| LOS ANGELES, July 30
LOS ANGELES, July 30 Biodiesel maker Renewable
Energy Group Inc on Tuesday reported a 60 percent rise
in quarterly profit due in part to sharply higher prices on U.S.
renewable fuel credits.
Renewable fuel credits are used by refiners to prove they
have blended their share of renewable fuel - mainly ethanol -
under the Renewable Fuels Standard (RFS), a program meant to
reduce U.S. dependence on foreign oil and cut greenhouse gas
Renewable Identification Numbers, or RINs, for the
biomass-based diesel made by REG rose to $1.07 at the end of the
second quarter from 77 cents at the beginning of the quarter,
the company said in a statement.
"RIN prices are a refelection of higher demand, and higher
demand is helping our business," REG Chief Executive Daniel Oh
said in an interview.
Prices have soared as refiners fear the Environmental
Protection Agency will keep unchanged a 16.55 billion gallon
blending target for 2013 -- a level refiners say is a burden.
Oh said he expects volumes in the biomass-based diesel
component of RFS 2 to increase next year. That component is part
of an advanced biofuels mandate included under the RFS and is
seprate from the ethanol mandate.
Renewable Energy Group's net income for the quarter ended
June 30 was $19.6 million, or 62 cents per share, compared with
$11.3 million, or 39 cents per share, a year ago.
Revenue rose 42 percent to $387.1 million.
The Ames, Iowa company uses animal fats, used cooking oil
and soybean oil to produce a product that can be blended with
diesel fuel. The company controlled about 17 percent of the U.S.
biodiesel market last year and plans to expand production
capacity by acquiring plants, upgrading existing facilities or
building new ones.
REG's shares have soared over 130 percent this year.