Biofuel stocks drop amid uncertainty over Trump refinery policy

[Archer Daniels Midland Company]
wellesenterprises/iStock Editorial via Getty Images

Shares of U.S. biofuel producers fell sharply as investors grew concerned that new policy moves by the Trump administration may dilute the impact of renewable fuel mandates.

According to sources cited by Reuters, officials are weighing a plan [https://seekingalpha.com/news/4493782-white-house-is-said-to-weigh-partial-biofuel-reallocation-plan] that would require major refiners to absorb only a portion, potentially half or less, of the blending obligations initially waived for small refineries. These waivers allow certain refineries to bypass requirements to mix biofuels like ethanol into gasoline and diesel.

The market reacted negatively, with major players such as Bunge Global (NYSE:BG [https://seekingalpha.com/symbol/BG]) and Archer-Daniels-Midland (NYSE:ADM [https://seekingalpha.com/symbol/ADM]) experiencing their steepest stock declines since April. Ethanol producers Valero Energy (NYSE:VLO [https://seekingalpha.com/symbol/VLO]) and Green Plains (NASDAQ:GPRE [https://seekingalpha.com/symbol/GPRE]) also fell by as much as 5%.

Further fueling concerns, Republican Senator Mike Lee introduced a bill Tuesday that would block the Environmental Protection Agency (EPA) from shifting these obligations to larger refiners, a move that could suppress short-term demand for bio-based fuels.

The developments come just weeks after the EPA proposed significantly higher biofuel quotas for 2026 and 2027, sparking fresh friction between agricultural and oil industry groups. Meanwhile, Renewable Identification Numbers (RINs), credits used to track compliance with blending rules, dropped to their lowest price since June.

MORE ON ARCHER-DANIELS-MIDLAND, BUNGE, ETC.

* The Case For A Recovery In Bunge's Stock [https://seekingalpha.com/article/4820502-case-for-recovery-in-bunge-stock]
* Archer-Daniels-Midland Company (ADM) Presents At Barclays 18th Annual Global Consumer Staples Conference 2025 (Transcript) [https://seekingalpha.com/article/4819131-archer-daniels-midland-company-adm-presents-at-barclays-18th-annual-global-consumer-staples]
* Green Plains: Transforming Ethanol Production From Zero To Hero [https://seekingalpha.com/article/4818026-green-plains-transforming-ethanol-production-from-zero-to-hero]
* White House is said to weigh partial biofuel reallocation plan [https://seekingalpha.com/news/4493782-white-house-is-said-to-weigh-partial-biofuel-reallocation-plan]
* California in talks to pay millions to Valero to avoid refinery shutdown - Bloomberg [https://seekingalpha.com/news/4493446-california-in-talks-to-pay-millions-to-valero-to-avoid-refinery-shutdown-bloomberg]