11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
Domestically produced renewable jet fuel has been a staple of the D4 biomass-based category since 2016. The Environmental Protection Agency (EPA) shows monthly blending for all categories of renewable fuel.
In 2016, renewable jet fuel first started blending in small increments. Back then, the first six months of production totaled 1.16 million gallons and generated 1.16 million RINs. During that time each gallon of renewable jet produced one RIN.
Beginning in September of 2016, renewable jet production began producing 1.6 RINs per gallon. The move to a higher ethanol equivalency value helped prop up RIN production. Over the next six months 1.18 million gallons of renewable jet fuel was produced, generating 1.9 million RINs.
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