The price of renewable fuel credits soared to its highest point on record early this week. Reuters says higher costs for soybean oil pushed up both renewable fuel and biomass-based credits. Renewable fuel credits for 2021 traded at $1.50 each, after trading at $1.44 in the previous session.
Biomass-based credits traded at $1.58 each, up from $1.52 during the prior session. Both of those are the highest prices since Reuters began reporting the data for renewable fuel credits in 2013 and biomass-based credits in 2014. Front-month soybean oil, which can be used as a feedstock in biomass-based fuels like biodiesel, traded at 67.71 cents per pound on Tuesday, their highest point since 2008. The credits, known as RINs, rose at the same time the U.S. Supreme Court was hearing oral arguments for a case involving the Renewable Fuel Standard, which requires refiners to blend biofuels into their fuel mix each year or buy RINs from those that do. The Supreme Court’s decision around the case will likely heavily influence the future of the RFS and biofuels.