Valero, Aemetis may benefit from higher ethanol blending mandates - CS

Aemetis

02/06/2022 15:04

** Reuters reported on Wednesday that the Biden
administration could retroactively raise 2021 ethanol blending
mandates to reflect actual U.S. consumption patterns
 urn:newsml:reuters.com:*:nL1N2XO2JX
    ** Credit Suisse says higher 2021 ethanol mandates would
benefit ethanol producers Green Plains  GPRE.O , Valero Energy
 VLO.N  and Aemetis  AMTX.O 
    ** Says renewable diesel producers VLO, Darling Ingredients
 DAR.N , Renewable Energy Group  REGI.O , Vertex Energy  VTNR.O 
and Calumet Specialty Products  CLMT.O  may also benefit
    ** Brokerage says that by raising the mandates, the U.S.
Environmental Protection Agency (EPA) would be making it very
clear that ethanol is integral to its renewable fuels standard
(RFS) mandate to lower fossil fuel dependence
    ** CS notes that higher mandates would lay to rest concerns
that the Biden administration would materially cut mandates in
election year 2022 to lower renewable fuel credit prices,
thereby reducing gasoline prices
    ** Renewable fuel credit prices had jumped 11% on Wednesday
following the Reuters report  urn:newsml:reuters.com:*:nL1N2XO1CQ
    ** CS says real focus of EPA's next meeting will be 2022
mandates and how it balances between raising RFS and reducing
gasoline prices; forecasts 2022 preliminary EPA mandate at 14.2
bln gallons to 14.5 bln gallons
    ** If EPA issues exemptions for certain oil refiners as it
once used to, CS sees potential gains for Delek US  DK.N , CVR
Energy  CVI.N , Par Pacific  PARR.N  and HF Sinclair  DINO.N 

 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))