D4 2014 biomass-based diesel Renewable Identification Numbers edged higher to 56.5cts as the market discusses a possible increase in the Renewable Volume Obligation following comments Thursday from U.S. Sen. Al Franken, D-Minn., chairman of the Senate Energy Subcommittee, after a meeting with a top White House official.
"You're on a pace to meet the current RFS mandate, but if Senator Franken is to be believed, we could get an increase," commented Jerrod Kitt, strategist for the Linn group in Chicago, Ill., adding it increases demand for 2014 D4 RINs.
In November 2013, EPA proposed an RVO for D4 at 1.28 billion gallons, the same as 2013 despite lobbying from the biodiesel industry for an increase to last year's production rate of 1.7 billion gallons. On Friday, EPA said 779.895 million gallons of qualified biomass-based diesel was produced, more than halfway in meeting this year's proposed RVO.
Myke Feinman can be reached at firstname.lastname@example.org.
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