Managing the Conundrum of the Cellulosic Biofuel RVO

By Brian Foody, Biofuels Digest. 

After a long period of limited production, cellulosic biofuels are finally starting to flow into the market. Renewable natural gas and cellulosic ethanol production facilities are operating and some are approaching commercial production volumes.   These fuels generate D3 (cellulosic) RINs (Renewable Identification Numbers), which are used by obligated parties for managing their compliance under the Renewable Fuel Standard (RFS). The emergence of commercial cellulosic biofuel production is a signal of the success of the RFS.

However, the outlook for cellulosic biofuels investment is clouded by uncertainty about the low value of D3 RINs.