The investment is planned to facilitate 400 million RINs that the company is falling short of to abide by the US laws of using 10% ethanol blended gasoline. Most of the companies use RIN as a way out rather than blending ethanol.
The investment of ethanol RINs increased to more than a dollar in March 2013, compared to 5 cents in October 2012, in the wake of rising prices, reported Reuters.
Commenting on its plans, PBF Energy chairman Tom O’Malley noted that the company had to shell out $10m more than its previous budget of $15m to purchase ethanol credits amidst surge in the price of the renewable fuel credits.
Also, O’Malley said that the use of biofuel credits is a hidden tax on the public with companies having to pass the rising prices of RINs on to customers.
However, PBF is planning to blend 75% of its gasoline output with ethanol from the latter half of 2013, against the current 50%.
The company would also increase its refining fuel output export to reduce its RIN exposure, O’Malley added.
PBF has begun to export about 20,000 barrels-per-day of middle distillates, although it will not export finished gasoline.
