As expected, VeraSun Energy and US BioEnergy, two large American ethanol producers, have become one. In fact, the just-merged company expects to be the largest producer of ethanol in the United States by the end of this year, producing 1.64 billion gallons of the car-liquor. The newly-formed company is called VeraSun Energy Corporation and holds claim to eleven functioning ethanol plants with five more in construction.

CEOs from both companies praised the merger, with Don Endres of VeraSun saying, "We look forward to realizing the synergies of our combined business, as we expect to reach 16 biorefineries and an operating capacity of more than 1.6 billion gallons by the end of 2008." Gordon Ommen from US BioEnergy adds, "This is a very exciting transaction that places us in the No. 1 position in the industry." Both men will remain with the company, Endres as CEO and Ommen as chairman.

Too bad the news didn't accompany an amazing announcement regarding cheap and abundant cellulosic ethanol.

[Source: VeraSun Energy Corporation]

From Domestic Fuel, we hear that VeraSun is currently testing Ford's Hybrid Escape using E85. The two-year test is meant to "demonstrate the benefit of converging flexible fuel and hybrid technologies." For some people, this combination of hybrid efficiency with farmer-friendly corn ethanol is just the thing for an SUV like the Escape. And ethanol-producer VeraSun likes that getting the biofuel into a hybrid is good for business and, in some ways, the environment. VeraSun will also open a new plant in Charles City, Iowa this Friday, where Sen. Barack Obama will be giving the keynote address.

Related:

• Autoblog Green Podcast #9 - Ford's hybrids and hydrogen

[Source: Domestic Fuel]

There are certainly no lack of methods to make your travels less environmentally damaging than they used to be. Here's another option, if you're into ethanol: VeraSun Energy and Enterprise Rent-A-Car announced last week that the two companies will work together to use VeraSun's E85 brand (VE85) in Enterprise's flexfuel vehicles, wherever VE85 is available.

This is (potentially) no small change. Enterprise has 41,000 E85-ready vehicles for rent. But VeraSun is only available at about 90 stations in America. The companies are saying this move is meant to not only use fewer fossil fuels, but to also introduce E85 (ok, VE85) to more people. As William L. Honnef, VeraSun senior vice president of sales and marketing says in the release, "This is another step forward in our continuing pursuit to move E85 further into the mainstream and to support those retailers who are making the fuel available in their marketplace."

Related:

• VeraSun and GM bring D.C. its first E85 fueling location
• BioTown, USA getting an ethanol plant from VeraSun Energy
• VeraSun to produce biodiesel from ethanol co-product

[Source: VeraSun Energy Corporation]

Now we're getting somewhere. And by "we" I mean BioTown, USA (Reynolds, Indiana). While last year we had stories about how this small town in Indiana is trying to grow and make all of its own energy but still didn't have any ethanol pumps (so all the flexible-fuel vehicles in the town were cruising on gasoline), now we can report that the town can soon check off making ethanol from their To Do list.

The Dakota-based VeraSun Energy Corp. officially announced this week it plans to build an ethanol biorefinery in town. Construction prep will start in May and should be finished 16 months later. Add this to the recent announcement of the biomass-to-electricity generator and the town's goal looks more likely now than ever.

Related:

• BioTown, USA's latest upgrades include biomass-to-electricity generator
• CSNY buses visit BioTown, USA
• Why BioTown, USA doesn't have any ethanol
• BioTown, USA

[Source: VeraSun Energy via Domestic Energy]