KUALA LUMPUR: Palm oil biofuel has failed to meet greenhouse gas saving standards to qualify for the US renewable fuels programme, the US Environmental Protection Agency (EPA) said, dealing another blow for southeast Asian producers in search of new markets.
The EPA said in a regulatory filing that palm oil converted into biofuels in Indonesia and Malaysia cut up to 17 per cent of climate warming emissions, falling short of a 20 per cent requirement to enter the world's largest energy market.
For 2012, the EPA raised annual renewable fuel mandates by 9.4 per cent to 15.2 billion gallons.
If the EPA findings are finalised later this year, palm oil producers would now miss out on supplying biomass-based diesel to US oil refiners and importers who currently use canola and soyoil fuels. The agency set a deadline of February 27 for public comment on its findings. --Reuters