As reported August 29, 2016 in The Barrel blog by Janet McGurty, Senior writer, oil, S&P Global Platts.
The system devised to force compliance with the US Renewable Fuel Standard appears to be backfiring, forcing refiners to spend more on buying increasingly expensive credits than actually blending renewables into the nation’s transportation fuel.
While renewable fuel advocates see RINs as a tracking tool needed to ensure RFS compliance by refiners and blenders, it does not provide the financial stability fledgling renewable fuel producers need.
“I think when you have RFS, you have to make sure people are complying,” said Wayne Lee, CEO of Lee Enterprises, the world’s largest biofuel consultant in an recent interview with Platts. “But I would certainly be open to a way other than RINs.”
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