Oliver Nääs, a sworn attorney representing Olerex, said in a press release that the court agreed with the fuel company that the violation was not intentional, which was the basis for reducing the fine.

"The violation did not harm the environment and a significant amount of biofuel was ultimately released for consumption — enough that, without the existing limitations, would have fulfilled the biofuel obligation. Since the company did not gain financially from the situation, the court found that the violation was not intentional but rather a mistake," Nääs stated.

In 2023, Olerex used biofuel produced from used cooking oil (UCO) to meet its biofuel obligation, but in quantities exceeding the legal limit. UCO-based biofuel may not be used in material terms above 1.7 percent and not more than 3.4 percent in calculated terms, since used cooking oil counts with a double weighting factor.

To fulfill the obligation, Olerex had considered purchasing either UCO-based biofuel or POME-based biofuel, the latter derived from a by-product of palm oil production. According to the company, POME would have fulfilled the requirement and even been more cost-effective, but the restriction on UCO was overlooked and the UCO transaction was carried out.

Olerex said the court ruling also confirmed that the company did not profit financially from the transaction and that the environment was not harmed, as biofuel was still released for consumption.

Nääs added that the company will decide whether to accept the court ruling or appeal it after a more thorough review.

The Environmental Board has fined Olerex on several occasions for violations related to fulfilling the biofuel obligation. In addition, a criminal case is ongoing involving the company and board member Andres Linnas over the submission of false information related to biofuel.

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