RIN costs falling for oil refiners just as ethanol production gets more interesting

November 4, 2013 |

In Texas, CRV Refining expects its final 2013 RIN bill to be under 190 million, down from the up to $250 million it originally anticipated. Its third quarter bill was $54.7 million, down from $65.5 million spent during the second quarter. Valero has also wound down its expectations for RIN costs this year, with $500 million seen for 2013, down from $600 million. Third quarter RIN costs were $185 million, up from $70 million during Q3 last year.

Ethanol production is ramping up at Valero, however, to 3.4 million gallons per day during the third quarter, compared to just 995,000 gallons per day during Q3 last year. Ethanol income has improved even, helping to erase losses elsewhere due to poor fossil fuel margins. Third quarter ethanol operating income was $113 million compared to $73 million during the same period last year.

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Category: Fuels

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