AMP Americas announced today it traded the first ever physically delivered Renewable Identification Number (RIN) futures contract on Nodal Exchange yesterday.
The trade of D3 RIN futures by AMP and an anonymous party was the first made on Nodal Exchange, which launched eight new RIN futures and options contracts yesterday. Nodal listed D3, D4, D5 and D6 RIN futures along with complementary RIN options contracts. The new contracts mark the latest expansion of the renewable fuels products group on Nodal, which offers the largest suite of listed environmental contracts in the world. The new environmental products were designed by IncubEx, which develops tradable environmental contracts with Nodal Exchange. Amerex Brokers LLC served as the broker to the first RIN trade.
“We’re excited to be a part of the first RIN futures contract trade on Nodal,” said RD Ahlers, Chief Financial Officer at AMP. “As a renewable fuel producer and marketer, we are constantly seeking diversification in our environmental credit price risk management strategies. The addition of physically delivered RIN contracts on Nodal provides a great alternative for us moving forward.”
“The first trade is a validation of listed physically-delivered RIN futures and options contracts,” said Nathan Clark, Managing Director at IncubEx. “We’re gratified to see market participants enter the RIN futures markets on day one and look to build this market in the weeks and months ahead. It’s an exciting and compelling time to be in the RIN markets.”
RINs are traded nationwide under the Environmental Protection Agency’s Renewable Fuel Standard, which allows renewable fuel producers, market participants and obligated parties to generate, buy and sell RINs. RINs are essentially ID numbers or tickets that are attached to each gallon of biofuel blended into transportation fuels in the United States.
RINs complement other renewable fuels contracts developed by IncubEx and Nodal: California Low Carbon Fuel Standard and Oregon Clean Fuels Program futures and options. The new RINs contracts cover the most actively traded RIN markets in the United States. The RIN contracts are aligned with their designated fuel types: D3 RINs for cellulosic biofuels, D4 RINs for biomass-based diesel, D5 RINs for advanced biofuels such as sugarcane ethanol and D6 RINS for renewable fuels such as corn ethanol. In 2019, nearly 20 billion RIN credits were generated across the four RIN markets.
“We are excited to have launched the first physically settled RIN contracts and are happy that trading has now commenced,” said Paul Cusenza, Chairman and CEO of Nodal Exchange.
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About AMP Americas
Founded in 2011, Amp Americas is a pioneer in the renewable transportation fuel industry. Amp has eliminated over 600,000 tons of CO2 equivalent emissions, equivalent to taking 100,000 cars off the road for one year. The company builds and operates on-farm RNG projects, sources and markets RNG to supply fuel to some of the country’s largest fleet customers, and partners with dairy farmers across the country to bring more ultra-low CI gas to market. The company currently operates four projects, that includes the largest on-farm biogas to vehicle fuel cluster in the country, which produce over five million gallons of 100% renewable natural gas from dairy waste annually. Amp Americas received the first dairy waste-to-vehicle fuel pathway certified by the California Air Resources Board (CARB) and was awarded a Carbon Intensity (CI) score of -254.94 gCO2e/MJ, then the lowest score issued by CARB. Visit www.ampamericas.com.
IncubEx is an incubator for exchange traded products, services, and technology solutions. At its core, IncubEx is a product and business development firm. The company works in conjunction with its global exchange partner, European Energy Exchange (EEX), Nodal Exchange and other leading service providers and stakeholders to design and develop new financial products in global environmental, reinsurance, and related commodity markets. The company has a specific focus on innovation and continuous improvement of products and services, including technology, trading solutions, and operational efficiencies. The IncubEx team is led by former key Climate Exchange executives and is uniquely positioned to capture these opportunities with its partners. The company was founded in 2016 and currently has offices in Chicago and London.