Banked RINS could offset more than 900 million bushels of corn
University of Illinois economists estimate 2.45 billion gallons worth of renewable identification numbers (RINs) are currently banked and available to apply to the mandated volumes in the renewable fuels standard (RFS). This translates to approximately 960 million bushels of flexibility in corn-for-ethanol demand, assuming an ethanol yield rate of 2.75 gallons per hour.
The analysis also takes a look at RINS pricing, which general declined through the first six months of the year, reaching a 1 cent per gallon low in mid-June. Though the RINS value has more than quadrupled to a 4.65 cent per gallon high on July 19, “it is important to keep in mind that the level is still relatively low,” the report says.
For the complete analysis and charts showing the trends, please click here.