The biodiesel markets continues to grow year over year with over 1.7 billion gallons produced in 2015 alone. The EPA announced an increase in final volumes for this fuel for 2016-17 which means we can expect the market to further evolve both domestically and internationally. With producers in the United States already producing record amounts of fuel and the international community producing fuel to be imported into the US, market participants will have to work to stay ahead of the curve in both producing and transporting the fuel to the end users. Our biodiesel expertise can help you on both your short and long term goals regardless of whether you are upstream or downstream.
In 2013, California launched its cap-and-trade programs, which uses a market-based mechanism to lower greenhouse gas emissions. The ultimate goal is to reduce greenhouse gas emissions from regulated entities by more than 16 percent between 2013-2020. The cap-and-trade program sets a clear limit on greenhouse emissions and minimized the total cost to emitters while achieving the target. This limit is translated into tradable emission allowances which are auctioned or allocated to regulated emitters on a regular basis. These CCA’s are traded both on the regulated exchanges and the OTC market.
Production of ethanol within the U.S. set new records in 2015 with more than 14.8 billion gallons produced. In addition, over 13.5 billion of those gallons were blended into conventional gasoline. The industry still has the ability to produce even more gallons on a year over year basis. Industry leaders anticipate a continued increase in production and consumption volumes over the next few years thus increasing its liquidity and creating more trading opportunities within the market. BCG can assist in increasing/decreasing your physical position at any time while also offering hedging strategies. With our logistical skills, we can streamline product transfers from any of the following modes: In-tank transfers, truck, rail, barge or vessel deliveries.
While Low Carbon Fuel Standard is a relatively young market, your BCG professionals are seasoned veterans while being key catalysts in helping create the market to what it is today. Being a proponent since the inception of the market and educating new participants over the years, you can count on your BCG professional to help make the tough market decisions easy.
BCG is an expert in the North American railcar purchasing and leasing market. Our team of experienced professionals are committed to understanding your industry, individual business, and short/long term logistics goals. Regardless of your current fleet size or whether your currently active or not, we will provide you unparalleled value about the present and future market conditions.
The RIN market holds a very dominant role in the biofuel world today. These credits are critical to the Renewable Fuel Standard (RFS) that was implemented by the EPA in 2005 under the Energy Policy Act. The employees at BCG have been instrumental in the brokering of these credits since 2008. With our ability to move both small and large positions of RINs on any given day, we will provide the insight to maximize your position value when called upon.