Velocys gets RINs verified for cellulosic facility in Oklahoma

Renewable Identification Numbers produced at Velocys’ ENVIA Energy plant have been verified by an independent third party auditor.

Auditing company Weaver has delivered the verification under the Quality Assurance Program approved by the US Environmental Protection Agency. Provided the Oklahoma City located ENVIA plant continues operating within the required efficiency range, it is expected to continue producing verified RINS (Q-RINs).

In the US, RINs are serial numbers assigned to a batch of renewable fuel to track its production, use and trading. Under the US Renewable Fuel Standard, fuel refiners are required to either blend biofuels into their product themselves, or purchase RINs generated by renewable fuel producers such as Velocys.

ENVIA Energy has signed a RIN purchase and sale agreement with TransMontaigne Product services, a petroleum fuel distributor and marketer. TransMontaigne will purchase, at a fixed price, all RINs generated at the ENVIA plant over a six-month period starting April 2018.

According to a statement from renewable diesel and jet fuel producer Velocys, “A significant contribution of the revenues of the plant could be derived from the ongoing sale of RINs.”

The statement notes that based on 2017 D7 RIN values, the possible revenue from RINs attributable to ENVIA’s mixed feedstock cellulosic fuel was equivalent to $2.4/gallon or above in 2017.

“This is a significant landmark for ENVIA and represents a further validation step for Velocys’ strategy to build biorefineries that convert woody biomass to renewable fuels. ENVIA demonstrates that we have the capability to produce verified RINs that will enable Velocys to unlock the attractive US renewable fuels market and, in time, grow a material supply position,” Velocys CEO David Pummell in response the RIN verification.

“This milestone is also important to our ongoing Mississippi biorefinery project, being one of the key requirements that will support building a consortium of strategic investment partners into the project.”