U.S. refiners collect up to $1.6B shortfall in biofuel credits

In New York, Reuters reports that U.S. merchant refiners have amassed up to a $1.6 billion shortfall in credits they need to comply with U.S. biofuel laws, according to a Reuters review of corporate disclosures, an apparent bet that the Biden administration could let them off the hook or that credit prices will fall.

Some of the companies with big liabilities are PBF Energy (outstanding biofuel and emissions credit obligations of $848.3 million for first quarter 2021, up from $118.4 million for the same quarter a year ago), CVR Energy (posted a biofuel credit liability of $342 million, up from $6 million last year), Par Pacific Holdings (biofuel credit liability of $126 million as of March), and Delta Airlines ($346 million, up from $33 million at the end of March last year).

“There is a sense among refiners that they have to do something right now,” said Robert Campbell, head of oil products research at Energy Aspects, referring to the decision among some companies to carry a shortfall in the biofuel credits. “They feel that the point of obligation is extremely challenging for them.”