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July D4 RIN generation stalls

D4 biomass-based diesel RIN generation finally took a short break from the significant surge seen over the past few months, with production dropping to 313mn RINs (209mn wet gal) in July, down around 59mn RINs or almost 16% MoM, but still up 6.5% YoY.

Meanwhile EPA marginally adjusted the D4 generation numbers for each month in the first half of this year, bringing D4 RIN generation through the first seven months of 2016 to over 55% of targeted full year consumption. This is just above the 53% rate seen at the same time last year, taking into account EPA’s previously assumed RIN carry over from 2013. The D4 generation progress calculation excludes banked RINs carried over from 2015 into 2016, but assumes 2016 generation includes a 20% carry over into 2017, plus 5% annual growth in D5 generation against the D5 shortfall that D4s will otherwise need to plug. Of the July RINs generated, over 76% were supplied by domestic producers, with the rest generated by overseas EPA-certified plants.

D5 RIN generation meanwhile sat at just 15.89mn RIN gal in July, still up 195% YoY. EPA added back around 8mn gal of D5 RINs to June’s generated volume, bringing D5 RIN generation in June up to 16.45bn gal. Total YtD generation through July has contributed just over 10% of the D5 mandate set out in the RVO, below the progress level seen at the same time the year before.

D6 RIN generation dipped 3% MoM to 1.27bn RINs in July, a drop of less than 1% YoY.D6 RIN output reported so far this has year breached 52% of total annual mandated demand, less than the 55% seen at the same time last year, assuming a 20% RIN carryover from 2016 into 2017.

D3 generation increased a modest 7.74% to hit 15mn RINs during July.

 

d6 d5 d3

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