Buyers chased LCFS offers higher on Wednesday, with stronger bids yielding a trade at $80.50 for Q4 transfer and nudging the PRIMA LCFS Index up 50 cents. LCFS credit prices have lingered around $80 since the beginning of October, with the average mid-value sitting at $80 this week.
Weekly state production data showed a 4% rise in California CARB ULSD refinery output against declining CARB gasoline production, down 7.2% WoW. In-state diesel output was up 16.6% YoY, against an 11.5% drop in in state gasoline output against year-ago levels. California’s modifications to CI pathways last month awarded diesel a higher carbon output rating, magnifying the carbon reduction effort needed to hit CI reduction mandates if diesel consumption climbs and offering potential cheer to biodiesel producers.
RFA meanwhile hammered the Oregon Clean Fuel program’s decision to use ILUC values to revise biofuel CIs upwards in its September revision proposal, recommending Oregon scrap ILUC ratings until a scientific methodology can be agreed. The CI value of biodiesel was raised more than 30gCO2e/Mj on average, with soybean biodiesel’s CI upped by 37gCO2e/Mj and corn oil biodiesel’s by 33gCO2e/Mj. Ethanol also saw a significant increase by 13.69gCO2e/Mj from the previous 68.40gCO2e/Mj.