Ethanol Blog

Spot trades of biodiesel without Renewable Identification Numbers attached is on the rise, trade sources said, primarily to avoid RIN price volatility.

"Everything that is actually trading is RINless," one trader said Friday morning.

RINs are credits used to show compliance with the Renewable Fuel Standard, submitted by obligated parties -- refiners, blenders and importers -- to the Environmental Protection Agency. RINs may be detached and sold separately from the fuel after blending into petroleum diesel.

"RINless sales have been going on for quite some time now," another trade source said. "A lot of blenders don't want to mess with the RINs. There's too much of a headache with the volatility of RIN prices."

2013 D4 biomass-based diesel RINs were pegged at 35.25 cents Friday morning, up from 29.5 cents last week, but substantially down from their peak at $1.45 July 18.

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

(AG)

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