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Americas Biodiesel Ethanol US

LCFS hovers below historic highs

California LCFS credits traded at $97, marking a further softening from the previous week’s historical highs. The sell side today began offered in a range between $100 and $105, but was indicated pegged below $100 by the close. Buy side indications stayed in a range between $95 and $97, with refiners among the interests shown as other participants hang back to gauge the lifespan of current valuations. PRIMA’s LCFS Index settled at $97 on Tuesday, marginally down by 5 cents from Monday’s session.

The last offer indication of biodiesel with 50/50 BTC destined for California was heard discussed at a discount of mid 30 cents/gal to heating oil, which settled at $1.47/gal today. At current LCFS price of $97, the renewable diesel with a CI value of 15.1 will generate LCFS incentive of $1/gal approximately, compared with the D4 value settled at 58 cents.

Fresh CARB data showed liquidity dip in October, with credit transfers down 42.4% MoM to 129,000t traded. The slackening volume accompanied a surge in credit prices, as the maximum trading prices surged to $85, up by $10 from maximum price of last month.

 

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