October 31, 2022
Today, CARB posted the second quarter 2022 data for the LCFS program. In today’s flash report, we offer a quick look at the second quarter data. Our comprehensive analysis will be published in Stillwater’s Quarterly LCFS Newsletter which will be available to subscribers on Thursday, November 10th.
The second quarter data show a net credit of 1,348,475 metric tons (MT), building on the first quarter net credit of 691,270 which was adjusted downward from 892,431 MT by negative Administratively Adjusted Credits in this quarter’s LRT data. With the 2Q2022 net credit, the credit bank now stands at a record 11.33 million MT.
The table below summarizes the quarter and compares it to the prior quarter and same quarter last year.
A quick look at this data shows a few trends of interest. The major factors contributed to the sizeable net credit in the second quarter compared to the first quarter was: increases in credits for Renewable Natural Gas, RD, on-road electricity, and the large administrative deficit that was added to the first quarter. These credits were offset by increases in deficits for CARBOB and ULSD. Compared to the first quarter of 2022, the second quarter 2022 showed a 34.3% increase in RNG credits on a 4.3% volume increase, and an 8.3% increase in RD credits on a 9.0% volume increase, and a 14.8% increase in On-road Electricity credits on a 13.7% volume increase. Deficits for CARBOB and ULSD increased by 4.89% on a similar change in volume. The three low CI fuels and two high CI fuels also drove the 1.2 million credit increase from the year earlier quarter.
We will provide an in-depth analysis of this data in our upcoming quarterly newsletter, to be published on November 10, 2022. Access to Stillwater’s LCFS Newsletter is only available to subscribers. For more detailed information on LCFS data trends and analysis, be sure to subscribe! Your first two weeks are free, so subscribe today to receive our Quarterly Analysis in your trial period.