Current-year D4 RINs at highest level since December 13

New York — Current-year D4 Renewable Identification Numbers reached a five-month high Wednesday amid support from news out of Washington.

S&P Global Platts assessed 2020 D4 RINs at 56 cents/RIN, a level not seen since December 13, 2019.

RINs crashed to 39.50 cents/RIN by the end of December as Congress reinstated the $1/gal biodiesel blender's tax credit, increasing demand for the biofuel.

D4 RINs have climbed steadily since the beginning of May as market participants expect the US Environmental Protection Agency to release proposed 2021 biofuel blending mandates in the coming weeks.

The proposed volumes are expected to rise from the 2020 mandated volumes, according to Platts Analytics.

Some support also came as market participants expect the EPA may not grant as many small refinery exemptions as in past years, keeping biofuel demand consistent with mandated volumes.

The US Environmental Protection Agency issues a RIN to track renewable fuel usage throughout the supply chain.

Refiners and importers -- called "obligated parties" – use them to show the EPA that they have fulfilled their mandated government use of renewable fuels. If the obligated party has not used enough physical product, it can buy RINs to satisfy the quota.