Ethanol Blog
Myke Feinman Refine Fuels Reporter

Friday 09/14/12

Small Biodiesel Producers Still Face RIN Discounting

Ten months after the disclosure of major fraud in the biodiesel Renewable Identification Number program, RINs from small biodiesel producers continue to sell at a steep discount to those from larger producers.

"We kind of got the raw end of the deal," said Jed Smith, operations manager for Rio Valley Biofuels in Anthony, N.M., which produces 1.5 million gallons annually. Smith said he has negotiated RIN sales this year at 5 cents to 8 cents discounts to larger producers, while discounts have been as much as 12 cents.

2012 biodiesel RINs have been hovering at $1 apiece this week, according to trade sources. "So let's say big producers are at $1," a trade source said Thursday. "If I was buying product with RINs from a small producer, I would probably only pay 90 cents tops."

Myke Feinman can be reached at myke.feinman@telventdtn.com.

Posted at 2:15PM CDT 09/14/12 by Myke Feinman
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
April  2015
S M T W T F S
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30      
Subscribe to Ethanol Blog RSS
Recent Blog Posts
  • Argo, PNW Spot Ethanol Prices Nudge Higher in Thin Trade
  • An Economic Case for Ethanol
  • Spot Ethanol Gains at Argo, Steady in New York Harbor
  • Grains Council Works to Open Cuban Markets
  • Ethanol Production Sliding Lower
  • Spot Ethanol Advances After Bullish Weekly Supply Report
  • D6 RINs Extend Higher; Spot Ethanol Prices Flat
  • D6 RINs Edge Higher While Spot Ethanol Prices Ease
  • Corn Prices Remain Range Bound
  • DDGS Rise to Highest Level in Five Months
  • Spot Ethanol Prices Weaken Amid Sluggish Demand
  • Gasoline Stocks Change Direction
  • Spot Ethanol Prices Mostly Flat in Lackluster Trade
  • Spring Buying in the Air
  • DDG Prices Rise Slightly in Slow Week of Trade
  • Ethanol Drawing From Strong Gasoline Demand
  • Grains Council Targets Caribbean Markets
  • Spot Ethanol Prices Mixed in Thin Trade
  • April 1st Buying Frenzy on Supply Reductions
  • Bullish EIA Supply Report Spurs Rally for Ethanol Prices