Biofuels compliance credits rally amid battle over U.S. mandates

(Reuters) Prices in the niche market for biofuels compliance credits jumped to three-year highs on Monday as traders fretted about supplies because of higher U.S. government mandates to increase the use of biofuels next year. Trading in the opaque market for Renewable Identification Numbers (RIN) – the paper credits that can be bought and sold to meet government requirements for biofuels – has picked up in recent days. Expectations have mounted that the government’s plan for biofuels use through 2017 will potentially use up inventories. Oil importers and refiners use the credits to show they are meeting annual standards for the amount of ethanol and biodiesel to be blended with gasoline and diesel. The credits are generated with each gallon of renewable fuel produced. The flurry of activity in the market was just ahead of Monday’s deadline for public comment on the Environmental Protection Agency’s latest plan for biofuels use, which had received over 40,000 comments by Monday afternoon, according to a government website. Prices of renewable fuel (D6) credits jumped as much as a nickel to a high of 99 cents apiece on Monday, up from 94 cents last week, to the highest since August 2013. In 2013, RINs

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Source: CTRM Center

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