Reduced ethanol production met with first ever RIN drawdownA shortfall in ethanol production has led to a drawdown in Renewable Identification Numbers for the first time.
A shortfall in ethanol production has led to a drawdown in Renewable Identification Numbers for the first time.
U.S. ethanol production in the first half of 2012 averaged about 900,000 barrels per day, or an annualized total of 13.8 billion gallons. Widespread drought across corn-producing regions in the Midwest reduced corn harvests, and as a result ethanol production rates began to decrease.
Ethanol production in the second half of 2012 fell to an average of 830,000 barrels per day, or an annualized total of about 12.7 billion gallons. After accounting for ethanol exports, which do not provide RINs for Renewable Fuel Standard compliance, this lower ethanol output in the second half of 2012 led to corn ethanol consumption falling an estimated 600 million gallons short of the 13.2 billion gallons expected for the 2012 RFS target.
The available bank of corn ethanol RINs was estimated at 2.1 billion gallons after the drawdown for 2012 RFS compliance purposes, while the total supply of all banked RIN classifications (including biomass-based diesel and advanced biofuels) was estimated at 2.7 billion gallons.