Market

Penetration of renewable (i.e. paraffinic) diesel into the U.S. diesel pool has grown substantially in recent years. Unlike the case of biodiesel, reliance on imported product (sourced almost exclusively from Neste Oil’s Singapore plant) is substantial. There is also a growing volume of domestically-sourced product coming on stream, however. This trend is evident from RIN generation data published by the Environmental Protection Agency (EPA), and depicted the chart below. The Singapore imports are accounted for in the RINs aggregates below as “foreign generation” RINs.

Much of the impetus for renewable diesel use has come from California’s Low Carbon Fuel Standard (LC