The Biodiesel 2020 RIN Closed at an All-Time High (for its Vintage) Last Week

Unlike California’s LCFS credits, RINs have a relatively short shelf life, lasting roughly two years. The 2020 biodiesel RIN began trading shortly prior to the 2020 calendar year and has seen prices trade as low as 36.5 cents per RIN and as high as 82.5 cents.  The 2020 ethanol RIN has experienced the same volatility, with pricing as low as 13.5 cent and as high as 59.5 cents.

The 2020 biodiesel and ethanol RINs both reached their high trading mark at the end of last week. RINs will rise to incentivize production. In the case of biomass-based diesel RINs, they will also increase in value to offset a rising bean oil/heating oil (BOHO) spread. The BOHO spread did climb during the week, raising 8.8 percent to $1.36 per gallon.  The BOHO spread reached a four-week high.

RINs are at a near-term highs, but it is…