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Al-Corn CEO says RIN cap would destroy ethanol market

The CEO of an ethanol plant in southeast Minnesota says the proposal to cap RIN prices aims to destroy the market for renewable fuels.

Randy Doyal of Al-Corn Clean Fuel in Claremont tells Brownfield Big Oil wants to eliminate the competition.

“We have folks that want to keep our product out of the market.  They don’t want that competition and they’re willing to do almost anything to prevent it.”

He says a 10-cent cap on RINs, which has been proposed by Texas Senator Ted Cruz, would be devastating.

“It’s not about capping the price, it’s about setting the price for those refiners, those obligated parties, who’ve chosen not to meet their obligation have a way to buy out of it.  And that would reduce the market for ethanol (and) definitely reduce the grind of corn for ethanol.”

Doyal is among many ethanol supporters who say the best way to lower RIN prices is by allowing higher blends of ethanol into the marketplace.

A meeting at the White House to discuss possible changes to the Renewable Fuel Standard was canceled over the weekend, with no word on a future date.