RINs rise after US limits biofuel waivers

Prices for renewable identification numbers (RINs) rose across all categories after the Environmental Protection Agency (EPA) yesterday denied dozens of retroactive biofuel blending waiver requests, effectively boosting demand for biofuels.

Ethanol D6 credits rose today by 1.25¢/RIN to 51.5¢/RIN. Biomass-based diesel D4 RINs firmed by a penny to 79.5¢/RIN.

The Argus Renewable Volume Obligation (RVO) ended the session 0.14¢/USG higher at 7.03¢/USG, it's highest since 1 March, 2018, when the RVO was 7.12¢/USG.

RIN credit market participants said the market moves were muted because the EPA's move was anticipated ahead of the upcoming election, as President Donald Trump seeks to shore up his support among farmers, many of whom sell their crops as feedstocks for renewable fuels such as ethanol and biodiesel.

In August, the market got its first indication that the waivers may not be approved when EPA secretary Andrew Wheeler discussed the difficulty of rectifying years of economic hardship for obligated parties that were seeking retroactive waivers.

Argus RVO is an assessment of the per gallon cost to comply with the Renewable Fuel Standard, which requires that refiners, importers and certain other companies each year ensure minimum volumes of renewables blend into the gasoline and diesel they add to the US transportation fuel supply. Tradable RINs are generated from blending renewable fuels with conventional road fuels. Obligated parties submit RINs to prove compliance with the mandate.

By Thom Dwyer