ENVIA Energy applies for D7 RIN generation

In Oklahoma, Velocys announced that ENVIA Energy believes that fuel produced at its Oklahoma City gas-to-liquids plant has met the necessary requirements to be submitted for qualification under the Renewable Fuel Standard (RFS) in the US. As a result, the facility has submitted a certain number of RIN (Renewable Identification Number) credits to the US Environmental Protection Agency’s (EPA) registration system.

The process used at ENVIA makes a drop-in fuel that is made from renewable biogas and pipeline natural gas. Such a process is approved by the EPA for the highest value RINs under the RFS as it delivers the most significant greenhouse gas reductions called for under the program. Throughout 2017 the type of RIN (D7) that would be produced at ENVIA, based on its specific feedstock mix, traded above $2.4/gallon. For a fuel produced exclusively from renewable feedstock, such as at the biorefinery Velocys is developing in Mississippi, this equates to RIN values above $4/gallon throughout 2017.

Subject to confirmation of the pathway compliance it is expected that all necessary processes to trade the generated D7 RIN credits for maximum value will be completed in Q1 2018. A significant contribution of the revenues of the plant could be derived from the ongoing sale of these RINs.