D5 - advanced biofuels

D5 Renewable Identification Numbers (RINs) prices have collapsed significantly since their peak in 2022. From an average of USD 1.86, the average price for April 2024 has dropped to around USD 0.52, representing a 72% decline. This collapse is largely driven by the oversupply of D4 RINs, which can fulfill multiple categories of renewable fuel obligations due to the Renewable Fuel Standard (RFS) nesting structure. As a result, the excess supply of D4 RINs has decreased D5 RIN prices because D4 RINs effectively cap the prices of D5 RINs. D5 RINs represent advanced biofuels, which include biofuels derived from non-corn feedstocks that achieve at least a 50% reduction in greenhouse gas emissions.