EPA grants Gevo isobutanol right to generate D5 RINs too
In Colorado, Gevo announced that the U.S. Environmental Protection Agency has approved the pathway for isobutanol produced at Gevo’s Luverne, MN plant to be an advanced biofuel under the Renewable Fuel Standard Program. This is the first time that the EPA has approved a pathway for an advanced biofuel that uses starch from feed corn to produce an alcohol. With a partial substitution of fossil based energy sources that are currently used at Luverne with green energy sources, such as biogas, it should be possible for Gevo to achieve the 50% or greater greenhouse gas emissions reduction needed to claim the advanced D5 Renewable Identification Number according to the pathway approval.
Gevo’s isobutanol from feed corn starch currently generates D6 RINs, and with this approval, Gevo’s isobutanol could generate D5 RINs as well. D5 RIN credits have historically had greater value in the marketplace than D6 RINs, potentially making Gevo’s isobutanol more valuable in the future. Isobutanol, used as a gasoline blend stock, generates 1.3 RINs per gallon. This compares to ethanol’s 1.0 RINs per gallon, given isobutanol’s higher energy density as a molecule. Currently D5 RINs have a value of approximately $1.00 versus approximately $0.75 for a D6 RIN. Therefore, at these current values, a gallon of isobutanol would generate RIN value of $1.30 per gallon if it qualified for a D5 RIN, as compared to $0.98 per gallon under a D6 RIN, or an additional $0.32 per gallon.
Category: Fuels
