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Tips For Understanding The RINless Biodiesel Market

Posted in: Fuel and Trucking, Biodiesel


/// Guest post by contributor Jon ScharingsonRenewable Energy Group

Renewable Identification Numbers, also known as RINs, have become the standard for biodiesel blending tracking by the Environmental Protection Agency (EPA). While RINs can help companies attain important carbon credits, they are not mandatory for all levels of the supply chain.

For some customers in the marketplace, the RIN process can be arduous and cut into efficiency. To better serve these customers, Renewable Energy Group (REG) has made it a point to provide RIN-less biodiesel. Often, these are customers that cannot easily aggregate all of the RINs for each gallon they buy. Going through the RIN registration process adds expense; this extra cost is a motivating factor for many customers who prefer to purchase biodiesel without the RINs attached.

REG sells B99 RIN-less biodiesel; it gives customers an added level of flexibility. The daily changes in the marketplace can greatly affect the value of RINs, and the volatility in 2013 has been significant.

When B99 RIN-less is shipped to customers, REG retains the RIN that came with each gallon of production. To help disperse this supply of RINs, REG provides customers ― largely petroleum major customers ― with the opportunity to purchase one additional RIN with each gallon. Typically, 1.5 RINs are sold with every gallon of biodiesel, but with the residual RIN from a gallon that is sold as B99 RIN-less; those customers can purchase 2.5 RINs per gallon.

REG will also sell biodiesel with RINS to travel centers. We’ve have dedicated RINs accountants on staff, so we can coach and assist customers along the way. We can also connect customers with RINs brokers and they can walk people through RINs values and what the value propositions look like.

Purchasing biodiesel with RINs bolsters the flexibility and value proposition of the overall industry. Large travel centers will often help out diesel suppliers by providing them with RINs and suppliers tend to serve as the obligated parties.

If you buy biodiesel with RINs, you can sell them to brokers in the marketplace or directly to the obligated parties and the large oil companies. A number of our truck stop customers are already set up in EMTS System with the EPA.

RIN and RIN-less biodiesel options allow for expanded flexibility in the marketplace and provide customers at each level of distribution the choice of purchasing biodiesel that can be quickly blended, or comes with RIN paperwork that ensures EPA compliance and will allow the company to achieve a desired level of carbon credits.

/// Read more guest posts on biodiesel posts here

{Guest Post} Guest post provided by NATSO Chairman's Circle member Jon Scharingson, Renewable Energy Group. Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. With more than 210 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace. Learn more about Renewable Energy Group.

The opinions and advice given by guest post contributors are not necessarily those of NATSO Inc. The posts should not be considered legal advice. Qualified professionals should be sought regarding advice and questions specific to your circumstances.

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About the Author

Jon Scharingson

Jon Scharingson