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 firstname.lastname@example.org.
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