by Mario Parker (Bloomberg/Southwest Farm Press) Government work has paid off handsomely for billionaire Carl Icahn. CVR Energy Inc., his oil refining company, saved about $60 million in the first quarter because of expectations that the federal government will ease
RINs markets
Back TO HOMEEthanol and Biodiesel: Dropping Below the Production Cost of Fossil Fuels?
by Jim Lane (Biofuels Digest) ... As you can see from the hard data, the production cost for ethanol today is $1.22 per gallon, which translates to $51.24 per barrel. Now, on an energy basis — given that ethanol has 67%
May 19, 2017 Read Full Article
Senators Call on SEC, EPA, CFTC to Investigate Trump Advisor Carl Icahn for Possible Insider Trading, Market Manipulation in Renewable Fuel Credit Market
(Office of Senator Elizabeth Warren) U.S. Senators Elizabeth Warren (D-Mass.), Debbie Stabenow (D-Mich.), Tom Carper (D-Del.), Sherrod Brown (D-Ohio), Sheldon Whitehouse (D-R.I.), Tammy Baldwin (D-Wis.), Tammy Duckworth (D-Ill.), and Amy Klobuchar (D-Minn.), called on the heads of the Commodities Futures
May 18, 2017 Read Full Article
Business and Consumers Will Both Lose if Renewable Fuel Standard Is Changed
by Max McBrayer (The Hill/RaceTrac Petroleum) ... My perspective comes from over 30 years in the fuels business. Currently, I am chief supply officer of RaceTrac Petroleum, a fuel retailer and operator of more than 700 convenience stores from Texas
May 08, 2017 Read Full Article
Icahn's Oil Refiner Reports Plunge in Biofuels Bill in First Quarter
by Jarrett Renshaw and Chris Prentice (Reuters) Biofuels compliance expenses for CVR Energy's refining unit fell to the lowest level in almost five years during the first quarter, the company said on Thursday, as the U.S. government weighs an overhaul
April 28, 2017 Read Full Article
Capitol Crude: The US Oil Policy Podcast--Oil Refiners and Renewable Fuels in the Trump Era
by Brian Scheid and Meghan Gordon (Platts) Have refiners' hopes for a quick rollback of the US biofuel mandate by the Trump administration fizzled out? The industry judged two early appointments as signs of the president's willingness to reform the Renewable
April 24, 2017 Read Full Article
As OPEC Falls, What Is the Liberated Market Signaling to Producers?
by Jim Lane (Biofuels Digest) ... There’s a theory going around that biofuels are “government fuels” — and prices are set around a table in Washington, DC. But if you visit the big biodiesel and ethanol firms, you’ll see right
March 22, 2017 Read Full Article
RNG, Cellulosic Fuels and the Renewable Fuel Standard
by Susan Olson (BioCycle Magazine) Because of an all-time high waiver credit value paired with strong advanced RIN prices, renewable natural gas could fetch $35/MMBtu in 2017. Since 2009, the U.S. Environmental Protection Agency has mandated the blending of renewable fuels
March 07, 2017 Read Full Article
Growth Energy Releases New Analysis on Reasons Why Not to Change the Renewable Fuel Standard PO
(Biofuels International) Growth Energy has released economic analysis that it says “identifies numerous problems” associated with changing the Renewable Fuel Standard (RFS) point of obligation. The US ethanol trade body strongly supports EPA’s proposed denial to move the point of obligation. “Changing the
March 03, 2017 Read Full Article
RINs Plunge to 14-Month Low Following EPA Regulation Freeze
(Platts) Renewable Identification Numbers traded at 14-month lows Wednesday following news that the Environmental Protection Agency will delay implementation of 30 regulations until March 21, despite industry groups saying 2017 blending mandates are unlikely to change. "When a market is heavily
January 27, 2017 Read Full Article
Want to Drain the Swamp? Start with the Renewable Fuel Standard
by David Williams (The Gilmer Mirror) Incoming President Donald Trump's promise to "drain the swamp" is getting an early test from one of his closest friends. Billionaire investor and Trump confidant Carl Icahn is requesting changes to the Renewable Fuel Standard,
January 13, 2017 Read Full Article
Biofuel Producers Back Renewable Credit Trading Transparency
by Brian Dabbs (Bloomberg) Recent criticism of secrecy and alleged manipulation in biofuel credit trading, delivered by a top adviser to President-elect Donald Trump, is striking a chord among ethanol and other renewable fuel producers. Those producers suggest insufficient credit trading oversight
January 04, 2017 Read Full Article
Don't Change the RFS Point of Obligation
by Mark Griffin (Pro Petroleum/Real Clear Energy) ... Moving the point of obligation eliminates our ability to compete and gives major refiners a significant unfair advantage over small businesses in small markets across the country. Liquidity and competition are what keep fuel
December 23, 2016 Read Full Article
A Few Reasonable RIN Ideas
by John Campbell (Ocean Park Advisors) The RINs market would be improved with timely blend targets and compliance reporting, increased transparency and trading limits. -- ... Although it might reduce undesirable trading practices, moving the point of obligation would not
December 22, 2016 Read Full Article
Economists Examine RVO Impact on Conventional, Advanced Biofuels
by Susanne Retka Schill (Ethanol Producer Magazine) Two central questions arise when considering biofuels consumption through 2022, write University of Illinois ag economists Scott Irwin and Darrel Good: “When will domestic consumption of ethanol reach the statutory RFS mandate ceiling
December 12, 2016 Read Full Article
AgMRC Looks at Drivers behind High Ethanol Blending
by Susanne Retka Schill (Ethanol Producer Magazine) The economic drivers behind recent higher ethanol blending rates were examined by Iowa economic researcher Sampath Jayasinghe in the Renewable Energy Report from the Iowa Agricultural Marketing Resource Center. In the week ending Sept.
November 14, 2016 Read Full Article
Big Oil Companies Reap Windfall From Ethanol Rules
by Bradley Olson (Wall Street Journal) Some refiners stand to rake in $1 billion by selling fuel credits, while others must spend millions to comply -- Environmental regulations designed to boost the amount of ethanol blended into the U.S. gasoline supply
November 07, 2016 Read Full Article
Murphy USA: A Misunderstood Model – Weitz Investment Management
(Value Walk) Murphy USA is the largest stand-alone fuel retailer in the United States. The majority of its stores are located adjacent to a Wal-Mart, and they pursue a low-cost, high-volume model. -- ... Lastly, Murphy makes a sizeable portion
November 07, 2016 Read Full Article
What's Up with RINs Prices?
by Scott Irwin (Farm Doc Daily/University of Illinois at Urbana-Champaign) RINs prices have been making headlines in recent months, with prices at times crossing the psychologically important $1 per gallon mark. Echoing earlier complaints (farmdoc daily, July 19, 2013; December
October 07, 2016 Read Full Article
U.S. Files Complaint, Announces Settlement to Address Alleged Renewable Fuel Standard Violations by NGL Crude Logistics and Western Dubuque Biodiesel
(Environmental Protection Agency) The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice today announced the filing of a complaint against NGL Crude Logistics, LLC and Western Dubuque Biodiesel, LLC and a settlement with Western Dubuque to address
October 05, 2016 Read Full Article
“The Myth of High RIN Prices As Proof of the Blend Wall”: New Report
by Jim Lane (Biofuels Digest) In Washington, the Biotechnology Innovation Organization released the new white paper, “The Myth of High RIN Prices As Proof of the Blend Wall,” analyzing data recently released by EPA on compliance with the Renewable Fuel
October 04, 2016 Read Full Article
It’s Time to End the Myth That High RIN Prices Prove Existence of the Blend Wall
by Brent Erickson (Biotechnology Innovation Organization/Biofuels Digest) ... Data recently released by EPA refutes the widely held assumption that reaching and exceeding the blend wall caused the 2013 rise in RIN prices. This newly available data calls for a thorough
October 04, 2016 Read Full Article
Will Changing the Point of Obligation Improve the RFS?
by John Campbell (Biodiesel Magazine/Ocean Park Advisors) The U.S. EPA has set off a debate within the petroleum industry by suggesting that the point of obligation for compliance with the renewable fuel standard (RFS) be moved from the hands of a
September 29, 2016 Read Full Article
Trump Biofuel Proposals Echo Those of Backer Icahn
by Chris Prentice (Reuters) Republican Presidential candidate Donald Trump on Thursday appeared to weigh into a debate over a controversial U.S. biofuels program with a proposal that would back the position of billionaire investor Carl Icahn, one of his wealthiest
September 17, 2016 Read Full Article
Refiner Cuts Costs, Offers Buyouts as Ethanol Credits Rise
by Barbara J Powell (Bloomberg) ... RINS aren’t the real problem for the Philadelphia refinery, Robert Campbell, head of oil products research for London-based Energy Aspects, said in a telephone interview today. “East Coast refiners are not particularly competitive in this
September 09, 2016 Read Full Article
Blog: Competing with Sub $50 Oil - a Strategy for Biofuels
by Irshad Ahmed (Lee Enterprises Consulting/Biofuels International) If bioenergy represents a sustainable energy future for the planet, then why must it compete with oil prices to be deemed a feasible energy alternative for the society? The answer is simple: It is because
September 03, 2016 Read Full Article
Where’s Butanol, or Other Substitutes for Gasoline besides Ethanol?
by Jim Lane (Biofuels Digest) ... Is there some fundamental reason that the automotive biofuels people haven’t shifted to butanol or iso-butanol or some other compound that would be more compatible with gasoline and the present highly evolved gasoline engines? Is
August 26, 2016 Read Full Article
Feature: Could a RINs Market Probe Fuel RFS Reforms?
by Brian Scheid and Herman Wang (Platts) Growing pressure for a federal probe of the opaque market underpinning the Renewable Fuel Standard could bolster efforts to dramatically reform the landmark biofuels policy. Earlier this month, billionaire investor Carl Icahn sent a heated,
August 25, 2016 Read Full Article
Another Billionaire Bailout?
by Brooke Coleman (Bloomberg/Advanced Biofuels Business Council) ... (Carl) Icahn’s ask is pretty simple. He wants the EPA to change the rules midstream to relieve his petroleum refining assets of their obligations. ... The RFS, for its part, requires petroleum companies like Icahn’s
August 25, 2016 Read Full Article
The RINferno, as It Burns up America’s Venture into Advanced Biofuels
by Jim Lane (Biofuels Digest) ... There’s a separate category of RINs for advanced biofuels. These are fuels that have at least a 50% reduction in fossil fuels compared to 2005 baseline gasoline. Overall, to qualify under the RFS, you need
August 19, 2016 Read Full Article
RINferno
by Jim Lane (Biofuels Digest) Let me see if we got this right. Donald Trump loves the Renewable Fuel Standard --- Carl Icahn loves Donald Trump --- Therefore, Carl Icahn hates the Renewable Fuel Standard With that, welcome to the 2016 United
August 17, 2016 Read Full Article
Viewpoint: Run on the RINs Bank This Year
(Argus Media) The bank of carryover RINs used to comply with US renewable fuel mandates faces a draw of nearly 500mn RINs this year to meet a stiff blend requirement of 10.1pc of the country's transportation fuel. An Argus analysis found
August 15, 2016 Read Full Article
EPA, CFTC Asked to Investigate Alleged Manipulation in Biofuels Market
by Alex Guillén (Politico Pro) The Renewable Fuels Association today asked the Commodity Futures Trading Commission and EPA to investigate whether anyone is manipulating the market for a key biofuels compliance credit to drum up support for repeal of the
August 01, 2016 Read Full Article
Valero Says RFS Compliance Costs Are Soaring; Renewable Industry Snaps Back “Poor Capacity Planning”
by Jim Lane (Biofuels Digest) In Texas, Reuters is reporting that “Valero Energy expects to get hit with a half-billion-dollar bill in the second half of the year” and the news agency attributed the costs to “the rising cost of
August 01, 2016 Read Full Article
Prices of U.S. Biofuels Credits Jump on Supply Worries
by Chris Prentice and Jessica Resnick-Ault (Reuters) Prices of U.S. biofuels compliance credits jumped in early trade on Wednesday as worries mounted over potential supplies after Goldman Sachs Group signaled potential tightness next year on higher biofuels use requirements, according
June 30, 2016 Read Full Article
Two Florida Men Plead Guilty to Multi-State Biodiesel Fraud Scheme
(U.S. Department of Justice) Thomas Davanzo, of Estero, Florida, and Robert Fedyna, of Naples, Florida, pleaded guilty today for their participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming
June 27, 2016 Read Full Article
The Annual Battle for Renewables
by Bob Dinneen (The Hill) ... It’s worth recalling why a bipartisan coalition of policymakers, including President George W. Bush, worked together in 2007 to expand the Renewable Fuel Standard (RFS), which requires oil companies to make increasing amounts of biofuel
June 17, 2016 Read Full Article
Valero Presses EPA for RFS Change
(Argus Media) US Environmental Protection Agency administrators should shift the burden of US biofuel blending mandates closer to retail stations, US independent refiner Valero said today. The company, one of the largest US producers of both gasoline and ethanol, petitioned EPA
June 14, 2016 Read Full Article
Ethanol Blending Pressures Already Shrinking Refiner Margins
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,
May 16, 2016 Read Full Article
Make Haste with Waste
by Jim Lane (Biofuels Digest) ... (W)hen you compare them to homogenized, uniform, high-yield, purpose-grown energy crops. residues may be queer, but they are here. Not only available, but reliable, you can count on the fact that they will not
April 08, 2016 Read Full Article
OPIS Publishes Renewable Fuels Supply Supplement
(OPIS) The Renewable Fuels Supply Supplement is the first publication in the OPIS Market Trends series and is now available! This supplement is designed to analyze, educate and inform the global downstream industry of the latest trends, technologies and regulatory
March 03, 2016 Read Full Article
A Model of State and Federal Biofuel Policy: Feasibility Assessment of the California Low Carbon Fuel Standard
by Adam Christensen, Benjamin Hobbs (Science Direct/Applied Energy) Biofuel policy is under near constant review at both the federal and state level. For example, as part of on-going implementation of the California Low Carbon Fuel Standard (LCFS), the California Air
March 03, 2016 Read Full Article
Think Crude's Cheap? Biodiesel's Going for Free in Some Places
by Laura Blewitt and Mario Parker (Bloomberg) ... Biodiesel’s become so cheap in the U.S. that some refiners are being paid to use it. Midwest refiners are paying as little as 64.5 cents a gallon for the fuel after factoring in a $1-a-gallon
February 02, 2016 Read Full Article
Olden Days, Golden Days, and Golden Gripes
by Jim Lane (Biofuels Digest) ... So, how fast did petroleum expand production, in comparison to low-carbon renewable fuels? ... One thing is clear, renewable fuels are moving fast, by comparison. From 1866 through 1899 (a year when negative attention on the
January 28, 2016 Read Full Article
Betting on Biogas Growth in 2016
by Amanda Bilek (Biomass Magazine/Great Plains Institute) ... In the summer of 2014, the USDA released the Biogas Opportunities Roadmap. The release of this roadmap marked the first time that federal agencies made a public commitment to coordinate biogas activities and
January 26, 2016 Read Full Article
Octane’s Liquid Diamonds: The Secret Value of Ethanol
by Jim Lane (Biofuels Digest) Is ethanol really worth $3.81 for the octane but costs only $1.39 on the market? How could that be? Math majors around the country are frequently perplexed by this one. If you start with 84-octane RBOB
January 26, 2016 Read Full Article
Pushmi-Pullyu: How Do Carbon Prices and Fuel Mandates Work Together in Breaking through a Fossil Fuel Monopoly? Or, Do They?
by Jim Lane (Biofuels Digest) Sometimes, the set-up of the transition from fossil fuels is as pretty and impractical as Dr. Doolittle’s Pushmi-Pullyu. The Digest investigates. -- ... For example, a renewable fuel does not qualify under the Renewable Fuel Standard
January 12, 2016 Read Full Article
The 7 Flying Reindeer: Renewable Fuel Myths that Continue to Defy Gravity
by Jim Lane (Biofuels Digest) Food vs Fuel, biofuels causing corn planting to skyrocket, low oil prices killing off renewable fuels, the subsidy myth, the emissions myth, the “people won’t buy the fuels” myth, and the Insanity myth. ... In the world
December 23, 2015 Read Full Article
EPA’s Contradictory Rule Is a Gut Punch to Advanced Biofuels
by Brent Erickson (Biofuels Digest/Biotechnology Industry Organization) After a painful and damaging two-year delay, the Environmental Protection Agency (EPA) last week published Renewable Fuel Standards (RFS) for 2014, 2015 and 2016. Unfortunately, the agency finalized a rule riddled with contradictions and
December 10, 2015 Read Full Article
RINs Behavior after EPA Rule Shows Ethanol-Biodiesel Relationship
by Susanne Retka Schill (Ethanol Producer Magazine) The release of the U.S. EPA’s final rulemaking for the renewable fuel standard (RFS) was a shock to the RINs market—the renewable identification numbers used by obligated parties to demonstrate compliance. Biodiesel, D4
December 09, 2015 Read Full Article
RINs Gone Wild? (round 2)
by Scott Irwin and Darrel Good (FarmDocDaily) The EPA released the final rulemaking for 2014-2016 RFS standards on Monday, November 30. This release follows preliminary rulemaking released on May 29 of this year. Figures 1 and 2 are based on
December 07, 2015 Read Full Article
Sit on the RINs
by Jim Lane (Biofuels Digest) ... The US Environmental Protection Agency has discovered the following way of interpreting Energy Independence and Security Act. To wit, if the transportation fuels supply chain — controlled by guess whom — does not build renewable
November 16, 2015 Read Full Article
8 Ways around the Big, Bad Oxygen Problem in the Advanced Bioeconomy Parts 1 and 2
by Jim Lane (Biofuels Digest) In the terrestrial world, oxygen is colorless, odorless, and try to get through an hour without some. In the Bioeconomy Cinematic Universe, oxygen is harder than steel, heavier than a black hole, and higher than
October 14, 2015 Read Full Article
Irwin, Good Analyze Ethanol, Biodiesel RINs Relationships
by Susanne Retka Schill (Ethanol Producer Magazine) Ethanol D6 RIN prices have stayed relatively stable over the summer while D4 biodiesel RINs prices plummeted, Illinois economists Scott Irwin and Darrel Good point out in a recent FarmDocDaily post, “Why Isn’t the
September 28, 2015 Read Full Article
That Blend Wall Buster, Renewable Natural Gas: The Digest’s 2015 8-Slide Guide
by Jim Lane (Biofuels Digest) If the outlook on cellulosic biofuels is relatively bullish in 2015 compared to 2014 — Last year, there were 33.0 million RINs generated for cellulosic biofuels; this year 36.9 million RINs and we’re only in
August 19, 2015 Read Full Article
Industry’s Withering Critique of EPA’s Renewable Fuel Standard Proposals for 2014, 2015, 2016: The Digested Version
by Jim Lane (Biofuels Digest) Heard dire comments like “POET expects to stop all future U.S. cellulosic investments if EPA’s proposed base renewable fuel requirements are not strengthened.” Want to understand the substantive concerns on the Renewable Fuel Standard, but
July 31, 2015 Read Full Article
EPA Begins Publishing Annual Data on RIN Sales, RIN Holdings
by Erin Voegele (Ethanol Producer Magazine) In early July, the U.S. EPA released renewable identification number (RIN) sales data aggregated by renewable fuel standard (RFS) party type for the first time. The newly released data is in addition to monthly
July 17, 2015 Read Full Article
US EPA Unveils New Data for RIN Sales
(Platts) The US Environmental Protection Agency on Tuesday released, for the first time, data aggregated by the type of organization selling or holding the credits used to demonstrate compliance with the Renewable Fuel Standard. EPA said the new aggregated data for
July 10, 2015 Read Full Article
4 Minutes with… Jeff Hove, Vice President, RINAlliance
by Jim Lane (Biofuels Digest) ... The program serves almost 200 petroleum marketers that bring renewable fuels to the public across the U.S. Our software based programs decrease compliance burdens (RFS and LCFS) and increase the potential to profit from the
July 03, 2015 Read Full Article
Ethanol for All, And Then Some
by Robert Rapier (Investing Daily) ... If less fuel is being produced than the mandated level, it drives up the price of the RIN and in theory increases the incentive to produce the fuel (which is the intent of the system). For
July 02, 2015 Read Full Article
EPA Hearings on Renewable Fuel Standard: Testimony of Geoff Cooper, Senior Vice President at the Renewable Fuels Association
(Biofuels Digest) Good morning, my name is Geoff Cooper and I am representing the Renewable Fuels Association. By any measure, the RFS has been a tremendous success. It has stimulated growth in biofuel production, revitalized rural economies, reduced GHG emissions,
June 26, 2015 Read Full Article
In Blow to Big Oil, EPA Says Oil Refiners Recover RINs Costs
by Chris Prentice (Reuters) Oil companies ultimately recover their costs of complying with the U.S. biofuels program, according to an Environmental Protection Agency (EPA) analysis that marks the regulator's clearest challenge yet to a key criticism of the policy. The report,
June 16, 2015 Read Full Article
U.S. Buyers Scoop up Brazilian Ethanol Amid RIN Revival
by Chris Prentice (Reuters) Oil traders are rushing to import ethanol from Brazil for the first time this year after U.S. regulators moved to increase use of advanced biofuel, opening a wide spread in the niche biofuel credits market. The premium
June 16, 2015 Read Full Article
Proposed RVO Raises Multiple Questions for Illinois Economists
by Susanne Retka Schill (Ethanol Producer Magazine) The U.S. EPA’s May 29 proposed renewable volume obligations (RVO) is under scrutiny by University of Illinois economists in recent FarmDocDaily posts. Jonathan Coppess examines the argument that EPA appears to be turning the
June 15, 2015 Read Full Article
New Statistical Analysis: Retail Gas Prices Unaffected by Renewable Fuel Standard RIN Credits
(Renewable Fuels Association) Retail gasoline prices from 2013 through the first quarter of 2015 were unaffected by prices for “RIN credits” (Renewable Identification Numbers) that are used to demonstrate compliance with the Renewable Fuel Standard (RFS), according to a new
May 26, 2015 Read Full Article
Renewable Fuels Association Urges EPA to Get ”Back on Track” with Renewable Fuel Standard
by Jim Lane (Biofuels Digest) In Washington, the Renewable Fuels Association (RFA) submitted comments today to the U.S. Environmental Protection Agency (EPA) expressing support for a proposed legal agreement that sets specific deadlines for establishing Renewable Fuel Standard (RFS) volume
May 26, 2015 Read Full Article
TruMarx Intro's Biodiesel, RINs Transaction Capability on COMET
(TruMarx Data Partners Inc.) TruMarx Data Partners Inc., the creator of COMET, an on-demand platform for custom bilateral OTC transactions, announced the introduction of biodiesel and RINs transaction capability. COMET now supports direct bilateral transactions for biodiesel and assigned RINs, separated
January 14, 2015 Read Full Article
The 5 Most Maddening Myths about Corn and Ethanol
by Jim Lane (Biofuels Digest) Food vs Fuel, emissions, cost competitiveness, and RINsanity. Some of the most unfair bricks hurled at corn starch-based ethanol — and here’s why. ... In the field of renewable fuels, there’s no technology that’s done more
January 12, 2015 Read Full Article
Gasoline Price Plunge in U.S. Slowed by Higher Ethanol Costs
by Mario Parker (Bloomberg BusinessWeek) The biggest plunge in U.S. gasoline prices since 2008 is slowing as higher ethanol boosts the cost to make the motor fuel. Ethanol futures surpassed gasoline last month for the first time since March. Faced with
January 08, 2015 Read Full Article
Biofuels and the Oil Price, Gloomy Gus, Energy Bear, Express Train to Mood Hell
by Jim Lane (Biofuels Digest) Oil prices are down, energy stocks are plunging, and the investor mood is giving Lord of the Flies a run for its money for mix of peril, fantasy and pessimism. So why is the hard
January 07, 2015 Read Full Article
Q-RINs Emerge in the Renewable Fuels Market
(Genscape/Biodiesel Magazine) After the U.S. EPA's final Quality Assurance Plan rule established a new, unified QAP program over the summer, Q-RINs have been successfully transferred in the RIN market. “[In December] we received confirmation from a RIN buyer that
December 29, 2014 Read Full Article
Does the Oil Glut Spell DOOM, GLOOM or BOOM for Alternative Fuels?
by Jim Lane (Biofuels Digest) How does $60 oil impact payback for natgas or hybrid electric vehicles, and cellulosic biofuels? The going assumption is that low oil prices are bad for alternative fuels — but it’s not always the case.
December 16, 2014 Read Full Article
Liquid CO2, or Liquid Gold? Maybe Both, as Aemetis Adds CO2 Liquefaction at Its Keyes, CA Plant
by Jim Lane (Biofuels Digest) ... To Aemetis, a route to improved margins that will also help the environment. Here’s how. News arrives from Aemetis, via its latest SEC filings, that the company has “entered into an agreement with Denmark-based Union
October 28, 2014 Read Full Article
Congressional Budget Office Says RFS Could Result in $6.00 per Gallon Credits for Advanced Biofuels
by Jim Lane (Biofuels Digest) How does the Congressional Budget Office look at biofuels and the Renewable Fuel Standard? How does $3.00-$6.00 advanced biofuels RINs? A $0.26 per gallon hike in gasoline prices? A $1.27 drop in the price of E85
October 27, 2014 Read Full Article
Genscape Suggests 75 Million Xellulosic RINs Possible in 2014
by Susanne Retka Schill (Ethanol Producer Magazine) Cellulosic ethanol production could contribute up to 9 million cellulosic D3 renewable identification numbers (RINs) in 2014, if active plants achieve full capacity in the last four months of the year, suggests a
October 02, 2014 Read Full Article
DuPont Industrial Biosciences Selects Murex LLC as Marketing Partner for Cellulosic Ethanol
(PR WEB) DuPont Industrial Biosciences (DuPont) today announced the selection of Murex LLC to market the cellulosic ethanol produced from its 30-million-gallon-per-year plant in Nevada, Iowa. Upon completion, the facility will be the largest cellulosic ethanol plant in the world. DuPont
September 18, 2014 Read Full Article
Rolling Back the Write Down of the Renewable Mandate for 2014: The RINs Market Rings the Bell Again
by Scott Irwin (University of Illinois) The EPA is apparently going to finalize 2014 RFS rules in the near future. This will at least temporarily bring the tumultuous process to an end that started with the release of the preliminary RFS
August 12, 2014 Read Full Article
Mid-Year RIN Update
by Nick Paulson (Farm Doc Daily/University of Illinois) ... However, D4 generation has rebounded substantially since February, averaging more than 227 million RIN gallons from March through June. Through June, a total of 1.209 billion D4 RINs have been generated in
August 07, 2014 Read Full Article
Time Has Come Today
by Ron Kotrba (Biodiesel Magazine) The synergies between co-located ethanol and biodiesel production have been discussed for a decade. The existing infrastructure to share process essentials, an in-house feedstock in distillers corn oil (DCO), and use of ethanol rather than methanol for
June 17, 2014 Read Full Article
Defusing the Cellulosic Bomb inside the Renewable Fuel Standard
by Jim Lane (Biofuel Digest) Thought the 2014 volume debate over the Renewable Fuel Standard was tough enough?What about the ticking bomb inside the RFS — that could completely flat-line the value of cellulosic RINs and make it near impossible
May 27, 2014 Read Full Article
RIN Stocks Part II - 'Healthy' Levels
by Rob Johansson and Seth Meyer (FarmDocDaily/USDA) Building on the discussion of RIN pricing and stock holding (here) we explore what a 'healthy' RIN bank may look like, estimate RIN stocks for 2014. The availability of RIN stocks will interact with final mandates
April 24, 2014 Read Full Article
RIN Stocks Part I - Valuation
by Rob Johansson and Seth Meyer (USDA/FarmDocDaily) ... It is clear that the bankable (and borrowable) nature of RINs allow obligated parties to optimize their compliance costs over time. In the past, pre-blendwall, it was relatively inexpensive to generate and save surplus RINs allowed
April 17, 2014 Read Full Article
Will the EPA Reverse Itself on the Write Down of the Renewable Mandate for 2014? The Message from the RINs Market
by Scott Irwin (FarmDocDaily/University of Illinois) ... The purpose of today's post is to show that the recent behavior of prices in the RINs market suggests the odds of the EPA reversing the proposed write down of the renewable mandate for
March 04, 2014 Read Full Article
Cellulosic Ethanol, Once the Way of the Future, Is Off to a Delayed, Boisterous Start
by Steven Mufson (The Washington Post) The “now hiring” sign is up online for Emmetsburg, Iowa, where the nation’s largest maker of ethanol used for motor fuel is putting the final touches on a manufacturing plant that will rely not
November 13, 2013 Read Full Article
INSIGHT-Lord of the RINs? Vitol's Ethanol Credit Bonanza
by Cezary Podkul (Reuters) Swiss trading company Vitol SA is among the biggest beneficiaries of an opaque U.S.-government-mandated trading scheme established to help boost the share of ethanol in the nation's fuel supply, market sources say. As refiners scrambled this year
November 08, 2013 Read Full Article
RIN Market Is Working Well To Enforce Biofuel Mandates, According To CARD Economists
(Center For Agricultural And Rural Development/PR NewsWire/Yahoo!Finance) A new analysis by Iowa State University economists Bruce A. Babcock and Sebastien Pouliot of the EPA's ethanol market system finds that it works effectively and as intended in tracking compliance with the
November 07, 2013 Read Full Article
Biofuel Groups Seek to Intervene in Latest Legal Challenge to RFS
(Agri-Pulse) The Renewable Fuels Association, Growth Energy and the Biotechnology Industry Organization filed Friday a motion with the U.S. Court of Appeals for the District of Columbia to intervene in a lawsuit filed by the oil industry in September challenging
November 05, 2013 Read Full Article
U.S. Farm State Lawmakers Urge CFTC to Examine Volatile RINs Market
by Cezary Podkul (Reuters) Thirteen U.S. lawmakers on Tuesday urged the derivatives market regulator to examine fraud and manipulation in the cash market for ethanol blending credits known as RINs, as political scrutiny of the market intensifies following an unprecedented
October 23, 2013 Read Full Article
Economist Examines $2 Billion Drop in Total RIN Market
by Susanne Retka Schill (Ethanol Producer Magazine) What’s behind the plunge in renewable identification number (RIN) prices? University of Illinois economist Scott Irwin examined the question in another of his ongoing series of FarmDocDaily posts following the dramatic shifts in RINs
October 15, 2013 Read Full Article
Biofuel Blending Rules Won't Raise Gas Prices | Commentary
by Brent Erickson (Roll Call/Biotechnology Industry Organization) ... What’s really behind this year’s rapid rise in the price of RINs? And will their cost be passed to consumers at the pump? A simple exercise in following the money shows that it’s the
October 02, 2013 Read Full Article
Grassley Asks EPA if Ethanol Credit Market Is Being Controlled by Wall Street
by Christopher Doering (Des Moines Register) As controversy swells over the cost of special credits tied to ethanol, Iowa Sen. Chuck Grassley asked the agency charged with overseeing the country’s renewable policy for details on what is being done
September 26, 2013 Read Full Article
Chairwoman Stabenow Calls on CFTC to Review Possible Manipulation of Renewable Fuels Market
by Greg Akagi (KansasAgNetwork) Michigan Democratic Senator Debbie Stabenow, Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, today called on the Commodities Future Trading Commission to review recent allegations about possible manipulation of the markets for
September 25, 2013 Read Full Article
Wall St. Exploits Ethanol Credits, and Prices Spike
by Gretchen Morgenson and Robert Gebeloff (The New York Times) ...But a little known market in ethanol credits has also become a hot new game on Wall Street. ...But many people believe that is what happened this year when the price
September 16, 2013 Read Full Article
A Market in Desperate Need of Transparency
by Mike Lux (Huffington Post) ...If the 2009 financial crisis taught us anything, it's that market manipulation and speculation is a recipe for disaster. Four years later, we don't seem to have learned our lesson. Wall Street has found another,
September 12, 2013 Read Full Article
Fixing Rufus: Congress, 2013 and the Renewable Fuel Standard
by Jim Lane (Biofuels Digest) ...Based on our industry sources, here’s an outline for a “change the RFS” outcome – what that might look like. We see four key elements — ethanol, drop-ins, biodiesel and the RIN system for smoothing
September 05, 2013 Read Full Article
Renewable Fuels Are Wave of the Future
by Bob Dinneen (Renewable Fuels Association/Pottstown Mercury) I am writing in response to Senator Pat Toomey’s Op-Ed that ran in The Mercury entitled “Federal regulations threaten Pa. refineries.” The Renewable Fuel Standard (RFS) is not threatening refiners across the United States because
September 04, 2013 Read Full Article
Is Ethanol’s Number Up?
by Steve Everly (Kansas City Star) ... Ethanol has so far reduced the need for petroleum in gasoline by about 7 percent, which no other alternative fuel has come close to doing. But a shift is already in the works. ... In practice it
September 03, 2013 Read Full Article
Bad Ethanol Policy Is a Job Killer
by Patrick Meehan and Pat Eiding (The Wall Street Journal) The price of EPA compliance rose 3,625% since the end of 2012. ... As a display of regulatory failure at its finest, current regulations place the compliance obligation on refiners rather than on
September 03, 2013 Read Full Article
US RINs Prices Continue Slump Despite Looming Blend Wall
(Platts) US RINs prices continued to slide Wednesday, reflecting a widespread morning market selloff and despite a later bounce after US gasoline stocks data was released. All current-year RINs assessments fell for the sixth time in the last seven sessions. ... Current-year ethanol
August 29, 2013 Read Full Article
U.S. Refiners, Plagued by RINsanity, See 'Half Step' on Biofuels
By Sabina Zawadzki (Reuters) For U.S. refiners facing a multibillion-dollar bill linked to the soaring cost of renewable fuel credits, a U.S. move toward easing biofuel mandates brought to mind the first step in breaking a bad habit: recognizing there
August 08, 2013 Read Full Article
US Ethanol Credits Soar to Fresh High
by Gregory Meyer (Financial Times) ...The credits, known as renewable identification numbers, jumped to a record $1.25 per gallon early on Monday, surpassing previous levels reached in March, according to Starfuels, a broker. US federal law requires refiners and wholesalers to
July 16, 2013 Read Full Article
Refiners Backed Against E10 Blendwall
(American Fuel & Petrochemical Manufacturers/PR NewsWire) The American Fuel & Petrochemical Manufacturers (AFPM) highlight the testimony of Valero Energy Corporation Chairman of the Board and Chief Operating Officer William R. Klesse who testified before the Senate Committee on Energy and Natural Resources
July 16, 2013 Read Full Article
ANALYSIS-New EPA Rules Could Cripple Brazil-U.S. Ethanol Trading
by Cezary Podkul (Reuters/CNBC) Importing cheap Brazilian ethanol into the United States could become much less profitable next year if a proposal by the Environmental Protection Agency to expand tough documentation and transportation rules to non-U.S. producers takes effect. The proposal,
July 15, 2013 Read Full Article
U.S. Ethanol RINs Reach Record Highs on Consumption Targets
by Mario Parker (Bloomberg) Renewable Identification Numbers for ethanol rose to record levels on concern the U.S. won’t adjust consumption targets. RINs, the credits that help the Environmental Protection Agency track whether refiners are meeting federal biofuel-use mandates, jumped 10 cents
July 11, 2013 Read Full Article
COLUMN-Biodiesel Could Ease U.S. "Blend Wall": Wynn
by Gerard Wynn (Reuters) Biodiesel could in future ease so-called ethanol "blend wall" concerns facing the U.S. transportation fuel industry, whose capacity to blend corn ethanol in gasoline is nearing its physical limit. The biodiesel industry has ample production capacity and
July 08, 2013 Read Full Article
RIN Amounts Indicate Positive Trend for Biodiesel
by John Davis (DomesticFuel.com) Environmental Protection Agency (EPA) figures for Renewable Identification Numbers (RINs) shows in 2.5 billion 2012 RINs across the biodiesel (D4), advanced (D5), and renewable (D6) categories. Of this total, just over 2 billion D6 RINs were
June 27, 2013 Read Full Article
Ethanol Outpaced by Gasoline on Concern Blend Wall to Cap Demand
by Mario Parker (Bloomberg) ...“The only thing that worries me is the gasoline demand category,” said Jason Ward, an analyst at Northstar Commodity Investments Inc. in Minneapolis. “It’s key because if you start fading on gasoline demand, you will be capped. You
May 06, 2013 Read Full Article
CME, ICE Rivalry Enters Biofuel Arena
(Reuters/Chicago Tribune) The battle between CME Group Inc. and the IntercontinentalExchange moves to the market for biofuel credits next month. CME will launch contracts to trade renewable identification numbers (RINs) on May 13, two weeks after the ICE debuts its RIN