Rinsanity

Source: BY MATTHEW CHOI, Politico • Posted: Thursday, June 3, 2021

The price of RIN credits are higher than at any time during the history of the Renewable Fuel Standard due to rising demand for the agricultural feedstocks used to produce corn ethanol and biomass-based diesel fuels, according to an update from the Energy Information Administration . On May 18, corn fuel ethanol D6 RIN prices reached $1.90 per gallon and biomass-based diesel D4 RIN prices reached $2 per gallon — both all-time high daily prices under the program — according to EIA.

As of Friday, corn fuel ethanol D6 RIN prices have both shot up by by 129 percent since the beginning of the year, while biomass-based diesel D4 RIN prices have increased 96 percent. EIA primarily attributed the increased prices to higher costs for corn and soybean oil, which are on the rise amid increased demand from China and concerns about future domestic supply, the agency said.

|