Poet LLC and Marquis Energy are reducing ethanol production at certain plants in the US in response to the Trump administration’s decision to exempt 31 small refineries from meeting obligations under the Renewable Fuel Standard (RFS).

On Wednesday Reuters reported, citing the firm’s CEO, that Marquis will be producing less ethanol at its plant in Necedah, Wisconsin, which has an annual capacity of 100 million gallons. A day earlier, Poet announced that it will idle production at its 92-million-gallon-a-year ethanol facility in Cloverdale, Indiana.

On August 9, the US Environmental Protection Agency (EPA) granted 31 small refinery exemptions (SREs) for 2018. Poet accused the agency of handing out hardship waivers to some of the wealthiest companies in the world, as some of these small refineries are owned by oil giants like ExxonMobil and Chevron.

“EPA’s mismanagement of SREs has created an artificial cap on domestic demand for ethanol,” Poet added. The EPA, meanwhile, has said there was “zero evidence” that the SRE programme was hurting demand for US-made ethanol.

Provided by Renewables Now exclusively for Essentica.