CA Crude is Getting “Dirtier” and Producing More LCFS Deficits

LCFS credit volume continued to pump the brakes after reaching record volume two weeks back. Weekly volume of 269,079 was 72 percent below the prior week and 41 percent under the 2021 weekly average of 455,859.  Fourth quarter volume is 119 percent above third quarter volume and 74 percent over Q4 of 2020. There were 33 transactions during the week, down from 110 the week before. The weighted average price paid per credit increased $2.13 to $183. Of the 33 transactions posted, Type 1 transfers totaled 46,034 credits and Type 2 transfers accounted for 233,045 credits. Type 1 transfers accounted for 39 percent of the transactions and 17 percent of the volume.

Type 1 transactions are executed within 10 days of an agreement. Type 2 transactions are executed beyond 10 days of a transfer agreement. Type 1 transactions may provide a more accurate indication of market conditions and price…