RINs may lower biojet costs but may not be more competitive

In Washington, Airlines for America told Platts that it expects the EPA’s recent decision to allow aviation biofuels to qualify for RIN production will go a long way towards helping the fuel reach price parity with traditional jet fuel. Even though renewable jet fuel can produce RINs, jet fuel itself is still exempt from RIN obligations. That may in the end have a negative effect on biojet economics as refiners look to produce more jet fuel to reduce RIN obligations, lowering the price of jet fuel and making biojet even more uncompetitive.