05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
PBF Energy and Delta Lower RIN Obligations while CVR Energy Builds Debt
The Nations Renewable Fuel Standard requires billions of gallons of renewable fuel to blended with gasoline and diesel within the transportation sector each year. Obligated parties can either choose to blend renewable fuels in with the fuel they produce, or purchase RINs on the open Market.
A renewable identification number (RIN) is used for compliance and is the “currency” of the RFS program. Three large, obligated parties have taken the position of “betting” on the RIN market over the past two years, banking on the prospect of lower RIN Prices in the future. Over this time, compliance obligations to ballooned to $2.3 million at the end of the third quarter in 2021.
Fourth quarter financial reporting shows PBF Energy and Delta Air Lines worked to reduce their debt, while CVR Energy added to theirs. All three companies were hoping RIN…