the renewable fuels ecosystem that prices for a particular variety of RIN could be headed for a crash. In today’s RBN blog, we explain what’s behind the talk about RIN prices.
The dramatic increase in the price of the D6 Renewable Identification Number a decade ago was one of the more spectacular moves in the history of major commodity trading. The spike in the price of RINs — the credits used to certify compliance with the federal Renewable Fuel Standard (RFS) — was brought on by a sudden uptick in demand and stakeholders who lacked sufficiently deep awareness and understanding of the complex RIN credit system. In today’s RBN blog, we use the story of 2013’s “Big Bang” in D6 RIN prices to explain the fundamental mechanism that determines RIN prices, consider whether such a price shock could occur again, and discuss what stakeholders can do to prepare.
Traveled by air in the U.S. lately? Airports and airplanes are packed to the gills. Unruly passengers are making the nightly news and becoming YouTube sensations. Jet fuel shortages are popping up. But there are other developments in air travel too, including a push by the global airline industry to rein in its greenhouse gas emissions. And the heart of that movement is sustainable aviation fuel, or SAF. While the blending of SAF with conventional jet fuel is not mandated in the U.S., the alternative fuel is gaining altitude, in part because it can generate layers of credits that can be utilized in various renewable fuel trading programs. In today’s blog, we look at the current status of renewable fuel in the U.S. aviation sector.
Renewable diesel is a popular topic in the transportation fuel space, and for good reason. For one, RD provides a lower-carbon, renewable-based alternative to petroleum-based diesel; for another, it’s a chemical twin of and therefore a “drop-in” replacement for ultra-low sulfur diesel. But, most of all, there are the large financial incentives provided by California’s Low Carbon Fuel Standard, the U.S. Renewable Fuel Standard, the U.S. Biodiesel Tax Credit, and other programs, which can make RD production highly profitable. Driven by these factors, there’s a lot of renewable diesel production capacity under construction or on the drawing board: everything from greenfield projects to expansions of existing RD refineries to conversions of old-school refineries so they can make RD. Today, we put the spotlight on RD and discuss how it differs from biodiesel, how it’s produced, and the new RD capacity coming online in North America.
Biodiesel has long constituted a small but stable portion of the diesel fuel diet in North America, its production being driven primarily by the U.S. Renewable Fuel Standard and Biodiesel Income Tax Credit (BTC). Produced from a variety of feedstocks, including soybean oil, corn oil, animal fats, and used cooking oils, biodiesel offers a low “carbon intensity,” or CI — a big plus in California and other jurisdictions with low carbon fuel regulations. The incentives for producing biodiesel are substantial, but there are two big catches with the fuel: a limited supply of feedstocks and properties limiting how much can be blended with petroleum-based diesel. Today, we continue our series on low carbon fuel standards with a look at biodiesel’s pros, cons, history, and prospects.
As governments and corporations around the world evaluate methods of decarbonization across sectors, one focus area has been transportation, since the petroleum fuels used to mobilize economies are significant contributors to greenhouse gas (GHG) emissions. California’s Low Carbon Fuel Standard (LCFS) is one of the longest-running programs for carbon intensity (CI) reduction targeting the transportation sector and provides an ideal case study to review for a better understanding of how one type of GHG reduction policy is anticipated to work. As many of the principles in this pioneering program are being evaluated for replication elsewhere, its results and consequences are still in the making. In today’s blog we’ll provide an overview of the Golden State’s groundbreaking LCFS, looking at its history, how it functions, and its effectiveness at meeting its goals to date.
