RINs Close at All-Time Highs

The price of renewable identification number (RIN) credits used for compliance purposes in the Renewable Fuel Standard (RFS) reached historic highs and are currently trading at their highest level in program history.  Biodiesel RINs broke through the $2 dollar barrier with the 2021 D4 RIN closing $3.25 higher at $2.02¾ per RIN.  Ethanol D6 RINs continue to trade in a very tight range to the D4.  The 2021 D6 RIN settled $2.25 higher at $1.96½.  

Ethanol RINs are shadowing Biomass-based diesel RINs, which are a ceiling for D6 price exposure. When there are blend wall concerns regarding meeting the conventional ethanol mandate, D4 RINs become the next marginal gallon to be used in order to meet overall compliance.  When this happens, any perceived shortfall in the…