Weekly LCFS Credit Transaction Volume Remains Strong in Third Quarter

Weekly LCFS Credit Transaction Volume Remains Strong in Third Quarter

California’s Low Carbon Fuel Standard (LCFS) credit volume remained well above the 2019 weekly average for the third consecutive week

Weekly credit volume of 362,388 was up 13 percent from last week and nine percent over the same weekly period last year.  The average weekly credit volume for the year increased from 197,446 to 203,337. Average weekly transactions remained at 23. Third quarter credit volume is 140 percent over first quarter volume two weeks into the new quarter and 43 percent above the same quarterly volume last year.

Trading activity was heaviest on Tuesday with 44.5 percent of the transactions taking place.  The highest average daily price was $193, which occurred on Monday. The price range credits traded in narrowed from $140.75 – $200 last week to $150 – $197 in this week’s report. The weighted-average credit price was 192.96, up slightly from $191.67. At the top of the range 250 credits traded and 12 traded at the bottom of the range. 87 percent of the credits traded at a price between $190 and $197 and one percent traded below $180.

The Jacobsen continues to expect credit volume to rise relative to last year. An additional 284 million gallons of biodiesel and renewable diesel are forecast to be produced during 2019. There were 11.18 million LCFS program credits generated during 2018 and there are 13.7 million forecast for 2019.

CARB only includes transfers that are completed in the given week. Transfers for future dates, proposed and still pending confirmation, are excluded.  CARB’s weekly report excluded 17 transfer of 96,957 credits. CARB will exclude transfers that trade at, or near, zero in price.

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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.  

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