«A large percentage of the cost
of a gallon of ethanol goes toward making enzymes — which are proteins — to degrade the starch and cellulose for fermentation,» Tyo said.
The current price is now roughly 20 times the cost
of a gallon of ethanol.
The two men said the cost
of a gallon of ethanol could cost as little as $ 1.07 in five years.
Whether or not ethanol is better than gasoline depends on the direct and indirect environmental impacts associated with the production, delivery, and ultimate use
of each gallon of ethanol, including any changes in land use.
Not exact matches
Later this year the company is scheduled to finish a $ 200 million - plus facility in Nevada, Iowa, that will produce 30 million
gallons of cellulosic
ethanol using corn residue from nearby farms.
That means the total tax on gasoline and
ethanol is 27.9 cents per
gallon, slightly below the national average gas tax
of 29.9 cents per
gallon.
The Energy Policy Act
of 2005 requires the use
of 7.5 billion
gallons of ethanol by 2012, and the industry is ahead
of the target.
The plant opened for business in November 1994, with the capacity to make 15 million
gallons of ethanol a year.
Using Patzek's methodology for every aspect
of ethanol production save the conversion process itself, a
gallon of Corn Plus
ethanol consumes less energy than it contains — even before factoring in credit for coproducts.
The biotech companies claim a 30-fold reduction since 2000, from about $ 5.60 per
gallon of ethanol to at most 18 cents; NREL puts the cost at 32 cents.
If we could find an effective way to convert it, corn residue could provide another 20 billion
gallons of ethanol by around 2040, according to a recent report from the Oak Ridge National Laboratory in Tennessee.
Last year about 1.6 billion bushels
of corn were fermented in the United States to produce 4 billion
gallons of ethanol, double the amount for 2001.
Finally, the
ethanol — 2.7
gallons from a bushel
of corn — is cooled into a liquid and denatured with gasoline.
7 So much for recycling: Burials in America deposit 827,060
gallons of embalming fluid — formaldehyde, methanol, and
ethanol — into the soil each year.
A more realistic, if still optimistic, scenario sketched by the National Corn Growers Association anticipates that corn
ethanol production will quadruple to 16 billion
gallons by 2015, not quite 7 percent
of the likely demand.
Thomas Foust, the biotechnology manager at NREL, says the cost
of making
ethanol from cellulose has dropped to $ 2.26 a
gallon or less.
The goal, however, is $ 1.07 — what NREL and the Energy Department figured was the cost to make a
gallon of ethanol from corn kernels at the time NREL made the enzyme pact.
This wrong - headed policy, pushed by an aggressive farm lobby, gives a 51 - cent tax credit for each
gallon of ethanol blended into gasoline.
The 2005 Energy Policy Act mandates a minimum
of 7.5 billion
gallons of domestic renewable - fuel production, which will overwhelmingly be corn - based
ethanol, by 2012.
Each day the facility would convert 1,000 tons
of wood chips and waste from Georgia's vast pulp and paper industry into 274,000
gallons of ethanol.
Since then, corn
ethanol production has more than doubled to about 36.5 million
gallons per day — meaning
ethanol already is nearly 10 percent
of U.S. fuel supply.
Congress in 2007 required that refiners blend 36 billion
gallons of ethanol into fuel supply by 2022.
Jeff Lautt, chief executive
of POET, said that over the past six years, the company has been able to drive down the cost
of making cellulosic
ethanol from $ 6 a
gallon to $ 3 a
gallon.
Together the two plants would produce, at best, 22 million
gallons of ethanol a year by using sulfuric acid to break the lignocellulose bonds and then burning the leftover lignin to power fermentation
of the cellulose into
ethanol.
If you then combine that with E85 fuel, which is 15 percent gasoline and 85 percent
ethanol, you just got a 320 - mile - per -
gallon SUV because the efficiency times the biofuel saving
of oil multiplies.
«We produce 70
gallons of ethanol per ton
of waste,» says engineer Arnold Klann, BlueFire's president and CEO.
The Obama administration seems to agree, granting $ 786 million in 2009 for biofuels research and setting up the Biofuels Interagency Working Group to study how best to meet the renewable fuel standard mandated by Congress that will require increasing the amount
of renewable fuels, such as
ethanol, to 36 billion
gallons by 2022.
Obama has, however, also been a supporter
of ethanol made primarily from corn — a prominent industry in his home state
of Illinois — and recently told farmers he supports federal mandates to make nine billion
gallons (34 billion liters)
of ethanol to use as fuel this year.
Municipalities are already fighting over water supplies with the booming biofuels industry: citizens in the Illinois towns
of Champaign and Urbana recently opposed a local
ethanol plant's petition to withdraw two million
gallons a day from the local aquifer to produce 100 million
gallons of ethanol a year.
The report added that «a biorefinery that produces 100 million
gallons of ethanol per year, for example, would use the equivalent
of the water supply for a town
of about 5,000 people.»
Biorefineries produce about 15 billion
gallons of ethanol a year.
Enzymes cost about 50 cents per
gallon of ethanol, so recycling or using fewer enzymes would make biofuels more inexpensive.
That same quarter acre would produce 40 bushels
of corn — 100
gallons of ethanol, worth maybe $ 300.
The researchers conducted more than 60 experiments in which about 3.5 ounces
of saline or
ethanol solutions representing the planetary projectile that hit Earth was dropped into a rectangular tank holding about six
gallons of fluid representing the early Earth.
The company can produce more than 100
gallons of fuel per ton based on lab experiments because bacteria make more
ethanol: «We aren't producing butanol, propanol, hexanol, octanol, and all the other alcohols,» Bolsen says.
Yet RangeFuels» fancy new
ethanol plant, which will eventually pump out 100 million
gallons of fuel a year, will feed mostly on wood chips.
Nine billion
gallons of corn
ethanol were produced in the United States in 2008, twice as much as in 2006.
According to Richard Bain, a researcher at NREL, the estimated cost
of producing a
gallon of ethanol stands at $ 2.10 today.
However, more than 10 billion
gallons of ethanol will be transported and blended in 2009, and the earlier limitations in
ethanol distribution and blending are no longer the major factor in the growth
of the industry.
«The amount
of ethanol produced by chemical catalysis is around 70 or 80
gallons perton,» says Wes Bolsen, chief marketing officer for Coskata, located in Warrenville, Illinois.
Troubles With
Ethanol The U.S. Energy Independence and Security Act
of 2007 [pdf] set a target to produce 9 billion
gallons of biofuel in 2008.
At the same time, the steep price
of gasoline — and corn — means that next - generation
ethanol can be profitable even if its price doesn't reach what Khosla Ventures» Kaul calls the «holy grail»
of $ 1 a
gallon.
«In the Southeast there is enough biomass from wood products alone to make 10 to 15 billion
gallons of fuel a year,» says Mitch Mandich, CEO
of Range Fuels, based in Broomfield, Colorado, the firm building what may be the first U.S. plant to make next - generation
ethanol commercially.
In November researchers at the University
of Texas at Austin found that producing corn
ethanol consumes 28
gallons of water per mile traveled, whereas conventional petroleum uses 0.15
gallon.
They contain more energy per volume; a car driving on a
gallon of ethanol will go only 67 percent as far as a car on a
gallon of gasoline; on butanol, it can go 80 percent as far.
One example isPanda
Ethanol, which is building the largest biomass plant in the United Statesin Hereford, Texas, where it will use the waste
of 3.5 milliongrazing cattle to fuel the production
of approximately 115 million
gallons ofethanol per year.
• 2006
ethanol capacity was 4.4 billion
gallons, with an expectedincrease
of 2.1 billion
gallons with current construction and expansionprojects.
EPA recently revised its cellulosic target for 2013 from a proposed 14 million
gallons of ethanol - equivalent to a final requirement
of 6 million
gallons (Greenwire, Aug. 6).
LanzaTech has partnered with Global Fortune 500 Companies and others to use this technology, including facilities that can each produce 100,000
gallons per year
of ethanol, and a number
of chemical ingredients for the manufacture
of plastics.
It takes something like seven percent more energy to create a
gallon of ethanol than that
gallon even contains.