Biofuel policy challenge rejected

A challenge raised by the US oil industry over policies relating to increased levels of biofuel in gasoline and diesel have been rejected by the federal appeals court.

The National Petrochemical & Refiners Association (NPRA) and the American Petroleum Institute claimed the Environmental Protection Agency's rule was retroactive.

Gary Haer, vice president of sales and marketing at the Renewable Energy Group, commented that the decision by the US Court of Appeals in Washington means demand for biodiesel will increase from next year.

He said: "This lawsuit was the final piece of uncertainty creating market disruption for the biodiesel industry."

However, Patrick Kelly, a senior policy adviser at the American Petroleum Institute, said in a statement that the ruling may set a "dangerous precedent" and "significantly complicates compliance".

The NPRA is a trade association that represents 450 members, such as US refiners and petrochemical manufacturers that provide consumers with products including gasoline, diesel fuel and home heating oil.