Current Market Conditions, Blend Wall Concerns, RFS Reset

Biodiesel RINs are up two percent from last week and 171 percent above a year ago.  Ethanol RINs are two percent higher this week and trading 213 percent over values from a year ago. Uncertainty surrounding renewable volume obligations continues to elevate RIN Values.  Blend wall concerns within the implied ethanol mandate could mean significant volume requirements may fall to the D4 biodiesel/renewable diesel category. 

The EPA is obviously concerned.  2021 Renewable Volume Obligations (RVOs) were due to be released in November of 2020 and are still outstanding today.  It appears the EPA is struggling to find a way follow statutory guidelines while attempting to promote volume requirements that will fall within the 10 percent blend wall. Tools the EPA can use include the continued use of the cellulosic waiver, a general waiver for the program, a biomass-based diesel…