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Oct 25, 2012Explorer
Contacts in the refining business tells me that they prefer (where possible) to pay for biodiesel credits from people who are making the stuff and selling it as B100 or >B20.
That way, they can use the dino oil made diesel, which is cheaper than biodiesel in many parts of the US, and cause them no / few problems.
Unfortunately, the market got shut down after massive fraud was discovered... probably leading to more biodiesel being blended this year due to the absence of available credits for sale:
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6563368
That way, they can use the dino oil made diesel, which is cheaper than biodiesel in many parts of the US, and cause them no / few problems.
Unfortunately, the market got shut down after massive fraud was discovered... probably leading to more biodiesel being blended this year due to the absence of available credits for sale:
EPA has declared invalid 140 million RINs representing about 930,000 gallons of biodiesel. Oil companies use the credits to demonstrate compliance with the Renewable Fuel Standard, which requires them to blend a certain amount of ethanol, biodiesel and advanced biofuels into US motor fuel supplies every year.
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6563368
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