Ethanol Blog

Open market value for 2012 biodiesel Renewable Identification Numbers, the credits used by obligated parties under the Renewable Fuel Standard—refiners, blenders and importers to show their required blending volume compliance, slipped below 60 cents this week as volume requirements are reached. B12 RINs were exchanging hands at 93 cents on Sept. 21, but prices plunged to an all-time low of 41 cents on Oct. 11. This morning, B12 RINs ranged between 50 and 55cents.

Of the 1 billion gallons of biomass-based diesel required to be blended into petroleum diesel this year, biodiesel producers had generated 844 million gallons as of September, according to the Environmental Protection Agency which administers the RFS.

"I personally deal with a number of refiners large and small and I have gotten the impression from a decent amount that they are pretty close to covering their obligation for the year," according to one trade source this morning. "Now how close is really close? Not sure but a lot of (obligated parties) haven't been in the market for awhile."

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