Latest news with #RINs
Reuters
29-05-2025
- Business
- Reuters
Exclusive: White House considers plan to clear record backlog of small refinery biofuel waivers
WASHINGTON, May 29 (Reuters) - The White House is weighing a plan to clear a record backlog of requests from small refineries for exemptions from U.S. biofuel laws, which could include approving many current applications and requesting industry input to deal with older ones, according to three sources familiar with the plans. The U.S. Renewable Fuel Standard requires refiners to blend biofuels like corn-based ethanol into the nation's fuel supply or buy renewable fuel credits, known as RINs, from those who do. Small refiners can petition the Environmental Protection Agency to receive an exemption if they can show financial hardship. There are more than 160 outstanding requests for exemptions that represent potentially billions of dollars worth of tradeable credits. A decision from U.S. President Donald Trump's administration to clear the backlog would have consequences for the oil and agricultural industries, and impact the price of commodities from gasoline and renewable diesel to soybeans and corn, along with the companies that produce them. In the past, widespread exemptions have sent credit prices lower, along with prices for soybeans and ethanol. The White House is considering granting many of the 19 requests for exemptions from 2024, and issuing a rule seeking input on how to deal with the others, some of which date back to 2016, the sources said. The Trump administration sees approving some requests and delaying others as less of a shock to the multi-billion-dollar credit market than deciding on all of them at once, the sources said. The White House would also likely force larger refiners TO make up for the exempted gallons in a process known as reallocation, but the details are still being worked out, the sources said. No final decision on a path forward has been made, the sources said, and details could change as industries step up engagement with the administration. The White House declined to comment. Molly Vaseliou, an EPA spokesperson, said there have been multiple reports about how the administration plans to tackle the exemptions, with different conclusions. She said news reports were "rumors" from people trying to influence the biofuel credit market. She did not confirm or deny the details reported by Reuters. Decisions on small refinery exemptions are made in a collaborative effort by the U.S. Department of Energy and the EPA, but the White House's Energy Dominance Council - along with White House aide Stephen Miller - has taken a lead role this time around, underscoring its importance, the sources told Reuters. During the first Trump administration, the EPA significantly increased the number of exemptions approved, driving down the price of the renewable fuel credits and angering the Farm Belt, which said the exemptions hurt a program that drove investment in the Midwest. The administration of former President Joe Biden was critical of the exemptions and let the applications linger without any decisions, resulting in the buildup. The RFS gives refiners who need to buy credits to comply with the program roughly two years to submit them to the EPA, complicating the administration's efforts to resolve outstanding credits from 2016 until 2022 that are effectively worthless.
Yahoo
13-05-2025
- Business
- Yahoo
Calumet Renewables Expansion Is Unlocking Value: Analyst
BofA Securities analyst Conor Fitzpatrick initiated coverage on Calumet, Inc (NASDAQ:CLMT) with a Buy rating and a price forecast of $15. The analyst noted that Calumet's Montana Renewables unit is advancing its MaxSAF project to boost sustainable aviation fuel output from ~40 million to over 250 million gallons annually, aiming to tap into stronger pricing and subsidy benefits over renewable diesel and petroleum. According to Fitzpatrick, the expansion is expected to nearly double EBITDA from 2025 to 2027 and is supported by interest-free DOE loans, reducing execution plans to monetize the asset to cut debt, which could bring parent leverage below 2.5x through deconsolidation and repayment. The analyst pointed out that Calumet underperformed during the ramp-up of its biofuels unit, Montana Renewables, due to margin pressure, but recent developments may shift momentum. Reports suggest that the Environmental Protection Agency is preparing to increase demand for Renewable Identification Numbers, or RINs, beginning in 2026, following lobbying from oil and agricultural interests. Meanwhile, California is in the process of re-approving measures to boost demand for Low Carbon Fuel Standard, or LCFS credits. Prices for RINs have approximately doubled since December 2024, and the analyst expects them to remain within a favorable range, with some upside potential as regulatory developments advance. A recovery in demand for LCFS credits is also anticipated, which would support higher margins. For the investment thesis to materialize, the analyst notes that the company must demonstrate margin recovery in financial performance, achieve meaningful volume growth at MRL, and make tangible progress toward monetizing MRL and reducing overall leverage. Price Action: CLMT shares are trading higher by 5.84% to $13.89 at the last check on Tuesday. Image by Phongphan via Shutterstock Date Firm Action From To Feb 2022 HC Wainwright & Co. Maintains Buy Nov 2021 Wolfe Research Upgrades Peer Perform Outperform Nov 2021 Cowen & Co. Upgrades Market Perform Outperform View More Analyst Ratings for CLMT View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? CALUMET (CLMT): Free Stock Analysis Report This article Calumet Renewables Expansion Is Unlocking Value: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
