A subsidiary of Carmel-based Telamon Corp. that supplies racing teams with ethanol-based fuel made from Indiana corn has signed contracts giving it a distribution channel in 26 states.

National Biofuels Distribution LLC began marketing the fuel, dubbed Ignite, last September to sprint and midget car teams that run on the dirt tracks prevalent throughout the Midwest.

The company on Aug. 9 signed a contract with its first multi-state distributor, Texas-based Lone Star Super Gas Inc. It will market and sell Ignite in Arkansas, Arizona, California, Louisiana, Mississippi, Nevada, New Mexico, Oklahoma, Tennessee and Texas.

Ten days later, on Aug. 19, National Biofuels expanded its distribution territory to 15 more states by signing a deal with Iowa-based Diamond Oil. The agreement gives the company a distribution outlet in Colorado, Idaho, Iowa, Illinois, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, Wisconsin and Wyoming.

Ignite received some high-profile exposure at ESPN’s X Games in Los Angeles from July 29 to Aug. 1, when the fuel powered three race teams that competed in rally car and super rally events, National Biofuels said.

Reggie Henderson, former executive director of the Indiana Minority Supplier Development Council, has been spearheading National Biofuels Distribution's growth effort as president of the subsidiary.

Telamon, a telecommunications supplier, was founded in 1985 by Taiwanese native Albert Chen and is one of the largest minority-owned businesses in the state.

While the plunge into alternative fuels may seem like a stretch for Telamon, Chen said his interest in green issues led him to endorse the idea introduced by Henderson.

In addition to racing fuel, the company also markets E85 biofuel for municipal and corporate fleets. E85, which is 85-percent ethanol and 15-percent gasoline, is cheaper than traditional gas and can be used in nearly 8 million flex-fuel vehicles on U.S. roads today. Indiana has more than 120 pumps—tied for third most with Iowa and Wisconsin.

The racing fuel National Biofuels is marketing is blended with a higher ethanol content and burns even cleaner than the E85 used in average vehicles. Perhaps most important, its formula is cheaper than similar fuels produced by larger competitors.

National Biofuels purchases its fuel from Central Indiana Ethanol LLC in Marion.