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Call to Action for a Truly Sustainable Renewable Future
August 8, 2013 – 5:07 pm | No Comment

-Include high octane/high ethanol Regular Grade fuel in EPA Tier 3 regulations.
-Use a dedicated, self-reducing non-renewable carbon user fee to fund renewable energy R&D.
-Start an Apollo-type program to bring New Ideas to sustainable biofuel and …

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Ethanol Blending Pressures Already Shrinking Refiner Margins

Submitted by on May 16, 2016 – 5:42 pmNo Comment

by Laura Blewitt  (Bloomberg)  Federally mandated ethanol blending is adding extra pressure to the faltering profits of U.S. refiners.

The worst crude oil downturn in a generation, which at first helped refiners’ profits, has now passed through to the fuel prices. Now, gasoline is cheaper than the ethanol that refiners have no choice but to use.

…   Chicago ethanol now runs at about a 2-cent premium to gasoline, while Los Angeles prices are 24 cents higher, David Hackett, president of energy consultancy Stillwater Associates said by phone.

If a company doesn’t blend enough ethanol to meet its quota, it can fill the obligation by purchasing blending credits called RINs.

Concerns of a 2017 RIN shortage are mounting. A report released last month by Andy Lipow, president of Lipow Oil Associates, predicted the price of RIN credits could surge in a “sequel” to the 10-fold price run up seen in 2013. Lipow pointed to actual gasoline demand that’s come out stronger than forecast.  READ MORE and MORE (Platts)

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