Biofuel Shares Hit as Policy Speculation Stokes Demand Fears
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Shares of U.S. biofuel companies slumped on fears that Trump administration policies may fall short of fully offsetting exemptions from mandates requiring refineries to blend renewable fuels into gasoline and diesel.
The administration is considering a plan that would require large refiners to take on “half or less” of the blending obligations originally assigned to small refineries that received waivers, Reuters reported, citing people familiar with the matter.
On Sept. 9, Sen. Mike Lee (R-Utah) introduced legislation that would block the Environmental Protection Agency from forcing large refineries to pick up the slack.
Such a move would reduce near-term demand for crop- and waste-based fuels, tempering investor enthusiasm for biofuel producers following the EPA’s June proposal to significantly raise production quotas for 2026 and 2027. The issue has emerged as a key point of contention between farm and oil lobbies as they respond to Trump’s proposed biofuel policy.
Shares of crop processors Bunge Global and Archer-Daniels-Midland Co. slumped the most since April on Sept. 10. Ethanol suppliers Valero Energy Corp. and Green Plains plunged as much as about 5%. A key price indicator for biofuels — the so-called RINs — traded at the lowest levels since June.
ADM ranks No. 80 on the Transport Topics Top 100 list of the largest private carriers in North America.
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