PRIMA’s California LCFS Index remained stalled near the top end of its strong recent rally on Thursday, finishing the session marginally down at $79.50 for Q4 transfer after credits for Q4 transfer changed hands on Wednesday at $80 and $81.
Even so credit prices remain nearly four times as high as they were in mid-June before the dramatic 2015 upswing began. Sustained strength in credit prices will offer particular help to lower CI fuels’ attractiveness to California buyers looking to meet CARB’s CI reduction targets.
As of October 6, nine biodiesel plants in California served nameplate production of 83 mn/yr, up by 24 million from June as two new plants became operating since then. According to EIA, the west coast PADD 5 region boasts a total in-house biodiesel capacity of 191mn gal produced by 14 separate facilities, according to EIA data. PADD 5 biodiesel production is concentrated in Washington State which boasts 107mn gal/yr of capacity within easy reach of northern California’s CI reduction requirements.