Biofuels defenders blast EPA plan to cut ethanol mandate

|By:, SA News Editor

Ethanol producers vow to fight back against the EPA's proposal to lower the annual requirement for the biofuel used in gasoline.

Archer Daniels Midland (ADM) complained it had invested in renewable fuel projects "on the basis of firm legislative commitments" and across two presidential administrations.

Green Plains (GPRE) CEO Todd Becker calls the prospect of the U.S. turning away from a cheap and domestically produced fuel source "disgraceful."

Although "disappointed," Renewable Energy (REGI) CEO Daniel Oh says the company's scale would "allow us to continue to succeed."

"While we still think a large U.S. corn crop in 2013 will benefit other ADM businesses, we see the renewable fuel proposal as adding risk to the shares," says S&P Capital IQ's Tom Graves, who downgraded ADM shares to Sell from Hold after the announcement.

Also: PEIX, GEVO, BIOF, SZYM, SYNM, AMRS, KIOR.

ETF: CORN.