US ethanol credit prices slump after EPA delays biofuel compliance deadline

U.S. ethanol blending credit prices have dropped to their lowest levels in over four months after the Environmental Protection Agency (EPA) announced it would extend the September 1 compliance deadline for refiners. The Renewable Identification Numbers (D6 RINs) traded at $1.75 each, down 34 cents from Friday and their lowest level since April 15.

This comes as refiners are required to meet their 2025 biofuel blending mandates by September 1, either by generating Renewable Identification Numbers (RINs) or purchasing credits from other market participants. The EPA's decision to review 34 exemption petitions, some dating back to July 2024, has added uncertainty to the market, with the outcome seen as potential "RIN relief" for refiners' 2026 and 2027 obligations.

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