US Renewable fuel credits prices plunge as speculation grows that E15 will not happen this year

In New York, US ethanol credit prices plunged on increasing speculation that the US government will not allow an increased E15 ethanol blend this year.

2008 ethanol blending credits, known as Renewable Information Numbers or RINs, which expire in 2010, have dropped to 4 cents, down 47 percent since March 27th on the Rinxchange, while 2009 RINs, which expire in 2011, have dropped 30 percent to 8.5 cents.

RIN prices began to rise in January after increasing ethanol plant shutdowns and production slowdowns caused the spot ethanol price to rise to 40 cents above the price for gasoline and prompted blenders to cash in excess RINs rather than buy and blend ethanol.

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