EcoEngineers: don't take discounts for your RINs
“Today, if anyone is still telling you that you have to take a discount for your RINs, they are not working hard enough for you.” This is a quote from Shashi Menon, a managing partner at EcoEngineers, which announced this week that RINs verified through its verification program are being placed into 2013 RIN supply agreements at Tier 1 pricing levels.
“Due to the premier brokerage services provided by RINAlliance, smaller producers, who hitherto had to take a discount, are now seeing market pricing for their RINs,” Menon says.
EcoEngineers stated that biofuel producers in enrolled in its quality assurance plan are quickly finding out that the 130 blenders and jobbers in the RINAlliance program are potential downstream customers for their wet gallons.
“These connections are made at a regional level,” Menon says, “and the RINs and gallons from biofuel plants find a home with petroleum distributors who have very high expectations of the compliance status of the products they are taking.”
EcoEngineers says that the quality control mechanism of EcoEngineers' RIN QAP allows RINAlliance members to blend and market RINs from smaller producers at price points commanded by larger, branded producers.
Isolated, but damaging, RIN fraud cases plagued the industry in 2012 and forced smaller biodiesel producers to sell their RINs at discounts of 10 to 20 cents below what larger producers were fetching.
“RINAlliance believes that it is imperative that the RIN be completely vetted and that we work across industry lines to make the program work,” said Jeff Hove, vice president of RINAlliance. “The RFS will not survive unless petroleum marketers can access quality renewable fuels at a price competitive enough to incentivize continued blending. This is the purpose of the RIN credit. Not only are we reducing CO2 emissions under the RFS, we are also supporting our local economies in the process. The program works.”
In other RIN verification program news, Genscape formed a strategic partnership with Progressive Fuels Ltd., an independent broker in the physical and financial renewable fuel markets. According to Genscape, the new partnership lays the groundwork for a streamlined, more transparent way to trade verified RINs in the renewable fuels market. To read more about the Genscape partnership with PFL, click here.