California LCFS credits plunge on strong biofuels output

摘要

Washington-The California Low Carbon Fuel Standard market has plunged in recent days, with credits going from an average of almost $111/mt last week to trading at $80/mt on Wednesday, according to market sources. The price drop could be due to a number of factors, including surging RINs prices, record biodiesel production, and imports of Brazilian sugar cane ethanol, which generates more LCFS credits than conventional corn ethanol.