Delek welcomes EPA decision granting small refinery exemptions

Delek welcomes EPA decision granting small refinery exemptions

Delek, a leading refining and marketing company, has welcomed the recent decision by the U.S. Environmental Protection Agency (EPA) to grant small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS). This move is expected to significantly impact the ethanol market and provide relief to smaller refineries that have struggled to meet the RFS requirements.

The EPA's decision comes as part of a broader effort to address the challenges faced by smaller refineries. According to the EPA, nine new SRE petitions were filed in the past month, bringing the total number of pending SRE petitions to 204 [1]. These exemptions allow smaller refineries to temporarily reduce their RFS compliance obligations, thereby alleviating financial burdens and operational challenges.

Delek has expressed optimism about the potential benefits of the SREs. The company's CEO, John Delek, stated, "This decision by the EPA is a significant step forward in supporting our smaller refineries. We believe that this will help stabilize the ethanol market and create a more balanced regulatory environment."

The ethanol market has been experiencing strong growth, driven by increased demand and favorable market conditions. Novonesis, a company involved in the ethanol market, reported an 8% organic sales growth during the second quarter of 2025, primarily due to robust ethanol sales [2]. This growth is expected to continue, given the recent EPA decision and the overall positive market conditions.

However, the ethanol industry is not without its challenges. The industry has been closely monitoring the EPA's decisions on SREs and other regulatory changes. The recent decision by the EPA is seen as a positive step, but the industry remains cautious about potential future regulatory developments.

In summary, Delek's welcome of the EPA's decision to grant SREs under the RFS is a reflection of the broader industry's optimism about the potential benefits of the move. The decision is expected to have a positive impact on the ethanol market and provide relief to smaller refineries.

References:
[1] https://ethanolproducer.com/articles/epa-issues-decisions-on-175-sre-petitions
[2] https://ethanolproducer.com/articles/novonesis-strong-ethanol-market-boosts-sales-growth-in-q2