When energy companies mix ethanol into gas, or import fuel blended with ethanol, they get a credit from the government. That credit can be sold to other companies that don’t blend ethanol to help them meet federal requirements, creating a marketplace.

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Refiners are required by law to use 13.8 billion gallons of ethanol in 2013. Renewable Identification Numbers are attached to each gallon of ethanol to track compliance. Once the additive is blended into gasoline, refiners can retain the certificate to show compliance or trade it to another party.

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Refiners are hesitant to blend more than 10 percent ethanol into the fuel supply over safety concerns. Skyrocketing renewable fuel credit prices indicate that the industry is nearing the limits of what it can blend, or the “blend wall.”

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