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PRIMA California LCFS index treads water after flatter week

PRIMA’s California LCFS index finished Friday at $79.50, bringing the week’s average mid-market value to $79.70, virtually unchanged WoW. Friday’s offer indications pulled back to between $80-85 as buyers held off in the upper-$70s. Earlier in the week Q4 transfer was seen changing hands at $80. October’s month to date average for LCFS credits sits at $79.08 so far.

Fresh September EMTS RIN data released this week showed a slowdown in EPA RIN generating biofuel imports. D4 RIN generation from imports brought in by domestic fuel suppliers fell nearly 30% to 32mn, while RINs generated under the foreign generation EMTS category for September slipped more than 42% to 14.5mn. D6 RIN generated by importers fell to 5.59mn, down nearly 80% MoM in September.

Finnish refiner Neste meanwhile said on Friday it has further expanded the California footprint for its renewable diesel after the city of Oakland agreed to convert its entire municipal fleet to Neste’s HVO from the beginning of October. Oakland runs a 250-strong diesel powered municipal fleet consuing around 230,000gal/yr of renewable diesel, according to Neste.

As the domestic biodiesel producers still suffer from uncertain tax credit schedule, world leading renewable diesel Neste expand its footprint to US as the city of Oakland, California planned to convert their entire fleet to renewable diesel to fill up all its vehicles in the beginning of October 2015. Oakland operated 250 diesel-powered vehicles that consume 230,000 gallons of renewable diesel per year, according to Neste. Neste’s renewable diesel imports have surged into California this year hitting 67.96mn gal in the seven months until the end of July, compared to just 10mn gal shipped in 2014. Neste boasts around 600mn gal/yr of renewable diesel capacity at purpose built refineries in Singapore, Rotterdam and Finland.

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