RIN Amounts Indicate Positive Trend for Biodiesel

John Davis

Nicholas PaulsonEnvironmental Protection Agency (EPA) figures for Renewable Identification Numbers (RINs) shows in 2.5 billion 2012 RINs across the biodiesel (D4), advanced (D5), and renewable (D6) categories. Of this total, just over 2 billion D6 RINs were available. This analysis from Nick Paulson with the University of Illinois says it could indicate a trend that is good news for the biodiesel industry:

Current levels of available 2012 RIN stocks have not changed significantly over the past few months. However, 2013 RIN generation across the D4, D5, and D6 categories implies that these stock levels could be significantly reduced in 2013. This will provide lower RIN carryover into 2014 when mandate levels continue to rise and physical blending constraints tighten further due to the E10 blend wall. This will force increased blending of biodiesel (see here for more info), which does not face the blend wall, or increased use of higher ethanol blend rates such as E15 or E85 (see here for more info).

The analysis goes on to point out that an expected 12.3 billion D6 RINs will be generated in 2013, falling 1.5 billion gallons short of the renewable component of the RFS mandate for 2013 (13.8 billion gallons). And that’s the point the article makes in that biodiesel has an easier job making up those RIN shortages.

Biodiesel, RINS