Researchers claim they are close to perfecting a process of blending ethanol with diesel fuel. The new fuel would help eliminate emissions and initially will be for agricultural and off-road use.

Corn-based ethanol doesn't blend well with straight diesel. However, researchers have found that ethanol blended first with soy diesel and then added to petroleum diesel works well.

"Basically we are there," Al Kasperson, who runs Dakota Renewable Fuels Co. in Watertown, SD, told the Grand Forks (ND) Herald. The fuel blend would help create "a market for American-grown fuel so we can reduce the need for imported petroleum products," he said.

A half-diesel, half-ethanol blend to be mixed at various rates with petroleum-based diesel also is being tested. The 12-month study is scheduled to be complete by October.