11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
The Environmental Protection Agency (EPA) received 12 new temporary exemption petition requests during the month of August. Of the 12, nine were gap-year petition. Gap-year requests are likely being made in hopes of establishing a year-by-year claim of having received an exemption every year since blanket exemptions were discontinued. Having this chain of command would allow refiners to get around the January 24thappellate court ruling, which stated these exemptions are to be treated as extensions from the original exemption. Once a party fails to apply, or is denied, they are no longer eligible for the temporary exemption.
The EPA small refinery exemption (SRE) dashboard shows there are 98 total SREs pending and 67 are gap-year petitions.
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