Interesting. Maybe it IS worth it!

Oct 23, 2005 8 Replies

From:

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Economics of corn ethanol in the U.S.



While the energy balance of ethanol production is controversial and estimates vary widely, the economics are more certain. Ethanol production from corn costs $1.10 per US gallon (290 $/m²). [7] This figure takes into account a government subsidy of $0.214 per US gallon (57 $/m²). Additionally, corn farmers receive subsidies equivalent to about $0.61 per US gallon (161 $/m²) of ethanol. Finally, the government subsidizes $0.54 per US gallon (143 $/m²) of ethanol sold as fuel. Totaling these subsidies and including the $1.10 cost of production gives $2.464 per US gallon (651 $/m²) of ethanol.



The national trade deficit (USA) has risen to an all time high of $686 billion. Most of this rise has been attributed to the record high prices of crude oil ($67/barrel). [8] Domestic production of ethanol for fuel has the potential to ease this deficit.


How many BTU's in a gallon of corn ethanol compared to a gallon of 87 octane gasoline?

Here's the deal. According to the site, they have to cut ethanol with gasoline to LOWER the octane, and E85 (85% Ethanol/15% gasoline) is 105 octane!

Sure...the higher the octane rating the lower the volatility of the fuel...remember how a high octane rating will prevent detonation?...that's because octane reduces volatility, IOW it's not as flammable. People get the idea that high octane fuel is more 'powerful' than low octane fuel whereas the opposite is true.

The reason for this mistake is that you use high octane in engines which have high compression therefore producing higher power.

You 'cannot' use low octane fuel (which has more power) because it'll detonate and ruin your engine...

I'd still like to know the BTU comparison between ethanol and 87 octane gasoline...I feel that the better buy is gasoline. (gut feeling)

Since the OP didn't answer, I will:

?Btu content (LHV):

- Diesel fuel 128,450 per gallon

- Gasoline 116, 090 per gallon

- LPG 84,950 per gallon

- Natural gas 983 per cubic ft.

- Electricity 3,412 per kwh

- Coal 9,773 per pound

- Ethanol 76,330 per gallon

In other words, a gallon of ethanol provides about 2/3 the energy of gasoline. If retail gasoline costs $3 a gallon, retail ethanol would have to cost only $1.97 a gallon to provide the equivalent amount of energy per dollar.

At $60 a 42-gallon barrel, crude oil sells for $1.43 a gallon. To that you have to add refinery costs. I am not sure how much those are, but I believe wholesale gasoline is currently selling for about $1.80 a gallon before taxes. That means ethanol would have to wholesale for about $1.20 per gallon to be competitive. At present, ethanol can only compete with federal subsidy and a federal requirement that it be used.

Gasoline from crude oil generates revenue for the highway trust fund to support the highway infrastructure. Ethanol takes a federal subsidy and increases the deficit.

Merritt

Thanks Travis, appreciate it...

No vehicle offered for sale today burns ethanol exclusively. Ethanol is mixed with gasoline for the so called benefit of burning 'cleaner.' You are correct the ONLY reason it is used is because the Senators in the farm states pushed the legislation though Congress, not because it is cost effect. The reason being ethanol is considered 'renewable' energy The sad part is the oil companies could add alcohol to the gasoline far less expensively by using the methanol available in the refining process. That however is not renewable so the excess methanol is simply burned off at the refinery. Your government at work.

mike hunt

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