Biofuel credit surplus could blunt RIN price impact from Trump moves: sources

NEW YORK (Reuters) – A big surplus of U.S. biofuel blending credits would likely blunt potential price increases in the market if the Trump administration follows through on its proposal to boost blending volumes mandates, four industry sources said. Prices for the credits known as Renewable Identification Numbers, or RINs, tanked this month after the Environmental Protection Agency decided to grant 31 biofuel waivers to oil refiners, exempting them from their obligation to blend ethanol into their gasoline. The administration has since sought to quell anger over the waivers in the agricultural industry and is considering boosting next year’s blending volumes mandates to compensate for the impact of the waivers, Reuters reported last week here. While that move could help bolster demand for corn-based ethanol, its impact – especially on the RIN market – could be muted by a buildup in the so-called “RIN bank” over the past few years: There were 2.19 billion carryover RINS from 2018 for use for compliance in 2019, according to EPA estimates, compared to 2.59 billion for 2018, 2.22 billion for 2017 and 1.54 billion for 2016. “Even if the EPA (Environmental Protection Agency) moves forward with some of the ideas being talked about,… continue reading

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