Posts by Hoekstra Trading LLC
RINatomy Part 6 – The RIN As A Nested Structure
The Renewable Identification Number (RIN) is a nested structure. Anatomy noun, anat·o·my ə-ˈna-tə-mē a study of the structure or inner workings of something This series has described the RIN as a subsidy, a tax, a mandate, an asset, and an option, all in one package. That makes the RIN by far the most complex environmental…
Read MoreRINatomy Part 5 – The RIN As A Contingent Claim
The Renewable Identification Number (RIN) is an option. Anatomy noun, anat·o·my ə-ˈna-tə-mē a study of the structure or inner workings of something Read other posts in this series RINatomy – Quoting Wikipedia, In finance, a contingent claim is a derivative whose future payoff depends on the value of another “underlying” asset. Wikipedia It is a…
Read MoreRINatomy Part 4 – The RIN As An Asset
A Renewable Identification Number (RIN), in addition to being a subsidy, a tax, and a mandate, is a financial asset. Anatomy noun, anat·o·my ə-ˈna-tə-mē a study of the structure or inner workings of something Read other posts in this series RINatomy – A coupon is not considered an asset. Neither is a sales tax, or…
Read MoreRINatomy Part 3 – The RIN As A Mandate
RINs come in different categories, some of which have associated with them a mandated annual volume of biofuel that, by law, must be supplied to the U.S. market. Anatomy noun, anat·o·my ə-ˈna-tə-mē a study of the structure or inner workings of something Read other blogs in this series: RINatomy: The D4 RIN is designed to…
Read MoreBaby the RIN Must Fall Part 3 – The Odds and Timing of a Potential RIN Price Crash
An edited version of this post was published on the RBN Energy Daily Blog Aug 30, 2023. Read other blogs in this series Baby The RIN Must Fall – U.S. production of hydrogenated renewable diesel (RD), which is made from soybean oil, animal fats and used cooking oil, is growing faster than expected. That may…
Read MoreWelcome to the Future – Part 3, With Tier 3 Costs Sky-High, U.S. Refiners Consider Investments, Alternatives
When the price of the Tier 3 sulfur credit hit a new high of $3,600 in October 2023, this tradable sulfur credit moved from the background to center stage in refining circles. That’s because the $3,600 price marked a 10-fold increase over 2 years and translated to a Tier 3 compliance cost of $3/barrel for…
Read MoreRINatomy Part 2 – The RIN As A Tax
A Renewable Identification Number (RIN) is an environmental credit that is part of a price control system that manipulates the prices of fuel components to force otherwise non-economic biofuels into the US fuel supply. Anatomy noun, anat·o·my ə-ˈna-tə-mē a study of the structure or inner workings of something Read other blogs in this series RINatomy:…
Read MoreRINatomy Part 1 – The RIN As A Subsidy
A Renewable Identification Number (RIN) is a part of the price control system that manipulates the prices of fuel components to force otherwise non-economical biofuels into the US fuel supply. Anatomy noun, anat·o·my ə-ˈna-tə-mē a study of the structure or inner workings of something Read other posts in this series RINatomy – In this control…
Read MoreRINs And Stock Prices – Are They Connected?
The current renewable diesel boom was triggered by $billions of investment whose financial success relies on government mandates, credits, and subsidies, primarily the Renewable Fuels Standard and its Renewable Identification Number (RIN) credit system. Hoekstra Trading has studied relationships between RINs and stock prices since 2020 and reported on them in our annual Research Reports.…
Read MoreRenewable Diesel In The News – Part 4, Critique Of The C-Suites
This is Part 4 of a four-part series reviewing my notes from a December 15, 2023 presentation made by Scott Irwin, Professor of Economics at The University of Illinois, titled “The RFS, Renewable Diesel, SAF & the Future of Biofuels”. Read more blogs from this series Renewable Diesel in the News – Part 1 provides…
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