Platts to assess cellulosic, advanced biofuel RIN from January 3, 2011

Following a period of industry feedback, Platts will launch two Renewable Identification Number (RIN) credit assessments for cellulosic biofuel and advanced biofuel for the calendar years 2010 and 2011 effective January 3, 2011.

A cellulosic biofuel RIN is a number issued by the US Environmental Protection Agency for the purpose of tracking cellulosic biofuel and advanced biofuel throughout the supply chain. Refiners, importers and blenders, called "obligated parties," use them to show the EPA they have fulfilled their mandated government use of cellulosic and advanced biofuel. If the obligated party has not used enough physical cellulosic and advanced biofuel, it can satisfy the quota by purchasing RIN credits, commonly referred to as RINs.

The assessments for cellulosic and advanced biofuel-specific RIN credits will run concurrently to Platts' existing RIN credit assessments for ethanol and biodiesel. The calendar year cellulosic and advanced biofuel RIN credit assessments will reflect the price per renewable fuel credit (RIN) and typical volume of 1 million RINs per trade.

According to the EPA, calendar-year RINs expire two years forward on the last day of February. For example, all calendar-year 2010 cellulosic biofuel RINs will expire on February 28, 2012. However, Platts will roll to the next prompt year on the first business day of January, two years forward from the calendar year when the RINs are issued. For example, on January 3, 2011, Platts will only assess the 2010 and 2011 cellulosic biofuel RIN, while the last day for the 2010 RIN assessment would be the last business day in 2011.

Platts will publish these RIN assessments in Platts Refiner, US Marketscan, Platts Dispatch category FS, and on Platts Global Alert page 597.

Send questions and comments to americas_products@platts.com and pricegroup@platts.com.