The U.S. ethanol industry is expressing their disappointment in the Indy Racing League’s decision to promote ethanol made in Brazil. The IRL is set to finalize a contract with the Brazilian government in order to secure ethanol for the 2009 IndyCar season. Ethanol groups have stated that the IRL did not alert U.S. corn growers of their plans to go outside of the states to secure a clean fuel for their upcoming racing season.  The IRL has recently responded to these statements. The IRL has explained that while they had previous contracts with U.S. ethanol producers, the IRL was notified that these producers would not be renewing the agreement for the 2009 season. No other American-based ethanol organization stepped up with a proposal and as a result, the IRL was forced to look elsewhere.

Source: stltoday.com, insideindianabusiness.com

The Indy Racing League has signed a deal that will have Indy Cars running on Brazilian ethanol for the 2009 season. The IRL has been racing exclusively on the ethanol since the 2007 season. Under the deal, the Brazilian suppliers will be responsible for producing the approximate 120,000 gallons of ethanol used each IRL season.

Brazil is the second-largest producer of ethanol behind the United States. However, Brazil is the world’s largest exporter of ethanol and is able to produce the biofuel with sugar cane, which is cheaper to make than the corn-based ethanol.

Source: usatoday.com