D3 - cellulosic biofuel

Over the past 18 months, D3 RIN prices have remained relatively high, consistently above USD 3.00 per RIN. This category includes cellulosic biofuels, which have stringent production requirements and a higher greenhouse gas reduction threshold, leading to limited supply. In 2023, prices fluctuated around USD 3.40 per RIN due to low production volumes (compared with other RINs categories) and high demand driven by RFS mandates. Factors contributing to high prices include the difficulty in scaling cellulosic biofuel production and the limited availability of cellulosic waiver credits, which have traditionally provided a safety net for compliance.