California LCFS trading exploded back into life on Thursday with a slew of deals confirming a price break to firmly above $100. Four deals were done at levels between $101 and $105, leaving the market $100 against $105 at the close. In total more than 65,000t of credits have changed hands so far this month. PRIMA’s LCFS Index finished Friday at $105, bringing the week’s average mid-market value to $100.4.
Midwest biodiesel producers meanwhile were buoyed by their midweek talks with Washington policymakers over the prospects for a renewed $1/gal tax credit shifting to producers rather than blenders. The move would disadvantage the current sizeable imports of biodiesel and renewable diesel into the west coast.
“All of the members of Congress, the Senators and the staff we met with yesterday were extremely supportive of extending the biodiesel tax incentive, as they always have been,” Iowa Biodiesel Board executive director Grant Kimberley told PRIMA.
“Importantly, they are also behind the idea of changing the incentive from a blenders’ credit to a producers’ credit to use our tax dollars wisely,” Kimberley added, pointing in particular to the efforts of Iowa Senator Grassley to amend the tax credit legislation in favor of Midwest plants.