The US Supreme Court has overruled an appeal from various trade groups to not consider increasing ethanol use in the country which was suggested by Environmental Protection Agency (EPA).
Trade groups for food manufacturers, the oil and gas sector and the auto industry have challenged EPA’s decisions to sell gasoline blended with 15% ethanol, increased from initial 10%.
Agency has allowed the use of 15% blended fuel (E15) for 2001 model vehicles and reserved the rules for older cars and trucks, reported Dow Jones Business News.
Food producers claimed that the introduction of E15 will increase the corn prices substantially with increased ethanol production, while auto industry groups cited the vehicle engine damages due to higher ethanol content.
Ethanol producers, however, have welcomed the ruling from the government.
Responding to the court’s decision, Poet CEO Jeff Lautt stated that the Supreme Court’s ruling would provide US drivers with increased fuel options.
"By denying the challenge from renewable fuel opponents to limit growth of clean, American-made fuel, those choices will be available to even more consumers," added Lautt.
Poet, meanwhile, is developing a commercial-scale cellulosic bio-fuel plant in Iowa, US, in collaboration with DSM. The facility will use corn cobs, leaves and other crop residue to make renewable fuel.
"As the biofuels market is allowed to grow, this technology will spread even more quickly across the country. Today’s decision allows that growth to occur," concluded Lautt.