Banked California low carbon fuel credits rose for first time in over a year, due in part to stronger than expected biodiesel credit generation

To recap yesterday’s article.  Biodiesel and renewable diesel volumes improved sharply during the fourth quarter but were not large enough to offset underperforming volumes in the first three quarters of 2018.  Biodiesel production volume was 92.2 percent of forecast, renewable diesel output was 85.2 percent. Fourth quarter biodiesel volume exceeded the quarterly forecast by 14%.

Stronger than expected fourth quarter volumes helped to drive credit generation. Stronger biodiesel, renewable diesel, hydrogen and electric credit generation helped to create a surplus of 66,815 credits during the fourth quarter, enabling the LCFS credit bank to grow for the first time in five quarters.

Biodiesel volume exceeded its quarterly forecast by 14 percent.  However, biodiesel producers used more lower carbon feedstocks than projected.  This allowed credit generation to surpass an expected 14 percent increase.  Biodiesel credit generation was up 22 percent in the fourth quarter.

Renewable diesel credit generation was up 57 percent from the third quarter but even with that increase, credit generation fell eight percent short of forecast. For the year, both biodiesel and renewable diesel missed credit generation expectations. biodiesel missed by 2.4 percent and renewable diesel by 17 percent. Some of the heavy lifting for the year surprisingly came from ethanol.  Ethanol credits exceeded forecast by 10 percent and helped to offset a portion of the credit shortfall from biodiesel and renewable diesel.

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Apr 15 (Jakarta Post)  RI to accelerate B30 program in anticipation of EU restrictions   – The government has said Indonesia will accelerate the mandatory use of 30 percent blended biodiesel ( B30 ) in anticipation of the European Union’s move to ban palm oil-based biofuel in its member countries. With the mandatory use of both B20 and B30, the domestic market is expected to absorb 9 million tons of crude palm oil (CPO). READ MORE

Apr 12 (Reuters)  U.S. EPA revives provision that could name oil refiners applying for biofuel waivers – The U.S. Environmental Protection Agency on Friday took the first step to revive part of a rule that could, if finalized, reveal the names of oil refineries which applied for exemptions from the nation’s biofuel laws.  The move is seen as a win for the corn industry, which has criticized the waiver program due to its lack of transparency. The EPA only in 2017 first began releasing the number of waiver petitions it has received and granted.  READ MORE

I always look forward to hearing from our customers.  Please feel free to contact me with any questions, comments, or suggestions you may have.  If you buy, sell, or trade any of our products, I would like to hear from you.  Bob Lane at [email protected]  847-549-3640.