Genscape announces first verified D6 ethanol Q-RINs

By Genscape | June 03, 2015

The final week of April 2015 marked the first time Genscape D6 ethanol Q-renewable identification numbers (Q-RINs) were generated within the U.S. EPA Moderated Transaction System. Four ethanol facilities are now generating Q-RINs, with more expected to come online in the coming months. Genscape is the EPA approved QAP provider for all four of these facilities, including three Poet facilities. Poet is one of the largest ethanol producers and marketers in North America.

“Poet understood early on that a number of its customers would recognize the premium associated with the Q-RINs was small when compared to the value brought by the availability of having an affirmative defense in most instances of fraudulent RINS in the marketplace,” said Bob Whiteman, CFO of Poet Ethanol Products. “We are increasingly seeing our larger counterparties turn to Q-RINS as a cost-effective way of insuring the quality of their RIN pool, and Poet is proud to be able to offer Q-RINs on all gallons produced by us and our partner plants.”

The introduction of D6 Q-RINs indicates that ethanol facilities see value in QAP services. Obligated parties are showing an interest in D6 Q-RINs as a means to reduce the burden of internal compliance teams, according to market sources close to Genscape. “By the end of 2015, our analysts expect Q-RINs to represent 5 to 10 percent of total monthly D6 RIN generation. In the long-term, D6 Q-RINs have the potential to become an industry standard,” said Susan Olson, vice president of biofuels at Genscape.

Although not all facilities are currently generating Q-RINs, Genscape’s existing client base represents 17 percent of the D6 renewable fuels market.

D4 Q-RINS also have a proven track record of fetching a higher value than their unverified counterparts. “We regularly transact biodiesel Q-RINs for two cents over ‘second tier,’ non-QAP RINs,” notes RINs broker Andrew Emerson of Progressive Fuels Ltd. “If a biodiesel producer is struggling to sell their RINs for top tier pricing, we often recommend that they have their facility QAP’d.”

The Genscape QAP is designed to take on the compliance burden by using patented technology to support audit requirements. While most QAP providers require two site visits per year, Genscape’s monitoring technology enables the company to consolidate multiple audits into a single site visit. Additionally, with a searchable database of real-time, comprehensive facility information, Genscape’s Biofuels Directory is quickly becoming the Q-RIN market’s hub for connecting producers and obligated parties. To learn more about Genscape’s QAP solutions visit the company’s website. To create a free account to explore the Biofuels Directory visit the Genscape directory