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Between 2005 and 2009 the tax credit for blending petrol with ethanol cost $17 billion.
Despite all the research going into cellulosic ethanol, cost remains a formidable hurdle.
In early March, the company was one of four companies awarded a total of $114 million over four years by the DOE for small-scale biorefinery projects with the goal of making cellulosic ethanol cost competitive in five years.
Due to high cost of cellulase enzymes (up to 30% of ethanol cost) and low sugar yields, the hydrolysis process is one of the major obstacles in the commercialization of cellulosic ethanol production (Bansal et al. 2009; Kadam et al. 2004; Kumar and Murthy 2011).
Potential for significant ethanol cost reductions exist in increasing pentose fermentation efficiency and reducing biomass and enzyme costs.
The relationships shown above clearly show that ethanol cost estimates are influenced by a great number of assumptions.
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Brazilian sugar-based ethanol costs far less to produce than American corn-based ethanol.
Moreover, he says, ethanol costs less than regular petrol.
By most reckonings, a barrel of gasoline displaced by corn ethanol costs the United States Treasury somewhere between $36 and $65 with almost no reduction in harmful greenhouse gases.
That could save at least 10 cents a gallon in ethanol costs, said Michael Ladisch, director of the Laboratory of Renewable Resources Engineering at Purdue.
The Congressional Budget Office found that reducing carbon dioxide emissions by using ethanol costs at least $750 per ton of carbon dioxide, wildly more than other methods.
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