VeraSun Energy Works to Lower E-85 Fuel Cost - 8/9/06

A Keloland company called VeraSun went public in June of 2006 and is reporting healthy second quarter profits.  Because demand for E-85 ethanol fuel exceeded supply the summer of 2006 the cost of E-85 fuel cost more than gasoline.  VeraSun is working to produce more E-85 fuel to prevent this in the future. 

VeraSun business is converting corn into ethanol which is mixed with 15% gasoline making E-85 green friendly fuel.  During their second quarter they have generated $153 million in revenue and $19 million in income.  Their CEO and Chairman Donald Endres states their companies success is the result of drivers realizing the need to reduce the dependence on foreign oil.  Ethanol with mixed with 15% gasoline is a clean high octane solution.

For every gallon of E-85 fuel burned in the farming and transportation of corn to the ethanol plant you get eight gallons of fuel back.

Demand has prompted VeraSun to add three additional plants to their existing two plants currently producing up to 230 million gallons.  Endres states producing more ethanol should lower the price of E-85 at the pump.

VeraSun is working with car manufactures to promote E-85 fuel.  Endres states he believes South Dakota corn farmers will be able to expand their yields to meet the demand for E-85 fuel.    

Source: Matt Belanger, Keloland TV
http://www.keloland.com/News/NewsDetail5440.cfm?Id=0,50084

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