The premier single-seat racing class in New Zealand will burn a biofuel during the 2007/2008 season. Officials for the Toyota Racing Series say Shell and Anchor Ethanol Limited are developing the ethanol-blended product. The move follows the lead of other racing series such as the IRL to switch to ethanol. Manufacturers like the fuel as a way to demonstrate green initiatives.

Related:

• New Honda 100 percent ethanol engines ready for IndyCar 2007 season

[Source: Toyota Racing]

Shell president John Hofmeister is touring the country as part of a 50-city dog-and-pony show to explain high gas prices and listen to consumer concerns about the oil industry, the environment and just about anything else on the minds of his customers. It's a bold move, considering the public sentiment toward big oil. But I'm personally aware of Shell's efforts to strike a green chord in the hearts and minds of the public. I get calls or emails from Shell representatives every week, offering to supply information. It is a very efficient operation.

In a recent wide-ranging interview with the San Antonio Express News, Hofmeister offered his companies views on a number of topics, including the infrastructure changes needed to accommodate E85.

"Do customers want E85? We don't know the answer to that yet?" said Hofmeister, noting that consumers see the high cost of E85 and are realizing that the fuel economy is less.

Hofmeister said Shell's position on the source of E85 fuel is clear: the expressed preference is cellulosic ethanol but notes there is no large-scale effort from this segment. Hofmeister says he's concerned about food prices going up if corn is used to produce E85.

On another note, Hofmeister said if subsidies weren't available, then ethanol would be far less popular.

[Source: Vicki Vaughan / San Antonio Express News]

It's time to take a serious look at our country's federal gasoline tax. According to the New York Times, it's been set at 18.4 cents per gallon since 1993. This is FAR lower than any other industrialized nation. The article also points out that according to the International Energy Agency, America's overall gas taxes in August averaged just 40 cents per gallon while Britain and Germany were at $4.24 and $3.99, respectively.

Over the past 13 years a lot has changed. Just look at the Consumer Price Index (CPI). It has gone up 59.4 points during that time, meaning what would have been priced at $1.45 in 1993 would cost $2.04 today. Yet, the federal gas tax has remained rock steady. Earlier, Mike pointed out that the U.S. only consists of about 5 percent of the global population and yet consumes 25 percent of its oil, two-thirds of which is used for transportation. What happens when the rest of the world starts asking for its fair share? Peak oil, anyone?

There's more, like right-wing support and a touch of Pigovian economics, after the jump...

According to USA Today, General Motors is building a prototype home hydrogen refueling station. Honda also has a home model in the works.

GM has been on a hydrogen binge lately, allowing journalists to drive the 4^th generation powerplant in the Sequel and announcing that 100 Equinox fuel-cell vehicles will be put into service next year. Officials are also on record that they want to have production fuel-cell vehicles around 2011.

The home refueling station could be powered by electricity or sunlight. It can be used as a backup until more hydrogen filling stations are built. California has just 23 stations with another 15 coming. Shell Oil, which is GM's partner in the hydrogen buildup, has immediate plans for only six of the multi-million-dollar stations.

Related:

• GM to build world's largest fuel cell fleet
• Sequel Test Drive, Part 1: Intro

[Source: USA Today via FuelCellWorks.com]