RIN Markets Background
Learn more about how the US RINs market is helping reduce petroleum-based fuels with biomass-based diesel, cellulosic biofuel and other eligible fuels.
US RIN Markets
The US Renewable Identification Numbers (RINs) market is a nationwide program to replace or reduce petroleum-based fuels such as gasoline and diesel with eligible fuels such as biomass-based diesel, cellulosic biofuel, advanced biofuel and conventional renewable fuel.
Launched in 2005 and amended in 2007, 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 electronic certificates that are attached to each gallon of biofuel blended into transportation fuels.
IncubEx partnered with Nodal Exchange to create the first-ever physically delivered RIN futures and options contracts that offer customers instruments to hedge or find opportunity in these markets.
How the RIN program works
There is a nationwide marketplace for RINs. RINs are created in the EPA Moderated Tracking System (EMTS) for renewable fuel production. Once the renewable fuel is blended with a non-renewable fuel, the RIN status changes within the EMTS to separated and may trade independently from the fuel. Eventually RINs are acquired by obligated parties and submitted for compliance.
RINs may be retired for compliance or banked from one compliance year to the next. Compliance with the program must be demonstrated on March 31st for the prior year.
Key RIN Elements
- Each RIN carries a unique 38-digit EPA ID that provides
details such as where it was generated, fuel category,
production date and other identifying information
- RINs are created, tracked and retired within the EMTS tracks
RINs and transfers
California LCFS Market
California LCFS Product
California LCFS Program