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Renewable diesel production breaks records with RINs diving to $1

As predicted Aug RINs biomass generation reaches a yearly 5.04 Billion Gal or 98% of this years mandate with 57% of this total accounted for by Renewable Diesel (HVO). There is no question that this will cause a major shift in economics for Biodiesel producers and especially the more vulnerable ones in conventional Biodiesel. However, it should be noted that despite much lower RINs values, the rise in Heating Oil values (Diesel) is actually helping margins for all producers. So we can most probably expect a much longer run in this phenomenon judging by the current state of Supply and demand for Diesel. The rise in Diesel has been accompanied by a pre-harvest drop in Bean oil values which has also helped. This improved margin situation is reflected by a 50 cents per gallon ($150/mt) improvement in the biodiesel crush margin in the last 3 weeks!

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