Splash Blending Advantageous for Marketers Under RFS2
(OPIS) …Multi-state non-refining retailers such as Quik Trip, WaWa and RaceTrac will remain — for now anyway — the least encumbered and most advantaged part of the supply chain where biofuel regulation is concerned. Splash blenders, who don’t produce or supply unfinished petroleum fuel, also don’t have importers’ and refiners’ obligation to blend biofuels into set percentages of their output. This means that those blenders can sell all of the RINs they receive with biofuel by adding the renewables to their finished fuel mixtures, either to obligated parties (most refiners and importers) or middlemen participating in RIN trading. Those RINs have been expensive — 2010 ethanol RINs currently command 6.50cts/gal and biodiesel RINs are going for anywhere between 5 and 15cts/gal, depending on their “vintage.”
Put another way, many of the big net sellers of finished fuel at the pump will continue to be large net sellers of RINs.
…Big splash blenders aren’t the only ones seen benefiting from RFS2. The regulation allows those blending less than 125,000 gal/year of biofuels into finished petroleum and who don’t have renewable volume obligations to relegate the RINs that accompany purchases of biofuel back upstream. READ MORE
Related posts:
- RFS2: Understanding Challenges & Opportunities in the Final Rules February 23 Webinar
- NBB Calls on EPA to Implement RFS2 Biodiesel Targets
- NY Times Applauds EPA Inclusion of ILUC in RFS2
- EPA Indicates E15 Blending OK is Likely, But Delays Ruling to Mid-2010
- Obama Announces Steps to Boost Biofuels, Clean Coal, Releases RFS2
