Posts by Hoekstra Trading LLC
A RIN is a tax and a subsidy that forces renewables into fuel – Part 2, the RIN subsidy
Summary This is a four-part blog series describing the renewable identification number (RIN) as a tax (part 1) and a subsidy (this part 2) that forces renewables into fuels (part 3), and how this tax-and-subsidize interpretation resolves the apparent contradiction (part 4) at the core of the legal dispute over RINs now in its 10th…
Read More30% discount on this summer’s catalyst testing program for gasoline desulfurization
Better gasoline desulfurization catalysts are available to increase production of marketable Tier 3 gasoline Seventy gasoline desulfurizers are in operation in the US today, and over 200 worldwide. Now is the time to focus on optimizing their octane/sulfur performance. For one thing, better catalysts are available that will deliver higher octane product with just a…
Read MoreA RIN is a tax and a subsidy that forces renewables into fuels — Part 1, the RIN tax
Summary This is a four-part blog series describing the renewable identification number (RIN) as a tax (this part 1) and a subsidy (part 2) that forces renewables into fuels (part 3), and how this tax-and-subsidize interpretation resolves the apparent contradiction (part 4) at the core of the legal dispute over RINs now in its 10th…
Read MoreRefiners use new technology to increase gasoline supply and reduce price
This presentation from the 2021 Gulf Coast Conference shows how one refinery is working with Hoekstra Trading and our network of top refining technology companies (e.g. Avantium, C Solutions, Topsoe, W.R. Grace, VUV Analytics, Intertek, and others) to increase gasoline supply and reduce price using 21st century engineering and laboratory methods Refiners, join our coalition…
Read MoreNew desulfurization catalysts will increase gasoline supply and reduce price
Much of the gasoline being produced in the US today is not marketable because it is too high in sulfur and/or too low in octane. With the new Tier 3 ultra-low sulfur gasoline specification now fully in place, refiners must increase severity of gasoline desulfurization which is destroying $billions per year of octane and making…
Read MoreTier 3 sulfur credit price doubles in May
Demand for Tier 3 sulfur credits caused the price to double in May. The best offer is now triple the first quarter 2022 level. This, and the current surge in octane value to record heights, were predicted in Chapter 25 from Gasoline Desulfurization for Tier 3 Compliance as signs the octane/sulfur squeeze is happening. Every…
Read MoreWatch the coming spike in Tier 3 sulfur credits
Tier 2 sulfur credits spiked 50-fold, then D6 RINs spiked 50-fold, now the Tier 3 sulfur credit spike is imminent. Don’t get caught panic buying after the credits spike. Every refining executive should have a comprehensive understanding of the technical, regulatory, and economic aspects of Tier 3 gasoline, the sulfur credit program and how they…
Read MoreThe Tier 3 investments that never occurred
See this excerpt from Gasoline Desulfurization for Tier 3 Compliance on $3 billion of capital investments needed to produce Tier 3 gasoline reliably and profitably. excerpt on Tier 3 investments Every refining executive should have a comprehensive understanding of the technical, regulatory, and economic aspects of Tier 3 gasoline, the sulfur credit program and how…
Read MoreWhy are gasoline prices so high?
We don’t have a shortage of gasoline. We have a shortage of marketable gasoline. This chart, from an Argus Media article shows the price differential between marketable (Tier 3) gasoline and unmarketable gasoline: The spike is an indicator of octane value which has skyrocketed this year taking the price of gasoline with it. The underlying…
Read MoreUS refiners face gasoline sulfur/octane pinch with Tier 3
Two key findings from Hoekstra Trading’s 3-year research project on Tier 3 (10 ppm sulfur) gasoline were: The first conclusion came from extensive pilot plant and field tests on commercial desulfurizers which showed octane loss on fluid catalytic cracking (FCC) gasoline desulfurizers for Tier 3 is typically 2.5 octane numbers versus the industry-expected 0.5 octane…
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