Renewable fuel equities rose 2% last week, outpacing the S&P 500's 0.1% gain as 2025 Small Refinery Exemption developments improved market indicators, TPH Energy Research said in a Tuesday note.
The Environmental Protection Agency will return the full volume of Renewable Identification Numbers, or RINs, waived for 2025 to future renewable volume obligations in 2026 and 2027, TPH said.
The change lifted D4 RINs by 27 cents per gallon and soybean oil by 3 cents per pound last week, pushing several renewable diesel indicators to stronger 5-year highs.
The improved RIN environment also strengthened renewable natural gas and US soy crush margins, while ethanol margins fell 7 cents/gal as inventories remained elevated.
The renewable diesel tallow margin increased $2.06/gal to $2.75/gal, while the used cooking oil margin gained 81 cents/gal to $3.00/gal, according to the note.
The dairy renewable natural gas margin rose $1 per million British thermal units to $37/MMBtu, while the landfill margin gained $1/MMBtu to $22/MMBtu; the US soy crush margin increased $2 per ton to $98/ton, TPH said.