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.
RVO
Wednesday, 12/13/2023
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.
Wednesday, 11/30/2022
The Renewable Identification Number, or RIN, market is so misunderstood that even its main participants don’t agree on its financial impact, effectiveness, or even basic fairness. RINs are a feature of the federal Renewable Fuel Standard (RFS), which requires renewable fuels like ethanol and bio-based diesel to be blended into fuels sold in the U.S. And depending on your point of view — trader, farmer, refiner, blender, consumer, politician — you may have a very different perspective about how the system works. In today’s RBN blog, we discuss highlights from our new Drill Down Report that attempts to make sense of the complexities of the RINs market.
Sunday, 8/07/2016
Renewable Identification Numbers (RINs) have grabbed the attention of refiners this spring and summer, and for good reason. The price of RINs –– ethanol credits used by refineries to prove compliance with the federal Renewable Fuel Standard –– have soared, and the credits are having an outsized negative effect on some refiners’ costs and profitability. Part of the RIN price spike can be attributed to concerns that there may not be enough to go around this year, and that the situation in 2017 may be far worse. But the rocketing cost of the credits is also raising questions about whether the largely unregulated and opaque RINs market is being manipulated or even cornered by those hoping for a quick, Powerball-size profit. Today, we continue our review of the RINs market with a look at which types of refiners are hit hardest by high RIN prices, and at whether we might be heading off a RIN-availability cliff.
Wednesday, 3/20/2013
When we described the quirky workings of the US renewable fuels mandates back in July and August of 2012 the topic was merely brain food for commodity market theorists and sleep deprived gasoline analysts. This month the market for big brother sounding “Renewable Identification Numbers” (RINS) - credited to refiners when they add ethanol to gasoline blends - is suddenly the hottest thing since sliced bread. The price of 2013 RINS shot from a few cnts/gal in January 2013 to an astronomical $1/gal on March 8, 2013. Earlier this week they were trading in the stratosphere, at about $0.70/gal. Today we look at what lies behind the current RIN furor.