...as of last night.
Not good. I'm all for cheap gas, but according to my calculations, E85 should be maybe $2 a gallon.
Somebody is losing money on this. I'm guessing that there is excess inventory (of gasoline too). Probably the ethanol producers are taking it in the shorts. Verasun is in barkruptcy, I believe.
I might top off with E85 tonight. Stop the experiment with 87 octane gas (LTFT and mpg are more or less know at this point!). Get back on the wagon.
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http://www.bloomberg.com/apps/news?pid=20601087&sid=aSiD2NN4Vz7s&refer=home
"VeraSun said its downfall was the result of derivative contracts entered into earlier this year that left the company on the hook for high-cost corn just as the grain market was poised to crash. As the threat of crop damage from Midwest flooding receded, corn tumbled 48 percent to close at $4.01 a bushel on Oct. 31."
I'm not sure that this is the best news for the ethanol industry. However, it desn't sound all that dire; VeraSun made a bad business decision and it doesn't seem to indicate that the overall economics of the industry are unsound.
I just hope that the VeraSun folks dont wake up with "The new boss" being a foreign investor or an oil company. I would like to see American ethanol product remain truly American. In fact VeraSun was too big for my tastes anyway. I would like to see smaller firms each going after the consumer market direct via E85 bypassing the middlemen to bring the best value to the consumer and bring true American competition to Americans. Perhaps this is too idealistic but I can hope for it anyway????
Alcohol
They're going to continue operations as usual while the bankruptcy gets them out from under the contracts. "The new boss" is the same as the old boss. No word on the length of the beards.
VeraSun is still very much in business. The people left holding the bag are their creditors and suppliers.
This:
http://domesticfuel.com/2008/11/05/underwriters-laboratory-to-approve-e85-dispensing-equipment-in-2009/
...is fantastic news. Certification is the only thing keeping e85 out of the service areas on the NYS Thruway. It will open more and more e85 stations outside of the corn belt.
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