The Economic Feasibility of Ethanol Production from Sugar in the United States

Hosein Shapouri and Michael Salassi

No 322769, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: Excerpts from the report: Ethanol is a high-octane fuel which is used primarily as a gasoline additive and extender. The reduction in use of methyl tertiary butyl ether (MTBE) due to its environmental problems caused by groundwater contamination and surging prices for petroleum-based fuels are dramatically increasing the demand for ethanol and the interest in ethanol production in the United States. Ethanol can be produced from carbohydrates such as sugar, starch, and cellulose by fermentation using yeast or other organisms. The purpose of this report is to investigate the economic feasibility of producing ethanol from sugar feedstocks in the United States. These sugar feedstocks include: (1) sugarcane juice, (2) sugar beet juice, (3) cane or beet molasses, (4) raw sugar and (5) refined sugar. Estimated costs of producing ethanol from these feedstocks are presented along with a discussion of other factors that may influence the economic feasibility of converting sugar feedstocks into ethanol. Comparisons are made with grain feedstocks, specifically corn.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Production Economics; Research and Development/Tech Change/Emerging Technologies; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 78
Date: 2006-07
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:322769

DOI: 10.22004/ag.econ.322769

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