RIN prices pressed lower over the course of June as record D4 RIN generation and bearish expectations for the finalized ‘Set Rule’ weighed on the D4 and D6 markets. The 2023 vintage D4 RINs found support early in the month from the weakest BOHO spread in over four months. Yet strength proved short-lived as the EPA delayed the release of the final ‘Set Rule’ by one week to June 21. The delay—which was implemented to give lawmakers more time to consider available data—prompted heavy selling on D4 and D6 RINs.
- The EPA delayed by one week the release of the final ‘Set Rule’ to June 21 in a court notice with Growth Energy. The agency will not seek additional extensions to the deadline.
- The Biden administration plans to boost the advanced RIN requirement in the final ‘Set Rule’, yet not by the volumes requested by biodiesel producers, Bloomberg reported citing unnamed sources.
- The EPA will cut the eRIN program from the final ‘Set Rule,’ Reuters reported citing unnamed sources. The eRIN program carved out substantial growth in the cellulosic RIN category by allowing auto manufacturers to earn the credits for fueling EVs.
- May RIN Generation came in at an all-time high of 2.11 billion driven by fresh record D4 RIN generation of over 750MM credits. Domestic and foreign renewable diesel accounted for roughly 59% of total D4 generation.
- Total D6 generation came in at 1.28 billion credits taking the total for the first five months of the year to 6 billion RINs.