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Agricultural feedstock costs drive RIN prices to all-time highs

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By U.S. Energy Information Administration

June 02, 2021

Advanced Biofuels Biogas 

The prices of RIN credits—the compliance mechanism used for the RFS program administered by the U.S. EPA—sharply increased through April of this year, and they are now higher than at any time during the 13-year history of the RFS program.

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NGVAmerica and the RNG Coalition on June 2 announced that California fleets fueled with RNG achieved carbon-negativity for calendar year 2020. RNG accounted for 92 percent of all on-road fuel used in natural gas vehicles in the state last year.

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The U.S. EPA is seeking nominations for its Mobile Sources Technical Review Committee, including nominations for individuals who have experience related to renewable fuels, biofuels and clean energy.

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President Biden on May 28 released his proposed budget for fiscal year (FY) 2022. The budget includes proposed support for biofuels; biorefinery, renewable chemical and biobased product manufacturing; renewable energy; and sustainable aviation fuel.

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The DOE on June 2 announced a partnership with the governments of Denmark and Norway and others to accelerate efforts to set international shipping on a course to achieve zero emissions, including through the use of biobased hydrogen fuels.

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Neste has announced that its renewable gasoline is now being tested for commerical use. The company's renewable gasoline currently achieves a 65 percent GHG reduction, with plans to increase emissions savings to 90 percent.

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The U.S. Energy Information Administration released data on May 28 that shows 20.577 billion gallons of U.S. biofuel production capacity was in place in March, down slightly from 20.64 billion gallons in February.

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Vertex Energy Inc. on May 26 announced it has entered into a definitive agreement to acquire an oil refinery located in Mobile, Alabama. The company plans to convert a portion of the facility to renewable diesel production.

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Shell Aviation and American Express Global Business Travel announce that they will collaborate on an alliance for making sustainable aviation fuel (SAF) available. The parties will design a model aimed at increasing the supply and use of SAF.

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Technip Energies has been awarded two contracts by Neste for work on the development of their renewables production platform in Rotterdam, the Netherlands, as part of the existing partnership agreement between Neste and Technip Energies.

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Aemetis Inc. announced May 26 the grant of a second patent for technology exclusively licensed to Aemetis that enables the production of low carbon intensity renewable fuels from waste wood feedstocks.

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Together, Topsoe and Preem have concluded the revamp of Preem's Gothenburg refinery in Sweden. The facility can now co-process up to 85 percent renewable feedstock, up from a previous 30 percent renewables.

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Sens. Joni Ernst, R-Iowa, Chuck Grassley, R-Iowa, and Reps. Randy Feenstra, R-Iowa; Ashley Hinson, R-Iowa; and Mariannette Miller-Meeks, R-Iowa, sent a letter to President Biden on May 25 urging him to uphold his promise to support biofuels.

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Sens. Deb Fischer, R-Neb., and Tammy Duckworth, D-Ill., on May 25 introduced the bipartisan Renewable Fuel Standard Integrity Act, which aims to bring additional transparency and predictability to the U.S. EPA's SRE process.

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Legislation introduced in the both the U.S. House of Representatives and the U.S. Senate on May 25 aims to extend the current blenders credit for biodiesel and renewable diesel for three years, through the end of 2025.

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LanzaTech, with partners from the University of Michigan and Oak Ridge National Laboratory, announced May 18 that it was awarded $4.1 million in funding from ARPA-E for its carbon negative chemical production platform.

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The U.S. EPA has released data that shows 1.57 billion renewable identification numbers (RINs) were generated under the Renewable Fuel Standard in April, up from 1.06 billion generated during the same month of 2020.

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The U.S. EPA on May 21 published a final federal plan for existing MSW landfills operated by any state, tribe or locale that has not submitted a satisfactory plan to reduce emissions of landfill gas in accordance with the agency's 2016 NSPS.

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The USDA on May 20 published a progress report on climate-smart agriculture and forestry (CSAF) that reflects initial conversions with stakeholders on how the agency should develop its CSAF stategy, including the need to support bioenergy.

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Air bp has confirmed an agreement for its first sale of sustainable aviation fuel (SAF) at Munich Airport (MUC/EDDM). A business aviation operator will start to purchase SAF from the beginning of June.

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Aemetis Inc. has been notified of a grant from the U.S. Forest Service toward the commercialization of a patented process that extracts cellulosic sugars from waste orchard wood, waste forest wood, and other biomass.

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The U.S. EPA on May 20 published updated small refinery exemption (SRE) data, reporting that two additional SRE petitions have been filed for RFS compliance year 2020. The agency also changed the status of three previously filed SRE petitions.

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Rep. Brad Schneider, D-Ill., on May 20 introduced the Sustainable Skies Act, which aims to create a tax credit to encourage blending of sustainable aviation fuel (SAF). The credit's value would be based on GHG emission reductions.

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Aemetis Inc. announced on May 19 that its Aemetis Biogas subsidiary reached a significant milestone by starting construction of the dairy biogas cleanup and compression unit for the Aemetis Biogas Central Dairy Digester Project.

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Amp Americas on May 18 announced a deal with Equilibrium and Green Gas Partners to operate and manage their dairy RNG project in Maricopa, Arizona. The project, in operation since 2018, processes waste from 30,000 dairy cattle.

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The U.S. Court of Appeals for the Tenth Circuit on May 19 issued an order vacating three small refinery exemptions (SREs) approved by the Trump administration on Jan. 19, less than 24 hours before President Biden's inauguration.

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Reps. Jim Costa, D-Calif., and David Valadao, R-Calif., on May 17 introduced the Biodiesel, Renewable Diesel and Alternative Fuels Extension Act of 2021, which would extend and phase down the existing tax credits for these fuels.

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Newly released data from the California Air Resources Board, shows that renewable diesel and biodiesel fuels deliver the state's biggest reduction in transportation-related sources of greenhouse gas (GHG) emissions.

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Greenlane Renewables Inc. has announced that its wholly-owned subsidiary, Greenlane Biogas North America Ltd., has signed a contract valued at approximately $9.8 million (US$8.1 million) for supply of equipment for a new RNG project in the Midwest.

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Velocys provided an update on its proposed commercial-scale U.K. and U.S. biorefinery projects in its 2020 financial report, released on May 17. The company also discussed an agreement that could allow its technology to be deployed in Japan.

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